SBI money back policy - truth requested

[indian123]

Employee of sbi life insurance called me up and gave following information for sbi money back policy(15 yr max term)

For sum assured of 3 lakhs, 30 K premium, with total 115% of bonus on 15th year (10, 15,20,45 on 3rd,6th,9th and 15th yr respectively) plus 10% "guaranteed" cumulative interest for amount invested.

Also this can be surrendered on 4th year with benefit of 1.5 lakhs (1.2 L over investment of 90K for 3 years and 30K bonus)

However the brochure doesn't guarantee 10%, it doesnt speak anything except "bonus". Also it says policy can be surrendered on 4th year but appends it *conditions apply.

Any expert can throw light on it plz? is this valid and truthful information or fraudulent sales/marketing trick of trapping money

[v.r.s.nathan]

However the brochure doesn't guarantee 10%, it doesnt speak anything except "bonus". Also it says policy can be surrendered on 4th year but appends it *conditions apply.
It is IRDA instructions that you can show returns in 6% and 10% example to the proposer. Bonus is declared on the basis of insurance company performance.

Any expert can throw light on it plz? is this valid and truthful information or fraudulent sales/marketing trick of trapping money
Please tell me the name of the product to comments on it.

[indian123]

It is IRDA instructions that you can show returns in 6% and 10% example to the proposer. Bonus is declared on the basis of insurance company performance.

Please tell me the name of the product to comments on it.


Hi

its sbi money back option 2 plan. according to the caller(sbi life employee) for sum assured of 3 lakhs, 30 K premium, with total 115% of bonus on 15th year (10, 15,20,45 on 3rd,6th,9th and 15th yr respectively) plus 10% "guaranteed" cumulative interest for amount invested. On 4th year, you can surrender policy, and for 30k annual premium, 90K (amount paid) + 30K bonus + 30K (10% cumulative interest) would be paid back.

Also this can be surrendered on 4th year with benefit of 1.5 lakhs (1.2 L ovefr investment of 90K for 3 years and 30K bonus)

[v.r.s.nathan]

As per SBI Life Product Brochure - http://www.sbilife.co.in/sbilife/docs/brochure_sbi_life_money_back.pdf
Vested Bonus is not Guaranteed.
If we go by your example - Premium Rs 30000/- per year. Option 2 / 15 years
Guaranteed Survival Benefit payable - After every 3 years on the term following will be paid -
3 years - 10% of Sum Insured (Rs. 30000)
6 years - 15% of Sum Insured (Rs. 45000)
9 years - 20% of Sum Insured (Rs. 60000)
12 years - 25% of Sum Insured (Rs. 75000)
15 yrears - 45% of Sum Insured ( Rs. 135000)

I could not get the word surrender in the Product Brochure.

[v.r.s.nathan]

Instead of this you can go for SBI Saral Shield - http://www.sbilife.co.in/sbilife/images/File/documents/saral_shield_brochure.pdf

For Sum Insured of 750,000; Premium = Rs. 15402 (Age 30)
Remaining amount (Rs15000) you can invest in ELSS MF (you will also get Income tax rebate) and as 10% return (compounded annually) you will get - Rs. 54615/-. Which is better than 30000/-.