SBI Life Insurances single-premium policy

Our Banking Bureau
31 August 2002

Mumbai: SBI Life Insurance Company has launched a new investment type cover, Sukhjeevan Pratham, a single-premium policy with enhanced features over its earlier product Sukhjeevan.

In addition to insurance cover, the policy provides a yield of 6.7 per cent for males and 6.72 per cent for females on a 10-year investment on a compounded basis.

SBI Life managing director and CEO R Krishnamurthy says the policy will be sold through the companys agent network. Since this is a simple product, the company will also forward forms to those who call up at the companys toll free number in 40 centres across India. Sukhjeevan Pratham is a modified version of SBI Lifes earlier policy Sukhjeevan and comes with more simple features.

It is aimed at applicants aged between 18 and 65 and offers terms of five and 10 years. The policy can be bought for the sum assured from a minimum of just Rs 10,000 to a maximum of Rs 1 crore. An interesting feature is that since this is largely an investment-type product, all applicants pay the same premium irrespective of their age differences.

The single-premium amount paid for Sukhjeevan Pratham qualifies for a rebate under section 88 of the IT Act within the overall ceiling allowed. All maturity proceeds under the policy at the hands of the policyholder is tax-free. All death claim proceeds received by the nominees are also tax-exempt.