SBI Insurance Policy for Senior Citizens

by Anumeha Singh Insurance Specialist

With life expectancy rate rising in India, getting a good senior citizen’s life insurance policy is becoming a must-have for all the older adults above 60 years. It has been reported that presently about 95 million Indians are above the age of 60 years and around 8 million people have crossed over 80 years. An insurance policy for senior citizens gives a sense of protection to them and their family.

Life insurance of the senior citizens offers them not only a protection against unforeseen contingencies but also becomes a source of support income for the whole family, wherein the policyholder gets a return on investment, provided as monthly or in a lump sum figure. And that’s not all, the SBI insurance policy for senior citizens provides buyers with the flexibility to select the term and the cover amount.

One can apply for the SBI Insurance policy both online or offline, choose their desired term plan and get a return of the premium. It becomes a corpus for the nominee, who is entitled to receive the amount when an unfortunate demise of the insured person occurs.

Kinds of Term Plans

SBI insurance policy offers options to the policyholders. The first is SBI Life e-Shield that is more of a term insurance plan but offers low premium amounts. It also provides choice to the senior citizens to get life insurance and accidental death advantage for their nominee. Also, there are tax benefits under this scheme. SBI Life Smart Swadhan Plus is another term insurance plan that gives variable payment selection and returns the total of the basic premiums upon maturity. Here too, tax benefits can be availed.

Besides the term plans, there are endowment policies from SBI Life that are not high on the insurance coverage as term plans but offers flexibility regarding investment. The holder can add to the initial investment and become a platform of wealth multiplier. Under SBI Life Assure Smart Wealth, the holder can get three times higher returns of their single premium amount and offers market linked returns on death of insured or on maturity. SBI Life Smart Builder Wealth is also a one premium payment plan that gives 1.25 times of the premium amount as assured sum. This is also a market-linked product offering high returns on the maturity sum.

Among the other life insurance options available is the SBI Saral Life Pension, which is specific for senior citizens that let the holder purchase an annuity plan from the maturity proceeds. Another life insurance plus pension policy is SBI Life Retire Smart, which stresses on additions to raise the final fund amount. It is an annuity purchase plan that offers the death benefit or maturity benefit to the purchaser. Lastly, SBI Life Annuity Plus insurance plan provides a quick annuity of 50% or 100% income with a capital refund given to the last survivor after the SBI Insurance Policy is terminated.

SBI Insurance Policy Research Tips

Do proper research before finalising the policy that best suits your needs. Online insurance comparison sites become an excellent platform to review various insurance policies for senior citizens. Compare the main elements of the plan like the premium amount; the sum assured, maturity advantage and the other optional add-ons. Also, get the particulars on their investment strategy where they will utilise your funds.

Rates of the policy for the senior citizen insurance policies will vary with age, health condition, family history, lifestyle among several other factors. Moreover, older people with healthy lifestyles will be offered better coverage at lower premiums. Therefore, a thorough review of the varied options available in the market is necessary and very helpful in making the right policy decision. Once the insurance policy product selection is made, one can apply for it either online or via an agent and get the desired insurance coverage.

SBI Policy Benefits

A senior citizen insurance policy:

• Eliminates feeling of being neglected in their old age
• Diminishes financial worries
• Generates income in the form of returns, serving policyholder's various needs
• Gives policyholder's an income tax redemption advantage
• Becomes a source of money for policyholder's funeral and death expenses, medical expenses and other unpaid debts
• Offers flexibility to policyholders to pay premiums regularly or for a limited period
• Becomes a foundation of a good retirement is planning

Documents Required

To avail an SBI insurance policy, the applicant must submit their ID Proof, such as passport, PAN Card, voter’s ID and driving license. Other documents needed include a letter of the National Population Register or Unique Identification Authority of India, which has information like name, Aadhaar number and address of the individual, proof of residence, latest utility bill, and the municipal or property tax receipt. Also, post office savings or bank account statement is required, as some of the primary requisites for the policy.

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Created on Apr 11th 2018 06:38. Viewed 964 times.

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