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Discover SBI Life RiNn Raksha - A group credit life insurance plan Check Features, Benefits, Eligibility conditions, Premium Rates, Sum Assured & tax Benefits.
SBI RiNn Raksha insurance is an education loan insurance that safeguards the borrower’s family from the burden of repaying the student loan in case of the unfortunate event of the student’s death. If the borrowers opts for this insurance then instead of their co-applicant repaying the loan, the insurance waives the entire outstanding amount. In short, this insurance policy creates a win-win situation for you and the lender because it reduces the risk to both.
The SBI Rinn Raksha insurance policy for is an optional loan insurance policy for borrowers when they secure the SBI’s education loan for studying abroad.
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SBI RiNn Raksha policy is a term insurance plan offered by the State Bank of India (SBI), one of India's most reputable and trusted banks. When a student secures an SBI education loan for studying abroad and opts for an insurance policy, they are required to pay a single premium to activate the coverage. If an unfortunate incident takes place and the loan applicant or co-applicant passes away, the insurance policy will settle the outstanding education loan amount.
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Choosing the right time to opt for SBI RiNn Raksha Insurance is crucial to maximize its benefits and ensure financial security. Opting for SBI RiNn Raksha Insurance at the time of loan sanction provides immediate protection against unforeseen circumstances. This ensures that from the very start of your loan tenure, you and your family are safeguarded against financial burdens due to unforeseen events like death, disability, or critical illness. Adding the insurance at the loan sanction stage can streamline the process as it is integrated into the loan agreement. This can save time and reduce the complexity of managing separate policies.
You can buy the policy if you are above 16 years of age. The coverage scheme is especially recommended if you take an SBI education loan for studies abroad because you get a better interest rate and security for your family.
The RiNn Raksha policy is especially recommended if you take an SBI education loan for studies abroad because you get attractive interest rates and security for your family.
Feature | Minimum | Maximum |
---|---|---|
Size of the group in the first year |
20 members |
No Limit |
Entry Age |
16 Years |
70 Years |
Maturity Age |
N/A |
75 Years |
Term |
2 Years |
30 Years |
Sum Assured per member |
INR 10,000 |
No Limit |
SBI RiNn Rakha plans not only cover the life of the loan applicant, i.e., the student but also up to two co-borrowers. Below are listed some of the top features of the SBI RiNn Rakshan Policy.
Type | Group credit |
---|---|
Coverage |
|
Amount |
Minimum – INR 10,000 |
Premium Payment Frequency |
Monthly, Quarterly, Half-Yearly, and Yearly. |
Surrender Value |
The surrender value becomes available after the first year of coverage, provided the first year’s premiums have been paid. |
Tax benefits |
Insured persons are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. |
Nomination |
The master policyholder is required to seek nomination from the members of the scheme. |
Exclusion |
Suicide exclusion is applicable. If the employee commits suicide (whether sane or insane) during the first year of cover, the full death benefit stated in the benefit payable section will not be paid. |
It is the amount that a family receives from an insurance policy. This amount is decided when the policy starts. The minimum sum assured is INR 10,000, and there is no limit to the maximum amount. In the case of an education loan, the sum that SBI Rinn Raksha insures is the outstanding loan amount.
RiNn Raksha Premium amount is the amount you have to pay to activate SBI Rinn Raksha coverage. This plan provides extensive coverage at pocket-friendly premiums, making it accessible to a wide range of individuals. The precise amount is based upon several factors. You can pay the premium monthly, quarterly, half-yearly, or yearly. You can choose two types of premium payment terms, Single or Level. Within Level Premium, you have two more options, either a 5-year payment mode or 10 years.
Policy term | Policy payment mode |
---|---|
2 years - 30 years |
Single-premium |
8 years - 30 years |
Premium payment term - 5 years |
15 years - 30 years |
Premium payment term - 10 years |
One should remember that SBI’s Global Ed-vantage loans have a fixed rate of interest. For all loans that have a floating rate of interest like education loans, SBI RiNn Raksha offers two more options:
SBI Rinn Raksha insurance policy plan offers a minimum moratorium of 3 months and a maximum of 72 months.
The minimum term period of the SBI Life Rinn Raksha insurance policy is 2 years, and the maximum is 30 years.
The RiNn Raksha insurance policy includes a suicide exclusion clause which states that whether the insured individual, sane or insane, commits suicide within the first year of coverage, the full death benefit mentioned in the benefit payable section will not be paid.
SBI RiNn Raksha Insurance Policy offers numerous benefits to borrowers. It's important to thoroughly review the policy documents to understand the specific terms and conditions. Here are the top five benefits:
The primary benefit of the SBI RiNn Raksha Insurance Policy is the peace of mind it offers. In the event of the policyholder’s demise, the outstanding loan amount is covered, ensuring that the family is not burdened with loan repayment. This provides immense comfort and reassurance, knowing that your loved ones will be financially secure even in your absence.
The premiums paid for the SBI RiNn Raksha Insurance Policy are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the sum assured received by the nominee is tax-free under Section 10(10D) of the Income Tax Act, 1961. These tax benefits can significantly reduce your taxable income, making the insurance policy a financially savvy choice.
Borrowers who opt for the SBI RiNn Raksha Insurance Policy can avail of a discount of 0.50% on the interest rate of their education loan. This lower interest rate can result in substantial savings over the tenure of the loan, reducing the overall cost of borrowing.
The SBI RiNn Raksha policy offers flexible coverage options tailored to your needs. It covers your outstanding debts in the event of your demise. Moreover, there is an option to increase the coverage up to 120% of the loan amount at the beginning of the policy. This additional coverage ensures that any unforeseen expenses or fluctuations in interest rates are also covered, providing comprehensive financial protection.
The SBI RiNn Raksha Insurance Policy includes a 15-day free look period, starting from the date you receive the policy document. During this time, you can thoroughly review the policy terms and conditions. If you decide the policy does not meet your needs, you can cancel it within this period and receive a refund. The refund amount will be adjusted for proportionate risk charges, expenses incurred on medical examinations, and any applicable stamp duty charges. This free look period allows you to make an informed decision without any financial loss.
There is no doubt that the SBI RiNn Raksha Policy brings with it several indispensable advantages when you are taking an education loan. So, if you’ve made the right decision to apply for an SBI loan, here’s how GyanDhan helps you:
With GyanDhan, the only effort you put is to visit SBI just once - for signature and verification! Wondering how to apply for an education loan to get all the SBI Rinn Raksha benefits? All it takes is a callback from GyanDhan!
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The key features of SBI's RiNn Raksha Insurance Policy include
Any individual between the ages of 18 and 60 years can apply for SBI's RiNn Raksha Insurance Policy, subject to meeting the underwriting guidelines of the insurance provider.
The coverage amount, known as the sum assured, is chosen by the policyholder at the time of purchasing the policy. The minimum sum assured may vary based on the insurance provider's guidelines.
SBI's RiNn Raksha Insurance Policy provides two premium payment options: single premium and regular premium payment. The regular premium payment frequency can be yearly, half-yearly, quarterly, or monthly, depending on your convenience.
Yes, SBI's RiNn Raksha Insurance Policy allows you to enhance your coverage by adding an accidental death benefit rider. This rider provides additional coverage in case of death due to an accident.
Yes, you may be eligible for tax benefits on the premium paid and benefits received under SBI's RiNn Raksha Insurance Policy, as per the prevailing tax laws. However, it is advisable to consult a tax advisor or financial expert for accurate information.
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