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SBI Insurance Policy - RiNn Raksha
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SBI RiNn Raksha Insurance Policy

SBI RiNn Raksha Insurance Policy

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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.

Education loan State Bank of India SBI
GyanDhan
Ananya Ghai
Updated on:  07 Nov 2024  | Reviewed By:  Aman  | 43K | 13  min read

SBI RiNn Raksha insurance is a mandatory 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. In short, this insurance policy creates a win-win situation for you and the lender because it reduces the risk to both.

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What is the RiNn Raksha Policy?

SBI RiNn Raksha policy is a mandatory 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, 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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Eligibility Conditions of SBI Life RiNn Raksha

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

 

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Key Features of SBI RiNn Raksha Insurance Policy

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
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    Death Benefit - In the unfortunate event of your death, the insurance coverage will correspond to the outstanding loan balance at the time of death, based on the amortization schedule at the predetermined interest rate set at the beginning of the plan. If death occurs at any point during a given month, the death benefit will be equal to the outstanding loan amount at the beginning of that month.
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    Disability Benefit (with rider): By opting for the SBI Life – Accidental Total and Permanent Disability Benefit Rider, the insured will be covered up to the full outstanding loan amount. In essence, the Sum Assured under the death benefit will be payable if the insured person becomes totally and permanently disabled due to an accident.
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    Loans covered: The RiNn Rakshan Insurance policy covers outstanding balances on housing loans, car loans, agricultural loans, education loans, and personal loans.

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. 

Sum Assured:

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.

Affordable Premiums:

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

 

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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:

 

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    Gold - You can choose this option if you opt for a 5-year policy term. In case of an eventuality, SBI pays “the entire outstanding amount at the time of death as per the floating rate of interest offered by you irrespective of the loan schedule given in the Certificate of Insurance” as long as the full premium is paid.
 
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    Platinum - You can select this option if you opt for a 5-year policy term or above it. Here SBI pays whichever is higher of the two - “either the outstanding loan as per the floating interest rate offered or the outstanding loan amount as per the interest rate fixed at the inception of the cover.”

Moratorium Period:

SBI Rinn Raksha insurance policy plan offers a minimum moratorium of 3 months and a maximum of 72 months.

Duration of Policy:

The minimum term period of the SBI Life Rinn Raksha insurance policy is 2 years, and the maximum is 30 years.

Exemptions:

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.

 

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Top 5 Benefits of SBI RiNn Raksha Insurance Policy

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:

Financial Security:

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.

Tax Benefits:

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.

Flexible Coverage:

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.

Free Look Period:

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:

 

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    We simplify the entire process by making most of it online. You apply for the loan through our site. Then we send you the list of documents required specifically for your profile.
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    We make sure that you don’t have to run from pillar to post to submit and verify the required documents. After you have gathered them, our representative picks them up from your doorstep and submits them on your behalf to the SBI branch.
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    We even take care of any bottlenecks that happen during loan processing and approval. For example, we expedite the process of submitting any additional documents that the bank may require. Through systematic follow-up, we also reduce the turnaround time for evaluating the property.
 

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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Frequently Asked Questions

 

What are the key features of SBI RiNn Raksha Insurance Policy?
 

The key features of SBI's RiNn Raksha Insurance Policy include:

 

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    Affordable premiums with a choice of single premium or regular premium payment options.
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    Flexible policy term options ranging from 5 to 30 years.
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    Coverage up to age 70 or 75 years, depending on the chosen policy term.
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    Life cover with a sum assured of your choice, subject to a minimum amount.
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    Option to add accidental death benefit rider for additional coverage against accidental death.
Who is eligible to apply for SBI RiNn Raksha Insurance Policy?
 

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.

How much coverage can I get with SBI RiNn Raksha Insurance Policy?
 

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.

What is the premium payment frequency for SBI RiNn Raksha Insurance Policy?
 

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.

Can I add riders to SBI RiNn Raksha Insurance Policy?
 

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.

Are there any SBI Life RiNn Raksha tax benefits available?
 

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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