CASHIERING 1] What are the modes of payment available? Monthly [only S.I. & C.C.], Quarterly, Half yearly, Annually 2] What are the methods of payment? By local cheque, DD, ATM, S.I on banks / credit card, Bill Desk 3] What is grace period? For yearly mode, Half yearly mode and Quarterly mode cases 30 DAYS from the due date For monthly mode 15 days from the due date No interest is charged during grace period. 4] What is the interest rate? 12% p.a. or 1% per month (simple interest) 5] What happens if premium is not paid within the grace period? If the premium is not paid within the days of grace, the policy lapses and there is no life insurance cover under such lapsed policy. 6] What are tech-lapse cases? Policies where latest premium due is not paid within grace period but duration from last unpaid premium due is less than six months 7] What is the difference between Tech Lapse & Lapsed The only difference between a Tech Lapse policy & a Lapsed policy is that A tech lapse policy can be revived on payment of all the unpaid premiums due till date along with interest thereon and there is no need to submit DGH or any medical requirements based on SUC. However, for a lapsed policy, along with the due amount, DGH and all medical requirements based on SUC are mandatory. 1
FUND SWITCHING 1] Who can do the switching? The policy holder can do the switching of funds 2] How the switching can be done? The policyholder has to submit the prescribed form filling the required information as to the fund type & percentage of funds from & to which the funds are to be switched. The form must be duly signed by the policyholder & the signature must tally with that as per our records. 3] How many switches are allowed under a policy? There is no limit to the no. of switches that can be done under a policy. However, only first 4 switches are free of charge & Rs.100/- is charged from the 5 th switch onwards in a Policy Year. 4] When a fund switch request is invalid? A fund switch request is invalid in case of the following circumstances a. When the switch request is not signed or the signature is not as per our records b. When the switch amount is less than Rs.10000/- c. When the switching is requested from the same fund to the same fund d. When the total of percentage in the TO column is not equal to 100% e. When the Switch To percentage is not in the multiples of TEN 2
REVIVAL 1] How is a policy revived? The policy can be revived by paying arrears of premium with interest and also submitting medical requirements wherever necessary. Medical requirements are according to medical grid. 2] What is the interest charged? 12% p.a. [simple interest] 3] What is DGH? It is DECLARATION OF GOOD HEALTH which is to be filled by the life assured while reviving the policy. 4] When are the medical requirements not necessary for reviving the policy? It is as given below: Age Sum to be revived Up to 35 Up to 45 Up to 60 10 lakhs 5 lakhs 1 lakh 5] What is Sum to be revived [except for Shield & Swadhan Policies]? Sum to be revived = (Sum Assured under the lapsed pol. X Unexpired term of the policy*/term of the policy) + S.A.under other SBI Life pol. taken in last 2 years * Unexpired term = Maturity date - FUP [As per the current provisions, Old Horizon & Unit Plus Policies, once lapsed, can not be revived] 3
1] Who can assign a policy? ASSIGNMENT Policy holder or Assignee of a policy can assign a policy. 2] Can a minor assign a policy? No. a minor can not assign a policy since he is not competent to enter into a contract. 3] What is absolute assignment of a policy? When all the rights under a policy are transferred absolutely to the assignee either by way of gift or for some valuable consideration [without the condition of reversion of rights back to the assignor, except by way of reassignment] it is considered as absolute assignment of the policy. 4] What is a conditional assignment of a policy? When the rights to a policy revert to the assignor on fulfilling certain specified conditions which are beyond the control of the assignor, (e.g. LA s survival till the date of maturity or the death of the assignee during the term of the policy), such assignment is known as conditional assignment of the policy 5] What are the requirements for assignment? Notice of assignment, endorsement in duplicate and original policy document 6] What is the procedure for registering assignment? A Check whether all requirements are received B Check whether the endorsement is duly signed and witnessed C Enter the details in the system through the module D Affix the endorsement on the policy, sign it and put the seal across all its 4 corners. After this take a Xerox copy of the policy document for our records. E Send the endorsed original policy document to the assignee. 7] What extra care is needed while registering assignment? When an Assignment is in favour of an individual person, we must ensure that there is some valuable consideration for the same except where the assignment is in favour of close relative out of natural love & affection. This is to ensure that there is no Moral Hazard or Money Laundering involved. In such cases, photo identity of the assignee has to be called. If the assignment is for valuable consideration, the same must be mentioned in endorsement. 4
REASSIGNMENT 1] What is reassignment? When the assignee transfers all rights, title & interest in the policy, to the previous Assignor, it is known as reassignment. 2] What are the requirements for re-assignment? Requirements are same as for assignment. i.e. Notice of reassignment & reassignment endorsement signed by the current assignee and original policy document 3] Any additional steps to be taken when registering reassignment? When re-assignment is registered, the rights, title & interest in the policy are transferred to the previous assignor. If the previous assignor happens to be life assured then the nomination which was available in the records earlier will be invalid now after reassignment. Hence a letter to this effect should be sent to the life assured asking him/her to make a fresh nomination under the policy.. 5
1] What is nomination? NOMINATION To name a person to whom the money is to be paid in the event of death of life assured. 2] Who can be a nominee? Any person related to the life assured can be the nominee. 3] Who can effect nomination? Only Life assured can effect nomination. No nomination can be done if the life assured is minor. After becoming major the life assured should get the nomination registered under his policy 4] What is change of nomination? If life assured wants to change the nomination from the existing nominee in favour of another person, he has to apply for change of nomination 5] What are the requirements for change of nomination? Notice of change of nomination & endorsement as per the formats - signed by the Life Assured and original policy document 6] Whether a minor can be a nominee? Yes. But an appointee has to be appointed for the minor nominee. 7] Whether there can be multiple nominees? Yes. But no shares can be specified for them and if any of the nominee is minor, appointee has to be appointed. 6
SURRENDER 1] When can a policy be surrendered? A policy can be surrendered after it acquires surrender value as per the conditions given in the policy schedule. 2] When does a policy acquire surrender value? As per policy conditions, generally given in Part-IV of the policy schedule 3] When does SCHOLAR policy acquire surrender value? In case of single premium policies surrender value is acquired after completion of one year. In case of regular premium policies, with term < 6 years it is acquired after completion of 1 year In case of regular premium policies with term > = 6 years surrender value is acquired after completion of 3 years. 4] What is the surrender value for a SCHOLAR policy? For single premium policies during 2 nd year of the policy it is 80% 3 rd year of the policy it is 85% From 4 th year onwards it is 90% Of the premium paid excluding S.T. & rider premium, if any + Cash Value of Vested Bonus [C.V.V.B.] For Regular premium policies: With term < 6 years 60% of premiums (w/o S.T.) paid excluding first year premium and rider premium + C.V.V.B., from 2 nd policy year onwards AND With term > = 6 years 60% of premiums (w/o S.T.) paid excluding first year premium and rider premium + C.V.V.B. from 4th policy year onwards. 5] When does SUDARSHAN policy acquire surrender value? In case of - Regular premium policies with term less than 6 years after completion of one year and after pmt of 1 full year s premium - Regular premium policies with term more than or equal to 6 years, after completion of 3 years and after pmt of 3 full years premium. 6] What is the surrender value of SUDARSHAN policy [single premium]? During 1 st year it is 80% of the premium (w/o S.T.) paid excluding rider premiums, if any + C.V.V.B. During 2 nd and 3 rd year it is 85% of the premium (w/o S.T.) paid excluding rider premiums, if any + C.V.V.B. From 4 th year onwards 90% of the premium (w/o S.T.) paid excluding rider premiums, if any + C.V.V.B. 7] What is the surrender value of SUDARSHAN policy [Regular Premium]? In case of policies with term < 6years it is 60% of the Premium excluding first year premium & rider premiums, if any + Cash value of Vested Bonus In case of policies with term >or equal to 6years it is 65% of the premium excluding first year premium & rider premiums, if any + cash value of bonus 7
8] When do the PENSION policies acquire surrender value? In case of single premium policies and regular policies with term less than 6 years after completion of 1 year from the commencement of the policy In case of regular policies with term equal to or > 6 years after completion of 3 years from the date of commencement of the policy 9] What is the surrender value for PENSION policies? For regular policies With term less than 6 years it is 80% of PPA balance With term equal to or > 6 years it is 85% of PPA balance For single premium policies In 2 nd & 3 rd policy year 80% of the PPA balance From 4 th policy year onwards 85% of the PPA balance 10] What is PPA balance? PPA balance is the [contribution made by customer administrative charges on the same + guaranteed interest on the net contribution + bonus accrued on the same (i.e. net contribution + interest)] 11] Is there surrender value in case of SHIELD AND EDUSHIELD policies? NO 12] When does the Old HORIZON policy acquire surrender value? After completion of one year from the commencement of the policy 13] What is the surrender value for Old HORIZON policy? During 2nd year 90% of [PIV less mortality charges for the entire year with S.T.] 3 rd Year 95% of [PIV less mortality charges for the entire year with S.T.] From 4 th year, 99% of [PIV less mortality charges for the entire year with S.T.] 14] When is partial withdrawal [partial surrender] possible in case of HORIZON policy? After completion of 3 years from the date of commencement of the policy and the fund value on the request date is minimum of Rs.20000/- 15] How is the policy investment value calculated? PIV = No. of units under each fund X NAV of the respective funds 16] When does UNIT PLUS policy acquire surrender value? After completion of one year from the date of commencement of the policy 17] What is the surrender value in case of UNIT PLUS REGULAR policy? During 2 nd year it is 94% of [PIV less mortality charges for entire year with S.T.] 3 rd Year 98% [PIV less mortality charges for the entire year with S.T.] 4 th to 10 th year 99% [PIV less mortality charges for the entire year with S.T.] From 11 th year, 100% [PIV less mortality charges for the entire year with S.T.] 18] What is surrender value in case of UNIT PLUS SINGLE PREMIUM policy? During 2 nd and 3 rd year of the policy - it is 99% of [PIV less mortality charges for the entire year with S.T.] From 4 th year, 100% of [PIV less mortality charges for the entire year with S.T.] 8
MODE ALTERATION 1] When is mode alteration allowed? After completion of first policy year. However during first policy year also, if the payment frequency is to be changed from higher to lower, the same can be done. E.g. From monthly to quarterly, from quarterly to half / yly etc. 2] What will be the effective date for change? The frequency can be changed with effect from the date of the new frequency anniversary, for which the premium is not yet paid, provided the policy is in force. 3] What is frequency anniversary? If the Date of commencement of a policy is, say, 15.7.05, the frequency anniversary under different modes would be as follows Yearly - 15th July every year Half yrly - 15th July and 15 th Jan every year Quarterly - 15th July, 15 th Oct, 15 th Jan, 15th April Monthly - 15 th of every month 4] Is mode change possible in case of lapsed policies? No. Mode change is not allowed for lapsed policies. The lapsed policy must be revived first then only change in mode can be considered. 5] How to calculate premium? Go to SBI Life.co. in site - Go to Calculate premium Link. Age should be the age at entry under the policy. For this, you may be required to adjust the date of birth (especially the year of birth), to arrive at the correct age at entry. Service tax at applicable rates is chargeable. 6] What are the applicable rates of S.T.? In case of Shield & Edushield policies, it is 12.24% & for others it is 1.02% on the net premium payable 9
SERVICING OF HORIZON II 1] What are the premium modes available? Yearly, Half-Yearly, Quarterly & Monthly modes of premium are available. Single Premium not available. 2] When does a policy lapse? If the premiums are not paid within the days of grace, the policy lapses. 3] What are the days of Grace? In case of Yly, Half-Yly & Qly mode, it is 30 days from the due date of unpaid premium and in case of Mly mode, it is 15 days from the due date of unpaid premium 4] What happens when a policy lapses? When a policy lapses, the life cover ceases immediately. No further payments can be accepted unless the policy is revived. No partial withdrawal allowed. 5] What are the different provisions when policy lapses? [a] If premiums are not paid for minimum 3 years The life cover ceases immediately. No further payments can be accepted unless the policy is revived. No partial withdrawal allowed. [b] If premiums are paid for 3 or more years - If Auto Life Cover is not opted, life cover continues till the end of the revival period only. If the Auto Life Cover is opted, life cover continues till the fund value reaches the equivalent amount of 1 year s premium. No top-ups can be accepted unless the policy is revived. But Partial withdrawal is allowed. 6] What is the revival period/ Revival can be done within 5 years from the date of First Unpaid Premium [FUP] 7] When does the policy acquire Surrender Value? After payment of 3 full years premium and completion of 3 full years in case of Regular Premium policy. And after completion of 3 full years in case of Single Premium policy. 8] What is the Surrender Value? During first 3 years NIL From 4 th year onwards 99% of the Fund Value. 9] What are the riders available? No riders are available 10] What is the minimum & maximum Top-up allowed? Minimum Rs. 1000/- Maximum 25% of total basic Regular Premium paid as on Top-up date. (Top-up can be accepted only if all the premiums due till the date of the top-up payment have been paid) 10
SERVICING OF ULIP II 1] What are the premium modes available? Yearly, Half-Yearly, Quarterly & Monthly modes of premium are available. Single Premium available as a different plan. 2] When does a policy lapse? If the premiums are not paid within the days of grace, the policy lapses. 3] What are the days of Grace? In case of Yly, Half-Yly & Qly mode, it is 30 days from the due date of unpaid premium and in case of Mly mode, it is 15 days from the due date of unpaid premium 4] What happens when a policy lapses? When a policy lapses, the life cover & rider cover, if any, ceases immediately. No further payments can be accepted unless the policy is revived. No partial withdrawal allowed. 5] What are the different provisions when policy lapses? [a] If premiums are not paid for minimum 3 years - the life cover & rider cover, if any, ceases immediately. No further payments can be accepted unless the policy is revived. No partial withdrawal allowed. [b] If premiums are paid for 3 or more years - the rider cover, if any, ceases immediately. If Auto Life Cover is not opted, life cover continues till the end of the revival period only. If the Auto Life Cover is opted, life cover continues till the fund value reaches the equivalent amount of 1 year s premium. No top-ups can be accepted unless the policy is revived. But Partial withdrawal is allowed. 6] What is the revival period/ Revival can be done within 5 years from the date of First Unpaid Premium [FUP] 7] When does the policy acquire Surrender Value? After payment of 3 full years premium and completion of 3 full years in case of Regular Premium policy. And after completion of 3 full years in case of Single Premium policy. 8] What is the Surrender Value? During first 3 years NIL From 4 th to 10 th year 99% of the Fund Value. From 11 th year onwards 100% of the fund value 9] What are the riders available? C.I., ADB & TDP riders are available. 10] What is the minimum & maximum Top-up allowed? In case of Regular Premium Minimum Rs. 3000/- Maximum 25% of total basic Regular Premium paid as on Top-up date. 11
(Top-up can be accepted only if all the premiums due till the date of the top-up payment have been paid) In case of Single Premium Minimum Rs.10000/- Maximum 25% of Single Premium. 12