Shubh Nivesh - Where is the labh?

SBI Life has launched its new product - SBI Life Shubh Nivesh. It is a traditional endowment plan with an option of a whole life cover. It is designed to meet the following needs of the risk-averse investor:

• Wealth Creation
• Savings
• Protection
• Income needs

The plan provides flexibility with respect to cash flows to the investors as there is a

• Lump sum payment at maturity
• Regular income for a chosen period - deferred maturity payment options (depending upon your needs)

SBI Life's Shubh Nivesh has the following two options for investors:

ENDOWMENT ASSURANCE	*WHOLE LIFE ENDOWMENT
The sum assured with all accrued bonuses will be paid on death during the endowment term	The sum assured with all accrued bonuses till the end of the endowment term will be paid to the policyholder
OR	AND
On survival, till the end of the endowment term	An amount equal to the basic sum assured will be paid on the life assured attaining 100 years of age or on the death of the life assured, if earlier.

* Investors will have to opt for the whole life endowment option at the proposal stage itself
AT A GLANCE

	Minimum Years	Maximum Years
Entry Age	18 years	60 years
Maturity Age	23 years	65 years
Policy Term	5 years	30 years
Sum Assured	Rs.75,000	No limit

TAX BENEFITS:

The plan entitles the investors to a tax benefit u/s. 80C and u/s. 10(10D), of the Income-tax Act, 1961.

Though the benefits offered by this plan are attractive, the premium paid by investors will be higher than that of a pure term insurance plan. The primary disadvantage of the whole life cover is that the internal rate of return may not be competitive as the other savings alternatives.