SBI money back policy - truth requested

Employee of sbi life insurance called me up and gave following information for sbi money back policy(15 yr max term)

For sum assured of 3 lakhs, 30 K premium, with total 115% of bonus on 15th year (10, 15,20,45 on 3rd,6th,9th and 15th yr respectively) plus 10% "guaranteed" cumulative interest for amount invested.

Also this can be surrendered on 4th year with benefit of 1.5 lakhs (1.2 L over investment of 90K for 3 years and 30K bonus)

However the brochure doesn't guarantee 10%, it doesnt speak anything except "bonus". Also it says policy can be surrendered on 4th year but appends it *conditions apply.

Any expert can throw light on it plz? is this valid and truthful information or fraudulent sales/marketing trick of trapping money

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However the brochure doesn't guarantee 10%, it doesnt speak anything except "bonus". Also it says policy can be surrendered on 4th year but appends it *conditions apply.

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It is IRDA instructions that you can show returns in 6% and 10% example to the proposer. Bonus is declared on the basis of insurance company performance.

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Any expert can throw light on it plz? is this valid and truthful information or fraudulent sales/marketing trick of trapping money

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Please tell me the name of the product to comments on it.

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Originally Posted by v.r.s.nathan

It is IRDA instructions that you can show returns in 6% and 10% example to the proposer. Bonus is declared on the basis of insurance company performance.

Please tell me the name of the product to comments on it.

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Hi

its sbi money back option 2 plan. according to the caller(sbi life employee) for sum assured of 3 lakhs, 30 K premium, with total 115% of bonus on 15th year (10, 15,20,45 on 3rd,6th,9th and 15th yr respectively) plus 10% "guaranteed" cumulative interest for amount invested. On 4th year, you can surrender policy, and for 30k annual premium, 90K (amount paid) + 30K bonus + 30K (10% cumulative interest) would be paid back.

Also this can be surrendered on 4th year with benefit of 1.5 lakhs (1.2 L ovefr investment of 90K for 3 years and 30K bonus)

As per SBI Life Product Brochure - http://www.sbilife.co.in/sbilife/doc...money_back.pdf
Vested Bonus is not Guaranteed.
If we go by your example - Premium Rs 30000/- per year. Option 2 / 15 years
Guaranteed Survival Benefit payable - After every 3 years on the term following will be paid -
3 years - 10% of Sum Insured (Rs. 30000)
6 years - 15% of Sum Insured (Rs. 45000)
9 years - 20% of Sum Insured (Rs. 60000)
12 years - 25% of Sum Insured (Rs. 75000)
15 yrears - 45% of Sum Insured ( Rs. 135000)

I could not get the word surrender in the Product Brochure.

Instead of this you can go for SBI Saral Shield - http://www.sbilife.co.in/sbilife/ima...d_brochure.pdf

For Sum Insured of 750,000; Premium = Rs. 15402 (Age 30)
Remaining amount (Rs15000) you can invest in ELSS MF (you will also get Income tax rebate) and as 10% return (compounded annually) you will get - Rs. 54615/-. Which is better than 30000/-.