Struck with SBI Life – Shubh Nivesh

POSTED BY siddharth karthik ON October 3, 2012 3:50 pm COMMENTS (6)

Hi, I am Karthik, an IT professional who misled by an SBI agent, bought a SBI Life – Shubh Nivesh endowment plan for a term of 10 years paying monthly premium of 3.5K (40K/ annum). My need was to make an investment for future which also exempts income tax. I was totally ignorant about endowment plan that while buying this policy, the agent promised me 10% interest. Even though my need was for only long term investment and not life cover (since I already have a term insurance cover) I invested in this policy and paid the premium for a almost a year i.e. 40,000.  Now I am thinking of  

1.Whether to leave the policy without paying further,

2.Making it paid up and leave so that I’ll at least get some amount after 10 year maturity or

3.Continue with the policy as I have already paid around 40K.


Please find below the policy details and suggest me a better option

Policy details:

Yearly premium: 42600

Sum assured: 360000 (after 10 years)

Bonus as on date (after one year) : 10000 (after one year)

As per the current bonus after 10 years I’ll be getting : SA + Bonus : 360000 + 100000 (for 10 years) = 460000


6 replies on this article “Struck with SBI Life – Shubh Nivesh”

  1. Rocky says:

    @siddharth karthik : What did u do after that ???
    I am also stuck like this

  2. Deepak R khemani says:

    Life cover will not continue if policy is paid up, only paid up value will be payable,Please check with SBI life before you take a final call

  3. siddharth karthik says:


    Added to the above question, also whether my life cover will continue once the policy i s paid up after ?

  4. Biswa Singh says:

    Don’t worry maximum people do this mistake including me. As you have paid just only for one year i think you will not get anything if you surrender it now as the locking period is generally 3 years (just check with the SBI on it). As you are not going to get anything just make it paid up and you will get he amount after maturity.

    1. siddharth karthik says:


      Thanks for your time.

      You are right, we can surrender the policy after the 3rd policy year. The guaranteed surrender value will be equivalent to 30% of all premiums paid less the first years’ premium. So In my case what will be amount, I am confused with the amount after surrendering the policy ? (Is it 30% of 2*42600 (annual premium) – 42600 (first yr premium), it’s 38340-42600, its negative !!). Please regret my ignorance.

      1. Biswa Singh says:

        Just check with the bank to know the exact amount. But i think if you pay for 3 years and then surrender then the return amount will be less than a single primimum amount i.e. 42,600. Now if you are going to get less than 42,600 after paying another 2 x 42,600 then i dont think it makes any sesnse to pay further 2 primimum and then surrender. So in your case surrender is the only option and you wil get the primimum + bonus accrued at maturity. I think you will get the cover but equivalent to the first primimum paid. Please check with the bank on this.

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