SBI Life- Group Micro Shield - SP

Death Benefit:

In the unfortunate event of death of the covered member or first death of the any one of the members covered in case of Joint Life policy, during the term of the cover the death benefit will get paid out in lump sum. In case of simultaneous death of both members in a Joint life policy only one Sum Assured will be payable.
For credit linked/lender-borrower relationship the Basic Sum Assured should not be more than the outstanding loan amount at the inception of the policy for a group member.
Level Cover: Basic Sum Assured on death will be paid out and cover will cease.
Reducing Cover: Sum Assured on death which is equal to the Sum Assured as per the loan cover schedule in the Certificate of Insurance, provided at the inception of cover, as on the date of death of the covered member, as per the Loan Cover Schedule will be paid irrespective of the actual loan outstanding and cover will cease.
In case of Joint Life, post payout of death benefit (on the first death) the cover will terminate for the surviving member.
In case of Lender - Borrower schemes, in the event of the Member's / Employee's death under eligible entities*, the outstanding loan amount, shall be payable to the Master Policyholder subject to prior authorization from the group Member at inception, out of the total Death Benefit and balance, if any shall be payable to the nominee / beneficiary. In absence of authorization, the death benefit amount shall be payable to the Nominee or Beneficiary.Where the life insured is a minor, the policy automatically vests on the life of the life insured once he / she attains majority.
Eligible entities* includes the following entities :(i) Reserve Bank of India (RBI) regulated scheduled commercial banks (including Cooperative Banks), (ii) non-banking financial companies (NBFCs) having certificate of registration from Reserve Bank of India, (iii) national housing board (NHB) regulated housing finance companies, (iv) national minority development finance corporation (NMDFC) and its state channelizing agencies, (v) small finance banks regulated by Reserve Bank of India, (vi) mutually aided cooperative societies formed and registered under the applicable State Act concerning such societies, (vii) microfinance companies registered under Section 8 of the Companies Act, 2013 or any other financial institution.

Maturity Benefit:

At maturity, no benefit is payable under this plan.

Surrender Benefit:

The Member Policy will acquire Surrender value and can be surrendered any time during the policy term. The Surrender Value is equal to the Unexpired Risk Premium and is as follows:

• Level Cover: (70% x Single Premium paid) x [Unexpired term (in months) / Total term (in months)]
• Reducing Cover: (70% x Single Premium paid) x [Unexpired term (in months) /Total term (in months)] x [Outstanding loan amount/ Initial loan amount]

Unexpired Term = Total policy term in months less policy months as on date of surrender.
On Surrender, all benefits and the member(s) cover will be terminated. The surrender value will be paid out as a lump sum benefit.
In case the Master Policyholder surrenders the Policy, for policies where the Members have paid the premium, the member shall have the option to continue their cover till the end of their respective Policy Term. The members who do not want to continue with the cover, the Surrender value shall be payable to them and the cover will terminate.

Joint Life coverage:

• Joint Life cover is available only under Lender-borrower groups
• It is available for both Level cover and Reducing cover options
• Two individuals can be covered if they are spouses, siblings or close blood relations like parents, child, etc or business partners. Substitution of lives would not be allowed
• Each of the borrowers will be insured for the entire outstanding loan amount – same Sum Assured and for the same Policy Term. In case of death of any one of the borrowers, the death benefit is payable and the cover for the surviving borrower would be terminated.

Grace Period:

Not Applicable
In a scenario where the due premium has been paid by the insured member to the master policyholder and an acknowledgement or receipt for the premium is being received by the insured member, but the premium has not been remitted by the master policyholder to the insurer within the grace period. If a claim occurs subsequently, the same shall be honored, provided the claim is otherwise admissible and payable.
However, this will be subject to submission of relevant documents by the master policyholder, proving that the due premiums have been paid by the insured member to the master policyholder. The claim amount would be paid only after remittance of due premium to the insurer.

Revival Facility:

Not Applicable

• Product Brochure
• Product Guide
• Certificate of Insurance
• Master policy document