If you have made up your mind to buy SBI life insurance, know that you are on the right track, first because this is the most comprehensive form of coverage you can expect to get and, two, considering the reputation the bank has and that it has built over the time gives you the confidence you need to make a long-term commitment.
Now, that you know what you want let us get to the next step; which is to understand the scope of SBI sum assured calculation process. Note that the final amount will depend on factors like the extent of coverage, time period, age, income, type of profession and so on.
Sum assured, in layman’s terms is the coverage you pay for. In other words, when the policy matures or the nominee of the plan is due for payment, the sum assured is the basic payment plus bonus (if any) that the bank will give to the insured or the nominee. So, when you think I need ‘x’ coverage, that is the sum assured.
This figure in any life insurance plan even in the SBI life insurance plan is arrived by taking the following into consideration.
Calculation:
First you have to jot down what your monthly/quarterly or annual expenses are. These are the expenses that your family has to pay even after you are gone. Careful examination of your bank statement or your expense statement will help you calculate this figure. Once you have all the monetary commitments from your side lined up, the next is to consider the assets you own. Make sure these are the assets that are performing assets which mean that you can use them as a probable source of income in the future.
After you have the payments and the asset details ready, you have to calculate the liquid funds available which is the next step in SBI sum assured calculation. To this add, a buffer amount as this will give you a fair idea as to how much you need to pay to cover future expenses. The idea is to give your family the support they need when you are gone.
Once you have the cash flow amount ready, you can get the sum assured amount by multiplying the cash flow with 100 and then dividing it by the current interest rate in the market.
The figure you get is what your family needs to have in order to lead a comfortable life.
The difference:
Now, let us pay attention to what guaranteed return on SBI life insurance means. Sum assured is the coverage the policyholder wishes to have and this is the amount that the bank commits to pay at the end of the policy period or when the person insured passes away.
Guaranteed returns on SBI life insurance is different because the amount is determined by the specific plan chosen by the insurer. It is different for whole life insurance, endowment plans, ULIPS and so on. This amount is set by the bank and based on this number; the prospective insurer makes a selection.
Life Insurance Policy Information In India 