SBI Life Swadhan

Objective This term insurance policy can return premiums on survival and offers the option to surrender the policy too.
What does it do? This term plan pays sum assured to the nominee in case of untimely death of the life assured. It refunds a part of premiums paid if policyholder outlives the policy term. Survival benefit depends on the policy term. If policy term is 5 years, survival benefit would be 50 per cent of basic premiums. Similarly, the benefit increases to 60 per cent of basic premiums for a 6 years policy term and 100 per cent for a 10 year term.
Policyholder can surrender the policy in case of any emergency. The surrender benefit is calculated on the basis of a prestated formula.
If policyholder is not able to pay the premium, the policy will not lapse but continues for a reduced paid-up value, provided first three year premiums have been regularly paid. In case of demise or surrender of the policy, the reduced paid up value is paid to the nominee.
Pros Policyholder gets a 2 per cent premium rebate for annual premium payment and 1 per cent for semi-annual premium payment.
Women enjoy a 5 per cent over and above the premium payment mode rebate.
The policy does not lapse but continues with a paid-up value if policyholder fails to pay premiums.
Policy gives survival and surrender benefit.
Premiums paid under this policy qualify for a tax benefit under Section 80C.
Cons This plan cannot be taken for more than 10 years of policy term.
There are no rider options for additional protection.
There is no option to make monthly premium payment.
Suited for This policy can be taken by those looking for shorter tenure of insurance.
Our View Surrender benefit, survival benefit and return of premium option make this policy expensive as compared to pure term plans. The policy has kept its cost high to compensate for these benefits. It offers a maximum term of 10 years only which is another drawback.