Test Preparation

SBI RiNn Raksha Insurance Policy

SBI RiNn Raksha Insurance Policy

On this Page:

GyanDhan recommends opting SBI RiNn Raksha if you are taking an abroad education loan. Read here to know eligibility, benefits, features of SBI life RiNn Raksha.

GyanDhan
Madhuwrita Nandi
Updated on:  12 Sep 2023  | Reviewed By: 
Aman 
| 39.6K | 9  min read

Education loan insurance cover safeguards your family from the burden of paying off the student loan in case a fatal eventuality occurs. Instead of your co-applicant repaying the loan, the insurer gives the entire outstanding amount. In short, an insurance policy creates a win-win situation for you and the lender because it reduces the risk to both.

One such student loan insurance policy is SBI Rinn Raksha, an optional loan insurance policy when you take SBI’s education loan for studying abroad. And that’s what we talk about here. 


 

Check Your Education Loan Eligibility

Sprinkles

What is SBI RiNn Raksha Insurance?

SBI RiNn Raksha Insurance is a term insurance plan offered by the State Bank of India (SBI), one of India's most reputable and trusted banks. When a student secures an SBI education loan for studying abroad and opts for an insurance policy, they are required to pay a single premium to activate the coverage. If an unfortunate incident takes place and the loan applicant or co-applicant passes away, the insurance policy will settle the outstanding education loan amount. 

The insurance cover safeguards your family from the burden of paying off the student loan in case a fatal eventuality occurs. Instead of your co-applicant repaying the loan, the insurer gives the entire outstanding amount. In short, an insurance policy creates a win-win situation for you and the lender because it reduces the risk to both.

Sprinkles

How to buy the RiNn Raksha insurance policy?

You can buy the policy if you are above 16 years of age. The coverage scheme is especially recommended if you take an SBI education loan for studies abroad because you get a better interest rate and security for your family.Explore Scholarships to Study Abroad

Sprinkles

Who is eligible for SBI RiNn Raksha Policy?

Anyone who is of 16 years or above. The RiNn Raksha policy is especially recommended if you take an SBI education loan for studies abroad because you get attractive interest rates and security for your family.

Age at entry Premium maturity tenure

Minimum 16 years

Premium payment term - 5 years

Maximum 70 years

Premium payment term - 5 years

 

Learn about your options for funding higher education with SBI. Watch our video to see how you can easily secure an education loan


Sprinkles

Key features of SBI RiNn Raksha insurance policy

SBI RiNn Rakha plan not only covers the life of the loan applicant, i.e., the student, but also up to two co-borrowers. Here are some key features:

 

Let us know these features in detail:

  • list items Sum assured: It is the amount that a family receives from an insurance policy. This amount is decided when the policy starts. The minimum sum assured is INR 10,000, and there is no limit to the maximum amount. In the case of an education loan, the sum that SBI Rinn Raksha insures is the outstanding loan amount. 
  • list items Affordable premiums: RiNn raksha premium amount is the amount you have to pay to activate SBI Rinn Raksha coverage. This plan provides extensive coverage at pocket-friendly premiums, making it accessible to a wide range of individuals. The precise amount is based upon several factors. You can pay the premium monthly, quarterly, half-yearly, or yearly. You can choose two types of premium payment terms, Single or Level. Within Level Premium, you have two more options, either a 5-year payment mode or 10 years.
  •  

    One should remember that SBI’s Global Ed-vantage loans have a fixed rate of interest. For all loans that have a floating rate of interest like education loans, SBI RiNn Raksha offers two more options:

  • list items Gold - You can choose this option if you opt for a 5-year policy term. In case of an eventuality, SBI pays “the entire outstanding amount at the time of death as per the floating rate of interest offered by you irrespective of the loan schedule given in the Certificate of Insurance” as long as the full premium is paid.
  • list items Platinum - You can select this option if you opt for a 5-year policy term or above it. Here SBI pays whichever is higher of the two - “either the outstanding loan as per the floating interest rate offered or the outstanding loan amount as per the interest rate fixed at the inception of the cover.”
  •  

    Policy term Policy payment mode

    2 years - 30 years

    Single-premium

    8 years - 30 years

    Premium payment term - 5 years

    15 years - 30 years

    Premium payment term - 10 years

     

  • list items Moratorium period - SBI Rinn Raksha insurance policy plan offers a minimum moratorium of 3 months and a maximum of 72 months.
  • list items Duration of policy: The minimum term period of the SBI Life Rinn Raksha insurance policy is 2 years, and the maximum is 30 years.
  • list items Exemptions: The RiNn Raksha insurance policy includes a suicide exclusion clause which states that whether the insured individual, sane or insane, commits suicide within the first year of coverage, the full death benefit mentioned in the benefit payable section will not be paid.
  •  

    Get Guaranteed Best Loan with GyanDhan
    Find a Better Loan Offer Elsewhere & We Will Cover the Difference in Interest
    Sprinkles

    Benefits of SBI RiNn Raksha insurance policy

    SBI RiNn Raksha has several benefits of its own, like:

    1. Financial security
    2. Loan protection
    3. Tax benefits
    4. Low interest rates
    5. Flexible coverage 
    6. Free look period

     

    But it is important to note that the exact benefits and terms of the SBI RiNn Raksha insurance policy may vary, and it's advisable to carefully review the policy documents to understand the specific details and conditions associated with the policy.

  • list items Financial security: The primary benefit of SBI RiNn Raksha Insurance is the peace of mind it offers. Knowing that your family will be financially secure even in your absence can provide immense comfort and reassurance.
  • list items Loan protection: If you have outstanding loans, such as a home loan or a car loan, SBI RiNn Raksha Insurance can help protect your family from the burden of repaying those loans
  • list items Tax benefits: SBI RiNn Raksha insurance policy offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961 where you can avail tax deductions on the premium paid.
  • list items Lower interest rates: You get an additional 0.50% discount on your education loan rate of interest.
  • list items Flexible coverage: The RiNn Raksha policy is a customizable plan that provides coverage for your outstanding debts in the event of your demise. Additionally, there are options available to increase the coverage up to 120% of the loan amount at the beginning of the policy. 
  • list items Free look period: The loan insurance plan offers a free look period of 15 days, starting from the date of receiving the policy document. During this period, you have the opportunity to review the policy terms and conditions. If you decide to cancel the policy within this timeframe, you will receive a refund. However, the refund amount will be adjusted for proportionate risk charges, expenses incurred on medical examination, and any applicable stamp duty charges.
  •  

    There is no doubt that the SBI Life - RiNn Raksha Policy brings with it a number of indispensable advantages when you are taking an education loan. So, if you’ve made the right decision to apply for an SBI loan, here’s how GyanDhan helps you:

  • list items We simplify the entire process by making most of it online. You apply for the loan through our site. Then we send you the list of documents required specifically for your profile.
  • list items We make sure that you don’t have to run from pillar to post to submit and verify the required documents. After you have gathered them, our representative picks them up from your doorstep and submits them on your behalf to the SBI branch.
  • list items We even take care of any bottlenecks that happen during loan processing and approval. For example, we expedite the process of submitting any additional documents that the bank may require. Through systematic follow-up, we also reduce the turnaround time for evaluating the property.
  •  

    With GyanDhan, the only effort you put is to visit SBI just once - for signature and verification!

    Wondering how to apply for an education loan to get all the SBI Rinn Raksha benefits? All it takes is a callback to GyanDhan!

    Read more about:

  • list items Education loan insurance: All you need to know
  • list items Sbi education loan for abroad studies
  • list items Types of collateral security accepted for abroad education loan
  • list items Education loan without parental income
  • list items Study abroad scholarships for Indian students
  • list items Education loan by the Indian government
  • list items Documents required for education loan
  • list items Sbi education loan disbursement process
  • Sprinkles

    Frequently asked questions

    What are the key features of SBI RiNn Raksha Insurance Policy?

    The key features of SBI's RiNn Raksha Insurance Policy include

  • list items Affordable premiums with a choice of single premium or regular premium payment options.
  • list items Flexible policy term options ranging from 5 to 30 years.
  • list items Coverage up to age 70 or 75 years, depending on the chosen policy term.
  • list items Life cover with a sum assured of your choice, subject to a minimum amount.
  • list items Option to add accidental death benefit rider for additional coverage against accidental death.
  • Who is eligible to apply for SBI RiNn Raksha Insurance Policy?

    Any individual between the ages of 18 and 60 years can apply for SBI's RiNn Raksha Insurance Policy, subject to meeting the underwriting guidelines of the insurance provider.

    How much coverage can I get with SBI RiNn Raksha Insurance Policy?

    The coverage amount, known as the sum assured, is chosen by the policyholder at the time of purchasing the policy. The minimum sum assured may vary based on the insurance provider's guidelines.

    What is the premium payment frequency for SBI RiNn Raksha Insurance Policy?

    SBI's RiNn Raksha Insurance Policy provides two premium payment options: single premium and regular premium payment. The regular premium payment frequency can be yearly, half-yearly, quarterly, or monthly, depending on your convenience.

    Can I add riders to SBI RiNn Raksha Insurance Policy?

    Yes, SBI's RiNn Raksha Insurance Policy allows you to enhance your coverage by adding an accidental death benefit rider. This rider provides additional coverage in case of death due to an accident.

    Are there any SBI Life RiNn Raksha tax benefits available?

    Yes, you may be eligible for tax benefits on the premium paid and benefits received under SBI's RiNn Raksha Insurance Policy, as per the prevailing tax laws. However, it is advisable to consult a tax advisor or financial expert for accurate information.

    Check Your Education Loan Eligibility


    Sprinkles

    Have More Questions on This Topic?

    Ask from a community of 10K+ peers, alumni and experts