Bank of India SUD Life New Sampoorna Loan Suraksha: You might be thinking about why should your family suffer from financial stress because of your loans. What if you suffered an accident and lost your source of income resulting in non-payment of an education loan? And what if the bank decided to auction your collateral in order to recover the loan? Sounds disturbing right? So here is the solution. Education loan insurance covers your loan repayment and in case of any unfortunate incident the insurance company will repay the loan and your family will not get into any kind of financial trouble.
The Bank of India SUD Life new Sampoorna Loan Surksha is one of the most preferred policies for your education loan insurance. In this blog, we will discuss all the major features of Bank of India SUD Life’s new Sampoorna Loan Surksha policy.
Table of contents
Salient Features of BOI SUD Education Loan Insurance
The Bank of India SUD Life New Sampoorna Loan Suraksha is a Non-Linked (does not invest in the market) and Non-Participating (doesn’t earn any bonus) single premium group credit life insurance product. This plan is exclusively designed to cover Education Loan, Personal and Other Loans. You will get coverage for the outstanding loan amount in case of death, disability, or critical illness. Let’s understand some of the major benefits of the Bank of India SUD Life New Sampoorna Loan Surksha policy.
1. Protection Against all Types of Loan Liability
BOI SUD education loan insurance covers all types of loan liability such as original repayment amount, accrued interest, charges and penalties etc. For example, during the moratorium period, the bank charged simple interest but you haven’t paid anything. During this period some unfortunate incident (death or disability) happened and insurance was claimed. The insurance company will pay the entire outstanding subject to the sum assured.
2. Affordable Low-Cost Loan Insurance Plan
Bank of India SUD education loan insurance is an affordable low-cost insurance policy. It offers discounts as well on the premium in joint policies. You will have to pay a maximum of 1-2% of the total loan amount as a premium for your policy. However, this may differ depending on the category of the policy and the sum assured. In a joint cover plan, you will also get a discount of 5% on the premium amount.
Also Read: Want to compare the plans with other banks? Check this blog on SBI Rin Raksha Loan Insurance
3. Choose between Level Cover and Reducing Cover
BOI SUD education loan insurance offers you a wide range of schemes for insurance policies. You can select your plan and customise it based on your requirements. If you select a level cover plan then you or your family will get the lump sum amount stated at the time of inception of the policy. In case of reducing cover, the terms of the policy decrease over the period. Usually, the reduced cover plan comes with a low premium amount as compared to the level cover plan.
4. Income Tax benefits
You will also get income tax benefits for the premium paid towards the education loan insurance. It will be eligible for deduction under sections 80(C) & 10(D)* of the Income Tax Act. However, tax laws are revised by the government after a certain period. Always consult a tax lawyer or financial advisor for all your queries. As far as the existing tax laws are concerned, you can claim a deduction for any premium paid by you for your loan insurance.
Bank of India SUD Life new Sampoorn Loan Suraksha: Types of Policies
The policy will cover cases of death, critical illness, temporary or permanent disability etc. If claimed, the policy will automatically terminate after payment. Check the details below:
| Plan | Benefits |
| Life Cover | Reducing Cover: The Sum Assured will be as specified in the cover schedule of the certificate of Insurance. Level Cover: You will get the initial Sum Assured opted at the inception of the policy. |
| Life Cover Plus Accelerated Critical Illness | Reducing Cover: The policy can be claimed on diagnosis with critical illness and the amount will be as specified in the cover schedule. Level Cover: Claim can be made on Diagnosis with critical illness and the Initial Sum Assured on Critical Illness opted at the inception of the policy will be paid. |
| Life Cover Plus Accelerated Accidental Total & Permanent Disability | Reducing Cover: Can be claimed in the event of permanent disability due to an accident. The claim amount will be as specified in the cover schedule. Level Cover: Can be claimed in case of permanent disability due to an accident and the claim amount will be the initial sum assured. |
| Life Cover Plus Accidental Death Benefit | Reducing Cover: The Company will pay an additional benefit equal to the outstanding cover amount as per the cover schedule. Level Cover: An additional benefit amount is paid which will be equal to the Initial Sum Assured. |
| Life Cover Plus Accelerated Accidental Total & Permanent Disability plus Accidental Death Benefit | Reducing Cover: Can be claimed in case of permanent disability due to accident and the amount as specified in the cover schedule will be paid. Level Cover: This can be claimed in case of permanent disability due to an accident and the Initial Sum Assured will be paid. |
Also Read: Is your credit score low or not generated yet? Check this blog on Education Loan to Study Abroad with Low CIBIL Score
Bank Of India SUD Loan Insurance Claim
You must be thinking about who will claim and receive the insurance amount after your death or disability. Here is the answer. In case of death, the benefit to the extent of the loan outstanding at the beginning of the policy month during which the death occurs will be paid to the lender (from which you took the loan). The balance amount (if any) will be paid to the nominee/beneficiary of the insured member.
- If your lender doesn’t fall under RBI-regulated entities, the death benefit will be paid directly to the nominee.
- Regulated Entities means the RBI-regulated Scheduled Bank, NBFCs with Certificate of Registration, National Minority Development Finance Corporation (NMDFC) and its state channelizing agency etc.
- This policy doesn’t provide any maturity benefit. This means that no amount will be paid as a return if the policy matured and it was not claimed in the due period.
FAQs
If you have taken a joint insurance policy then it can be claimed. In a joint cover category, the insurance is valid in case of the death of either of the applicants.
It’s not compulsory to take an education loan that too from the same lender. You can compare the plans of different companies and then make a decision.
Yes. You can take insurance for your loan from the Bank of India-SUD irrespective of the lender.
This was all about the Bank of India SUD Life New Sampoorna Loan Suraksha. Always buy the policy from the official website or visit the nearest branch.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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