Is SBI Shubh Nivesh Plan a negative interest plan??!!

POSTED BY Rakesh ranjan ON January 22, 2013 2:09 pm COMMENTS (21)

I took an SBI Shubh Nivesh Plan in Oct-2010. I know I have already committed a huge mistake (after reading the questions and responses in this forum). SBI agents/DSA agents tricked me into taking this plan. However, I am not sure on what should be my action now. My premium is Rs 65,000 (and has a bonus of Rs 7,500 with every premium). Policy term is 5 years. And the Sum assured shows: Rs 2,64,000. My questions is:

In five years I would have paid a total premium of Rs 65,000*5 = 3,90,000. Does it mean that on maturity I will be getting only sum assured + bonus = Rs 2,94,000 only!! Isn’t it then a Negative interest plan!! If this is true how could IRDA allow such a plan to function.

What should I do? I was initially promised a good sum of money etc etc, I now know all those claims were false. At worst, I had imagined a 5-6% return, with a guarantee of my premiums. Now I am totally disillusioned! I already have sufficient term plan cover (Rs 1 Crore).

Pls help!

21 replies on this article “Is SBI Shubh Nivesh Plan a negative interest plan??!!”


    My SA 500000, policy term 11 yrs, taken the policy in 2014, when I was 32. Annual premium 49388.
    I have been told that after paying 11 premium, from 12th year, I will be getting around 49000+ every year till my death or 100 yrs. Is that true

    1. Jagoinvestor says:

      Does the policy document says that?

  2. Rajshekar says:

    Hi Manish,
    I had bought a SBI Life – Shubh Nivesh Whole Life Plan in April 2013 with an yearly premium of Rs. 36,280. The sum assured is Rs 2,90,000.
    The tenure of this plan is 10 years, so I will have paid a total premium of Rs. 3,62,800 by the end of the plan(year 2023).
    When i repeatedly asked the SBI for approx total amount at the end of 10 years, they failed to provide me the information, however I am pretty sure that this being a traditional investment policy, I will not get much benefit
    When I called up the customer case today to check how much I will get now on surrendering the policy, they informed that till date I have paid an amount of Rs. 1,63,869 as premium and if I surrender, I will get only Rs. 1,07, 250 ( a loss of over 55,000).
    Do you have any idea-
    – how much will i get if I continue to invest in this policy for 6 more years?
    – Is this policy worth investing for 10 long years?
    – Is it advisable to surrender this policy now?

    Please suggest, I am in a fix now

    1. Yes, this is a traditional plan and a terrible one (Sorry) .

      You will not get much benefit either by continuing or by surrendering. So in short , Please get out of this product asap and make sure you invest the future amount in proper investment vehicles (even FD is ok, but mutual funds would be better)


      1. Rajshekar says:

        Hello Manish,
        An expected answer, and thanks for your suggestion.
        I will apply for the surrender of this policy soon.
        Could you please suggest a good Tax-saving mutual fund that is good for the long term.

        1. Motilal tax saving fund is a good one ..

  3. Sweety says:

    hi Manish
    I have purchased sbi life subh nivesh endowment plan in march 2014 with sum assured 351000 for term of 7 years . My premium for this is Rs. 4853 p.m. +taxes that means I have submitted 180000/- approx in 3 years. If i ma going to surrender it then what will be the value of it.

    1. Hi Sweety

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information


  4. Babu says:

    I have this plan 25000 pa for 7
    year so what will be its maturity value after 7 years when generally i will deposited 175000

    1. Hi Babu

      I am not clear on what is your question. Please repeat it with more clarity


  5. himanshu says:

    hi Rakesh , What did u finally do with it???
    kindly enlighten as me also in same boat as yours….

  6. b says:

    I have purchased this plan 25000 pa in Feb 2015 . but it is not right because we can’t surrender it before 3 year to keep continued or according to customer care if i deposit regular 3 premium then surrender i will get 30% less of total deposits so
    What is different between today and 3 year later if i forget it today.

    1. Thanks for your comment b

  7. stuti says:

    Hi!I have a purchased a SBI Life Insurance Shubh Nivesh Policy of 25,000 annual premium for the period of 5 yrs. I have paid all premiums. The agent that has described the policy has told me that the sum assured will be Rs. 99,000and atleast 3.5% bonus on capital value is mini. guaranteed. But in policy documents sum assured mentioned is only 99,000 and the bonus. Tell me the truth of this policy. Is it a negative policy? Should i continue or surrender the policy. What could be the benefits if I continued with the policy in terms of financial gains.
    How can i calculate my returns?

    1. Anything orally mentioned is not valid, what ever is written in the policy document will be applicable

  8. Madhava says:

    Dear Sir, I am 49 Years old working in a private company, looking of a pension plan for my retirement life. Whether SBI Shubh Nivesh Plan is suggestible or if any other policy, Please advice.

  9. Arindam Chakraborty says:

    Dear Rakesh,

    I think you are referring to the Projected Investment Return in the Benefit illustration table which has projection against 6% and 10%.

    I just checked with my SBI Investment agent and he has clarified the following through email:

    “Projected Return shown @ 6% and 10% shown in the Benefit Illustrator indicates the return earned by the Insurance Company on the investible portion of the premium after setting aside amounts towards mortality and expenses.”


    “The bonus declared in Shubh Nivesh is a Simple Reversionary Bonus which would be declared as a percentage of Sum Assured.”

    So, to me it appears that both a quite different. As an investor, we are supposed to look at the bonus % on the sum assured.
    It is also very clearly stated in the Terms Description at the beginning of the policy document that Bonus is calculated as a percentage of sum assured.

    I hope this helps.


  10. Rakesh ranjan says:

    Dear Pattu,

    I did not take the rider options. Bonus was guaranteed and it also reflects in my ‘bonus acrrued’ section in SBI site.
    Let us assume that I surrender this policy now, this means I will get a sum = 30%*130,000 (2 premiums) + 15,000 bonus = Rs 54,000, against a payment of Rs 194,000. Isn’t that a considerable loss?
    Plus could you help me understand what I will actually get at the end of 5 years?

    Thanks in advance.

    1. Dear Rakesh,

      Are you sure of the sum assured? When I entered your numbers in the SBI premium calculator I get a premium of 59100
      Also I think the bonus rate is not guaranteed what you must have seen is a benefit illustration of 6% or 10% bonus

      Assuming you will get 7500 bonus for arguments sake you will get upon maturity

      sum assured + 7500*5
      You can see the illustration yourself

      For 6% bonus there is a loss!

      What you should do now is to avoid further loss. So surrender the policy and move on. Don’t worry about this loss. Everybody makes mistake.

      Invest the surrender amt and further premiums in better investments

  11. Dear rakesh,

    Was bonus of Rs 7,500 with every premium guaranteed. That is mentioned in policy or by agent? Annual bonuses will be added up and paid on maturity along with sum assured.

    Did you take the three riders available? If yes that explains why the premium is so high.
    So if you want to calculate interest (which will be 5-6%) the rider premium will have to subtracted.

    Since you have paid three premiums (oct 10, 11, 12) surrender the policy. The surrender value is

    30% if (all premums paid – first year premium – rider premiums) + bonuses

    Invest the both the premium and surrender values in better investments according to your goals


  12. Dear Rakesh, why are you continuing yourself in this plan? In my personal opinion, surrender & invest else where.



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