Regarding SBI MAX GAIN and life insurance

POSTED BY Prakash Jena ON April 8, 2013 7:18 pm COMMENTS (17)

Hi Ashal ,

I have went for a SBI MAX Gain home loan in February2013.They force me to take SBI life insurance of 80,000 and which i need to pay for 5 years(16K each year) and i am paying interest also. But later they again deducted for SBI General insurance.

My loan account is below

Description SBI H L MAXGAIN AUG12
Book Balance -22,23,543.00 
Available Balance 6,71,457.00 
Limit 28,95,000.00 
Uncleared balance 0.00 
Drawing Power 28,95,000.00 
Currency INR
Rate of Interest (% p.a.) 9.95% 
Lien Amount 0.00 

and my SBI Life insurance acount

Limit 80,025.00 
Drawing Power 16,144.00 
Outstanding Amount 16,144.00 
Rate of Interest 9.95 
Currency INR
C.Y.YTD Interest 0.0
P.Y.YTD Interest 139.0

I am planning to cancel the SBI life insurance as I have LIC Jevan anand and also insurance in Company.  Please suggest what should I do ? should i cancel it or not?




17 replies on this article “Regarding SBI MAX GAIN and life insurance”

  1. Hrishikesh says:

    In MAXGAIN SURAKSHA what is outstanding balance and do we need to pay it manually or it get deducted automatically with EMI. I am confused

    1. Hi Hrishikesh

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


    2. mehak says:

      did you figure this out?

  2. Prakash Jena says:

    Thank you Ashal for your valuable suggestions.


  3. Dear Prakash, first of all cancel this policy immediately. In parallel purchase the term plan of your choice.



  4. Prakash Jena says:

    Hi Ashal,

    15days lock period is already gone as per SBI but i did not get any policy number so far.

    I had a talk with the manager of the branch where i have processed the loan and he told that if requested , then we will cancel it but u may not get the full amount i.e. 16K.

    Thats where my confusion came whether to cancel the life insurance or not.

  5. Dear Prakash, having an individual cover of 1Cr. Rs. is a good Idea. Regarding the surrendering of this loan linked policy, actually you should had informed the SBI people earlier. Still if 15 day free look period is not over yet, please submit this policy for surrender & in parallel apply for a new cover of 1Cr. Rs.



  6. Dear Pankaj, there are 4 things in your account statement.

    Drawing power
    Drawing limit
    Available balance
    Book balance

    Can you elaborate, what are these?



  7. Pankaj Kamboj says:

    Hi Ashal,

    I have gone through the earlier threads where you have suggested to deposit some amount in transaction account..Now my question here is–More the money(equivalent to available balance or more) deposited into transaction account, less is the interest rate…Am i correct? How does it work.can you pls guide me.

    Pankaj Kamboj

  8. Prakash Jena says:

    Hi Syamantak,

    When i came to know the fact that it Jevan anad will give very less return, i t was too late 🙁

    But now if i surrender, i will not get more than 40% of the investment which is around 50K( out of 1,25000). In this case i can not withdraw and not willing to continue.

    What should i do now?


  9. Prakash Jena says:

    Hi Ashal,

    Thank you for quick answer.

    For question my answer is …

    Jevan Anand ( which is 25K for 20 years) and my current insurance from my employer (I am not sure if it can make 30L to pay to SBI).

    But i am just thinking of taking a term insurance which will be for around 1cr and i might have to pay 10K instead of 16K to SBI Life insurance.

    I don’t have any other insurance policy except the company given one(which for all employee). I am little confused to go ahead with SBI or should I go with term insurance as suggested which will be give upto 1crore in case of death if i will pay around 10K every year.

    Please suggest.

    Thank you.


  10. Dear Prakash, I want a plain answer from you. if you die today, who ‘ll pay the loan of 30L Rs. back to SBI?

    Please answer.



    1. Pavan says:

      This is insane. All over the world people get home loans. Is only SBI mature enough to think on such lines. Or I shuld say, foolish enough 🙂

      anyways, just to answer your question – our home loan is always mortgage type. Thats why they keep original registry documents. Among the hundreds of sign that we do while taking loan, its clearly outlined that they can sell of our home if we are not able to pay loan (for any reason – bankrupt, DIE, etc.)

  11. Syamantak says:

    Its upto you now if you want to continue on it and finally end up with very low return. IMO you’d probably prefer to bear the pain of 1L than losing big money later. I think all gurus here would suggest that you book the loss and start fresh SIPs into a combination of Mutual Funds. If you can not afford taking risk, put the same amount in PPF for a safer and higher return (EEE too 🙂 ).

    A learning that probably would refrain you from fixing an appointment with any LIC agent here after.
    Good luck!

  12. Prakash Jena says:

    Hi Syamantak,

    Thanks for quick reply.

    I have only 4 years completed and the premium amount is around 25K. when i wanted to cancel then they told that this policy can not be canceled 🙁

    But here my question is should i cancel the SBI life insurance as i have to pay 80K and 16K each ear with interest.

  13. Syamantak says:

    how many years are past on Jeevan Aanand? Stop paying premium of Jeevan ** immediately and take a term policy depending on your insurance needs. If you have crossed more than half way in LIC policy then instead of surrender, think of converting it into a ‘paid up’ one

    With this you’d be left with some extra money in hand (LIC must have been draining a good chunk of money from your income). Part pay your Home Loan with the additional money that you are going to save!

    will wait for others comments on Max Gain.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.