SBI Life New Smart Samriddhi Plan
As we grow up and start to understand our responsibilities, the first thing we want to do is to protect and build a prosperous future for our dearer ones. This aim can be achieved through adequate insurance coverage, regular savings, and consistent returns. To fulfill this objective of your life, SBI Life Insurance Company has come up with an excellent plan, New Smart Samriddhi, that offers guaranteed additions that enables you to earn benefits for your loved ones. This is a non-participating, non-linked individual life insurance savings product. This plan promises to reward you with additional returns while you safeguard your family’s happiness. To know more about this policy, have a look at the following mentions.
Eligibility Criteria
| Parameters | Description |
| Age at entry | Minimum – 3 years, Maximum – 50 years |
| Minimum age at maturity | 65 years |
| Policy term | 12 years and 15 years |
| Premium payment term | 6 years for a policy term of 12 years 7 years for a policy term of 15 years |
| Premium frequency | Yearly and Monthly The monthly premium for monthly mode as a percentage of annualized premium is 8.50% of annualized premium. |
| Annualized premium (In multiples of Rs. 1000) | Minimum – Per policy Rs. 12000 Maximum – Per life limit Rs. 75000 (The maximum premium will be as per board approved underwriting policy) |
| Basic sum assured | Minimum – Rs. 63,500 (Based on Minimum Premium) Maximum- Rs. 5,73,000 (Based on Maximum Premium and it will be as per board approved underwriting policy) |
What Are The Benefits of SBI Life New Smart Samriddhi?
This plan has come up with a sack full of benefits and facilities that offers you and your family maximum protection as it helps to build a financial corpus. The following table gives you the details that this plan offers.
| Parameters | Details |
| Guaranteed Addition |
|
| Maturity Benefit | On survival of the life assured till the end of the policy term, Basic Sum Assured Plus Accrued Guaranteed Additions, as applicable, will be paid as maturity benefit. |
| Death Benefit | In the unfortunate event of death of the Life Assured at any time during the policy Term of an active policy, Sum Assured on Death along with accrued Guaranteed Additions, if any, will be payable to the Nominee or the beneficiary. Sum Assured on Death is higher than the Basic Sum Assured, or 10 times the Annualized Premium, or 105% of total premiums received up to the date of death. |
| Tax Benefit | With this plan, you can avail of tax benefits as per the prevailing norms under the Income Tax Act, of 1961. |
| Online Facility | Available |
| Grace Period | Monthly premiums -15 days Yearly premiums – 30 days |
| Free Look Period | For policies sourced through any channel mode other than Distance Marketing and electronic policies – 15 days For electronic policies and policies sourced through Distance Marketing – 30 days |
Key Highlights of SBI Life New Smart Samriddhi
Apart from the above benefits and facilities, this plan has come up with a bundle of advantages that have made it unique and popular among consumers. The followings are the mentions of these.
Paid-up Value:
The policy will acquire a paid-up value only if premiums have been paid for at least the first 2 full consecutive policy years. The Sum Assured payable on death or maturity of a paid-up policy will be reduced Sum Assured. This reduced Sum Assured will be called the Paid-up Sum Assured. Paid-up Sum Assured on death and maturity would be as per the following formulas:
Paid-up Sum Assured on Death = Sum assured on death X Number of premiums paid/Number of premiums originally payable.
Paid-up Sum Assured on Maturity = Basic sum assured X Number of premiums paid/Number of premiums originally payable.
Reduced Guaranteed Additions:
In the case of Paid-up policies, future guaranteed additions would continue to be accrued but on a proportionately reduced basis. The reduced guaranteed addition amount would be as per the following formula:
Reduced guaranteed addition = Guaranteed addition amount for in-force policy X Number of premiums paid/Number of premiums originally payable.
Surrender Value:
The policy will acquire Surrender Value only if premiums have been paid for at least the first 2 full consecutive policy years. On surrender, the higher of the Guaranteed Surrender Value (GSV) or Non-Guaranteed Special Surrender Value (SSV) will be paid. The Guaranteed Surrender Value (GSV) will be equal to GSV factors multiplied by the total premiums paid Plus the Surrender value of the accrued guaranteed additions. The surrender value of the accrued guaranteed additions is calculated by multiplying the accrued guaranteed additions with guaranteed additions surrender value factors.
Policy Loan:
To meet your financial emergencies, the company allows you to borrow against your policy. Loans will be available after the policy acquires surrender value. The policy loan will be limited to a maximum of 90% of the surrender value. The loan interest rate to be charged will be declared by the company from time to time.
Revival of the Policy:
A lapsed policy may be revived within 5 consecutive years from the date of the first unpaid premium and before the date of maturity, while the life assured is still alive, subject to satisfactory proof of insurability as required by the company from time to time and on payment of all overdue premiums along with interest. On revival, the policy will be eligible for future Guaranteed Additions. Also, the due Guaranteed Additions will be added to the policy. The interest will be charged at a rate declared by the company from time to time.
General Exclusions of SBI Life New Smart Samriddhi
Understanding a policy is not completed if you do not go through the exclusions of the policy thoroughly. Therefore, to offer you a comprehensive idea of the policy, and to avoid future complications, here are the exclusions of SBI Life New Smart Samriddhi Policy:
- Any kind of breach of law with criminal intent will be permanently excluded from the policy.
- In case of death due to suicide, within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, the nominee or beneficiary of the policyholder will be entitled to at least 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force. After paying the benefit as applicable, the policy will be terminated.
How Does SBI Life New Smart Samriddhi work?
Once you know the policy’s inclusions and exclusions, the next important thing to know is how this policy works. For this, here is an example.
Mr. Dutta, a 36-years old businessman, bought SBI Life New Smart Samriddhi Plan. Let us find out how much premium value he has to pay to avail of the benefits of this plan and how much he will receive as benefits.
| Parameters | Credentials |
| Age | 36 years |
| Premium frequency | Yearly |
| Policy term | 15 years |
| Premium payment term | 7 years |
| Payable Premium Amount | |
| First year | Yearly premium – Rs. 50000 Applicable taxes – Rs. 2250 Total premium – Rs. 52250 |
| Second year onwards | Yearly premium – Rs. 50000 Applicable taxes – Rs. 1126 Total premium – Rs. 51126 |
| Available Benefits | |
| Maturity benefits (At the end of the policy term) | Rs. 625000 |
| Sum assured during the policy term | Rs. 373000 |
Frequently Asked Questions
If the life assured is a minor, the date of commencement of the policy and the date of commencement of risk will be the same. In this case, the policy term should be appropriately chosen so as to ensure that life assured will be at least 18 years (last birthday) as of the maturity date.
You do not need to undergo a pre-policy medical check-up routine to purchase this policy.
The special surrender value would reflect the company’s actual experience and will be determined as per the proxy asset share/Gross Premium Reserve. The special surrender value will be arrived at by multiplying PUV on maturity with SSV factors. SSV methodology will be reviewed periodically based on the insurer’s views of the likely future financial/demographic circumstances and may change subject to prior approval from IRDAI.
No, this product does not participate in the profits of the company.
The GSV factors for various policy durations are given below:
| Premium payment term | As a percentage of the total premium paid | |
| Policy year | 6 years | 7 years |
| 1 | 0% | 0% |
| 2 | 30% | 30% |
| 3 | 35% | 35% |
| 4 | 50% | 50% |
| 5 | 50% | 50% |
| 6 | 50% | 50% |
| 7 | 50% | 50% |
| 8 | 60% | 56% |
| 9 | 70% | 62% |
| 10 | 80% | 68% |
| 11 | 90% | 74% |
| 12 | 90% | 79% |
| 13 | NA | 85% |
| 14 | NA | 90% |
| 15 | NA | 90% |
The company policy currently is based on the nominal interest rate per annum and is 150 basis points greater than the 10-year benchmark government security as on 1 April of each of the Financial Year, and it will be compounding on a half-yearly basis. The 10-year benchmark G-Sec rate as of 1st April 2022 is 6.85 %. The interest rate would be rounded to the nearest multiple of 25 basis points, and the interest amount would be rounded nearest to Re 1. For Financial Year 2022-23, the loan interest rate applicable is 8.25% compounded half-yearly.
Life Insurers
- Aditya Birla Sun Life Insurance
- Aegon Life Insurance
- Aviva Life Insurance
- Bajaj Allianz Life Insurance
- Bharti Axa Life Insurance
- Canara HSBC OBC Life Insurance
- Edelweiss Tokio life Insurance
- Exide Life Insurance
- Future Generali Life Insurance
- HDFC Life Insurance
- ICICI Prudential Life Insurance
- Ageas Federal Life Insurance
- Indiafirst life Insurance
- Kotak Mahindra Life Insurance
- Life Insurance Corporation of India
- Max Life Insurance
- PNBMetlife India Insurance
- Pramerica Life Insurance
- Reliance Nippon Life Insurance
- SBI Life Insurance
- TATA AIA Life Insurance
