sbi life insurance
SBI Life Smart Bachat Policy

SBI Life Smart Bachat Plan

SBI Life Smart Bachat plan is a non-linked, individual, and participating life insurance savings plan with the option of a limited premium payment term. The plan is specifically designed to reduce the burden of making ongoing premium payments. It enables you to carry the responsibility of your family and loved ones in times of medical exigencies. 

The plan comes with two different options, including the Endowment option and Endowment option with an integrated Accidental Death and Total Permanent Disability (AD & TPD) benefit. Additionally, it gives you the freedom to select the term for paying the premium that works best for you. With this plan, you may wisely meet your investment needs while also securing the future of your family.

Eligibility Criteria

Minimum Entry Age

For Endowment Option: 6 Years

For Endowment Option With AD & TPD Benefit: 18 Years

Maximum Entry Age50 Years
Maximum Age At Maturity65 Years
Basic Sum AssuredRs. 1 Lakh To No Limit
Policy Term 12 To 25 Years

Key Attributes Of SBI Life Smart Bachat Plan

The features of the SBI Life Smart Bachat plan are mentioned below:

Loan FacilityOnce the policy has reached a surrender value, policyholders are eligible to use the loan facility. A maximum of 90% of the insurance surrender value will be lent.
RebatesFor high sum assured, rebates will be offered as discounts on the base premium.
Free Look PeriodThere is a free look period of 15 days (if the policy is obtained through direct marketing methods) or 30 days (if the policy is obtained through distant marketing means). The original policy document must be returned in the event of cancellation within the free look period itself.
Policy RevivalWithin two years of the first missed premium due date, you can reinstate the policy. If sufficient evidence of insurability is provided, revival will proceed.
Grace PeriodFor insurance with yearly, half-yearly, and quarterly premium payment frequencies, a grace period of 30 days will be given; for policies with a monthly premium payment frequency, a grace period of 15 days will be given.
Surrender ValueOnly when premiums have been paid for at least 3 full years and at least 2 full years (for premium payment terms of less than 10 years) will the policy obtain a paid-up or surrender value (for premium payment term of 10 years and over).

Benefits Of SBI Life Smart Bachat Plan

Some of the key benefits of the plan are as discussed below:

  • Maturity Benefit: The Vested Simple Reversionary Bonuses + Basic Sum Assured + Terminal Bonus, if any, will be paid to the assured policyholder if they live to the end of the policy period. The policyholder will receive the Paid-Up Sum Assured rather than the Basic Sum Assured (if the policy is a paid-up policy).
  • Death Benefit: A or B, whichever is higher, will go to the beneficiary in the event that the life-guaranteed policyholder passes away during the policy term.
    • A: Death Sum Assured plus Vested Simple Reversionary Bonuses plus Terminal Bonus (if any). Here, the Basic Sum Assured or 10x Annualized Premium will be the Sum Assured upon Death.
    • B: 105% of all premiums up to the point of death.
  • AD & TPD Benefit: A lump sum AD & TPD Benefit plus Death Benefit will be paid to the beneficiary in the event of the accidental death of the guaranteed policyholder while the policy is still in effect. In the event of accidental total & permanent disability of the life assured during the policy term, the AD&TPD Benefit will be paid in a lump sum, all future insurance premiums will be waived, and the base policy will remain in effect until it is surrendered, reaches maturity, or the life assured dies.
  • Participation In Profits: The policy is entitled to a share of the company’s “with profits” life insurance business’ profits. It receives a portion of the revenue generated by this company in the form of bonuses. Reversionary bonuses that are straightforward would be announced as a percentage rate and would be applied to the baseline sum assured.
  • Tax Benefits: According to the existing Indian income tax laws, which are subject to change from time to time, you may be qualified for income tax benefits or exemptions. To learn more, please contact a tax professional.
  • Discounts: High Sum Assured discounts are offered as reductions in the base premium depending on the following slabs.
Basic Sum AssuredDiscount On Premium Per 1000 Sum Assured
Rs. 1 Lakh <= SA < Rs. 3 LakhsNIL
Rs. 3 Lakhs <= SA < Rs. 5 LakhsRs. 3.00
>= Rs. 5 LakhsRs. 4.00

How This Plan Work?

Let’s imagine Mr. Kumar, 35 years old, has opted for the SBI Life Smart Bachat (Endowment Option) plan for a policy term of 12 years and a basic sum assured of Rs. 1 lakh. The annualized premium will be Rs. 15,382 per annum, exclusive of applicable taxes. The premium payment term is 6 years. 

In case Mr. Kumar dies at the end of the 5th policy year

Death Benefit: @4% = Rs. 1,59,570; @8% = Rs. 1,73,945

This death benefit will be provided to the nominee of the policyholder and the life cover will be throughout the policy term of 12 years. 

In case Mr. Kumar survives the end of the policy term

Maturity Benefit: @4% = Rs. 1,13,800; @8% = Rs. 1,48,300

The yearly premium will be paid by Mr. Kumar for 6 years, after which he will get the maturity benefit as mentioned above.

Now, let’s assume that Mr. Kumar chooses Option 2, which is the Endowment Option with AD & TPD Benefits. The policy term is 12 years and the premium paying term is 6 years. The basic sum assured is Rs. 1 lakh. Therefore, the annualized premium will be Rs. 15,510 per annum which is exclusive of applicable taxes.

In case Mr. Kumar dies at the end of the 8th policy year.

Death Benefit: @4% = Rs. 1,64,300; @8% = Rs. 1,87,300 

In case Mr. Kumar survives the policy term.

Maturity Benefit: @4% = Rs. 1,13,800; @8% = Rs. 1,48,300

The base policy remains in effect until surrender, death, or maturity, whichever occurs first, in the tragic event of total and permanent disability of the life assured owing to an accident during the policy term. Future premiums are also waived.

What’s Not Included Under SBI Life Smart Bachat Plan?

The plan has the following exclusions:


  •  No death benefit will be paid by the insurer if the life-guaranteed policyholder kills himself within a year of the policy start date or a policy revival/reinstatement date, regardless of whether they were in a sane or deranged state of mind.
  •  If the suicide occurred within a year of the start of risk coverage, the nominee listed in the policy will receive 80% of all premiums paid up until the time of death.
  •  80% of the premiums paid up until the time of death or the policy’s surrender value, whichever is higher, will be paid in the event of suicide within a year of the policy revival/reinstatement date.
  •  The policy will end once benefits have been paid.


If any of the following causes of death or disability have occurred:

  • Caused by any infection, with the exception of an infection brought on by a visible external wound that was accidentally inflicted.
  • Intoxicants or medications other than those that have been prescribed by a medical expert that causes death or incapacity.
  • Any self-inflicted wounds, including those received during a suicide attempt.
  • Death or disability brought on by involvement in illegal or criminal activity.
  • Death or impairment brought on by hostilities, war, civil unrest, invasion, insurrection, etc.
  • Death or impairment brought on by exposure to radioactive, explosive, or dangerous nuclear fuel materials, or accident resulting from such materials.
  • If the life assured’s participation in any airborne activity—other than being a passenger on a commercially permitted aircraft—has resulted in death or disability.
  • If the life assured engages in risky sports or activities that are not protected by the policy’s provisions.

Frequently Asked Questions

Yes. The plan offers premium waiver benefits in case of total and permanent disability due to an accident.

The plan provides four premium payment term options, including 6, 7, 10, and 15 years.

Yes. The premium for the plan can be paid in yearly, half-yearly, quarterly, and monthly modes.

Yes. In case the policy is purchased by a staff member of SBI, a total of 6% discount will be given to the policyholder.