SBI Life Smart Champ Plan
SBI Life Smart Champ plan is a non-linked, individual, and participating life insurance plan, which is specifically designed to fit your child’s educational needs and protect them from unknown future events. You may assure a bright future for your child and save money for their future schooling with the aid of this plan.
The plan provides guaranteed benefits that are paid out exceptionally early in the insurance period. The plan accrues bonuses at the conclusion of each insurance year until the kid reaches the age of 18.
|Minimum Entry Age|
Life Assured: 21 Years, Child: 0 Years
|Maximum Entry Age|
Life Assured: 50 Years, Child: 13 Years
|Minimum Age At Maturity|
Life Assured: 42 Years, Child: 21 Years
|Maximum Age At Maturity||Child: 70 Years|
|Policy Term||8 To 21 Years|
|Basic Sum Assured||Rs. 1 Lakh To Rs. 1 Crore|
Basic Features Of SBI Life Smart Champ
Following are some of the key features of the SBI Life Smart Champ plan:
For yearly, half-yearly, and quarterly policies: 30 days
For monthly mode policies: 15 days
|Free Look Period|
For manually purchased policies: 15 days
For policies purchased via distance marketing: 30 days
|Policy Revival||Within two years of the policy’s expiration, it may be reinstated.|
|Premium Frequency||Single Premium/Yearly/Half-Yearly/Quarterly/Monthly|
|Premium Frequency Loading|
Half-Yearly: 51.00% of Annual Premium
Quarterly: 26.00% of Annual Premium
Monthly: 8.50% of Annual Premium
Benefits Offered By SBI Life Smart Champ
Some of the reasons why you should choose the SBI Life Smart Champ plan are discussed below:
- Death Benefit
Depending on which occurs first, the SBI Life – Smart Champ Insurance plan covers death payments in the event of accidental total permanent disability (ATPD). As death benefits, the policy offers either the basic sum assured or 105% of all premiums paid up until death.
- Smart Benefit
After the child turns 18, 19, 20, and 21, Guaranteed Smart Benefits are payable in four equal annual installments. The basic sum assured+ plus any simple reversionary bonuses, if any, are divided into four equal payments as part of the Smart Benefits. If declared, the terminal bonus will be paid with the final Smart Benefits payment.
- Triple Protection
With your SBI-Life Smart Champ Insurance plan, you will have three levels of protection in the event that a terrible circumstance arises during the policy’s term.
The following benefits are provided by the policy in the situation: Immediate Payment, Waiver of Due Premium, and Smart Benefits. When something unpleasant occurs to the life assured, the Immediate Premium option provides the basic sum assured. With the Waiver of Due Premium option, you can prevent leaving a financial burden on your family. As a result, you won’t have to pay any more premiums. When the child reaches the age of 18, the policy guarantees Smart Benefits in 4 equal installments.
The policy gives you a lot of flexibility when it comes to making premium payments. Depending on your preferences, you can pick between a single premium insurance and a limited premium payment policy. You have the option of making a one-time premium payment or a limited premium payment.
- Tax Benefits
You may be eligible for income tax benefits by purchasing the SBI Life – Smart Champ Insurance policy under section 80C of the Indian Income Tax Act, 1961. However, depending on how Indian tax laws evolve, these benefits could change.
How Does SBI Life Smart Champ Plan Work?
Let’s assume that the age of the life assured is 30 years and of the child is 0 years. The policy term is 21 years and the premium payment term is 18 years. The basic sum assured is Rs. 10 lakhs and the basic premium is Rs. 51,790 per annum exclusive of applicable taxes.
The life assured pays Rs. 51,790 per annum for 18 years or till his child turns 18. Therefore, the smart benefits payable under the plan after 18 years will be as follows:
|Year||Smart Benefit Instalments @ 4%||Smart Benefit Instalments @ 8%|
|18||Rs. 3,08,500||Rs. 4,16,500|
|19||Rs. 3,08,500||Rs. 4,16,500|
|20||Rs. 3,08,500||Rs. 4,16,500|
|21||Rs. 3,43,600||Rs. 5,16,400|
Exclusions Under SBI Life Smart Champ Plan
Within a year of the policy’s initiation, 80% of the premiums paid will be distributed to the nominee if the life assured commits suicide. 80% of premium payments or the surrender value, whichever is higher, would be reimbursed in the event of suicide within a year of the revival date, and the policy would be canceled.
Frequently Asked Questions
No. There is not any rider available under the plan.
The minimum premiums paid under the SBI Life Smart Champ plan are as follows:
Premium Payment Mode
The maximum premium is based on the maximum basic sum assured.
Yes. Nomination is accepted under the plan.
After three years of coverage, the policy may be surrendered because it will have accrued some value that can be repaid. The greater of the Special Surrender Value (SSV) or Guaranteed Surrender Value (GSV) will be paid upon surrender.