sbi life insurance
SBI Life Smart Humsafar Policy

SBI Life Smart Humsafar Plan

SBI Life Smart Humsafar is a unique joint life plan that is issued on the lives of husband and wife, which means this joint life insurance cum savings product allows you to take insurance coverage for yourself and your spouse under a single policy. It is an Individual, Non-Linked, Participating Life Insurance Savings Product that provides you with multiple benefits of insurance coverage and savings for both husband and wife. When you have a family or going to make a family, the first responsibility is to make your family safe and secure. Along with that, you need to fulfill your dreams, such as buying a car, purchasing a house, or the higher education of your children. This is the ideal plan to achieve your objectives, as it helps you to build a financial corpus and thus helps you to keep your family protected financially, even when you are not around. To know more about this policy, have a look at the following mentions.

Eligibility Criteria

ParametersDescriptions
Age at entryMinimum – 18 years, Maximum – 46 years
Maximum age at maturity65 years
The maximum age difference between the lives assured20 years
Basic sum assured

Minimum – Rs. 1 lakh

Maximum – Rs. 5 crores (The maximum basic sum assured will be as per board approved underwriting policy)

Policy termMinimum – 10 years, Maximum – 30 years
Premium frequencyMonthly, quarterly, half-yearly, and yearly.
Premium frequency loading

Half-Yearly: 51.00% of annualized premium

Quarterly: 26.00% of annualized premium

Monthly: 8.50% of annualized premium

Minimum premium

Yearly – Rs. 6000, Half-yearly – Rs. 3000

Quarterly – Rs. 1500, Monthly – Rs. 500

Maximum premiumBased on the basic sum assured

What Are The Benefits of SBI Life Smart Humsafar?

This policy has come up with a sack full of benefits and facilities that promise to keep you and your family protected till the expiry date of the policy. The following table gives you the details of these benefits. Have a look.

ParametersDetails
Death Benefit

First Death:

If your policy is in force as of the date of the first death. The Higher of the followings is paid to the surviving life assured.

  • Sum assured on death (Sum assured on death is higher than Basic Sum Assured or 10 times of annualized premium (AP)).
  • 105% of the total premiums received up to the date of death under the base policy.

Further, all future premiums starting from the next policy anniversary will be waived off for the surviving life assured. Waiver of premium will take place only if the policy is in force for the full sum assured at the time of first death.

Second Death:

If your policy is in force as of the second death date, the higher of the followings is paid to the nominee.

  • Sum Assured on death + Vested Simple Reversionary Bonuses + Terminal Bonus, if any. (Sum assured on death is higher than Basic Sum Assured or 10 times of annualized premium (AP))
  • 105% of the total premiums received up to the date of death under the base policy.
Maturity BenefitIf either or both of the lives assured survive till maturity, then Basic Sum Assured + Vested Simple Reversionary Bonuses + Terminal Bonus, if any, will be paid provided the policy is in force.
Participation in profitThe policy shall participate in the profits arising out of the company’s participating life insurance business. It gets a share of the profits emerging from this business in the form of a bonus. Simple reversionary bonuses, if declared, would be as a percentage rate, which applies to the basic sum assured in respect of the basic policy benefit (not of riders).
Tax exemption benefitUnder this policy, you are eligible to avail of Income Tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time.
Free look period

For policies sourced through any channel mode other than Distance Marketing and electronic policies – 15 days

For policies sourced through Distance Marketing and electronic policies – 30 days

Grace period

For yearly, half-yearly, and quarterly premiums – 30 days

For monthly premium – 15 days

Key Highlights of SBI Life Smart Humsafar

Apart from the above benefits and facilities, this policy has also presented a bunch of special features that have made the policy unique and popular among consumers. The mentions are as follows.

Accident Death Protection For You and Your Family:

Either of the lives assured or both lives assured have an option of availing of SBI Life – Accidental Death Benefit Rider at an affordable cost. The rider benefit will be payable in respect of each of the life assured. The rider cover is available only for in-force policies and until the anniversary of the first death.

However, if both lives assured have chosen rider and both die simultaneously as a result of an accident, or die on different dates as a result of the same accident, or die during the same policy year as a result of different accidents, then the rider benefit will be paid in respect of both lives assured, provided the accident happens within the policy term, and the death due to accident happens within 120 days from the date of accident irrespective of expiry of the policy term. The rider benefits can be taken up only at the inception of the policy. However, the benefits may be terminated by stopping the premium payment for the rider. The base policy may be continued.

Rider Benefit Eligibility Criteria:

ParametersDescription
Age at entryMinimum – 18 years, Maximum – 65 years
Age at maturityMaximum – 75 years
Policy term

Minimum – 5 years, Maximum – 75 less entry age

The rider policy term cannot be more than the base policy term.

Basic sum assured

Minimum – Rs. 25000, Maximum – 50 lakhs

The rider sum assured cannot be more than the basic sum assured.

Surrender Value and Paid-up Value:

The policy will acquire a paid-up and/or surrender value only if premiums for at least the first 2 full policy years have been paid. The Sum Assured payable on death or maturity of a paid-up policy will be reduced. This reduced Sum Assured will be called the Paid-up Sum Assured on death or maturity, as the case may be.

Policy Loan Facility:

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 or paid-up policy may be revived within 5 consecutive years from the date of the first unpaid premium subject to satisfactory proof of insurability of both lives as required by the company from time to time. This facility is subject to the terms and conditions of the company.

Multiple Discounts:

The following discounts are available under this policy:

  • Staff Discount – Staff Discount is applicable for employees, retired employees, VRS holders, minor children, and spouses of employees of SBI Life Insurance Co. Ltd. and State Bank of India, RRBs sponsored by State Bank of India, and subsidiaries of State Bank group. A discount of 6 % on the tabular premium is provided.
  • Large Sum Assured Discount – Discounts on large Sum Assured are available on the basic premium based on the following slabs. In the case of regular premium, it applies across all premium modes. The discount is as follows:
Basic sum assuredDiscount on premium per thousand basic sum assured
Rs. 1.00 Lakhs ≤ SA < Rs. 3.00 LakhsNIL
Rs. 3.00 Lakhs ≤ SA < Rs. 5.00 LakhsRs. 2.00
≥ Rs. 5.00 LakhsRs. 3.00

What Are General Exclusions of SBI Life Smart Humsafar?

Understanding a policy is not completed if you do not thoroughly review its exclusions. Therefore, to offer you a better idea of the policy, and to avoid future complications, here are the general exclusions of the SBI Life Smart Humsafar Policy.

  • If there is any kind of breach of law with criminal intent, the policy will not be liable to pay compensation for that.
  • If anything that does not satisfy the terms and conditions of the company and the policy will also fall under the category of exclusions.
  • 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, as applicable, 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, only if the policy is in force. After paying the benefit as stated above, the contract will be terminated.

How Does SBI Life Smart Humsafar Work?

Once you know about the policy’s inclusions and exclusions, the next important thing t know is how the policy works. Therefore, to offer you a greater understanding, here is an example.

Mr. Sinha, a 36-year-old businessman, bought an SBI Life Smart Humsafar Policy for himself and his spouse. Let us find out how much premium amount he has to pay to avail of the benefits of the policy.

ParametersCredentials
AgeMr. Sinha – 36 years, Mrs. Sinha – 34 years
Policy term15 years
Premium payment term15 years
Premium frequencyYearly
Sum assuredRs. 30 lakhs
ABD Rider for proposerTerm – 5 years, Sum assured – Rs. 25000
ABD Rider for spouseTerm – 5 years, Sum assured – Rs. 25000
Premium amount excluding taxesRs. 2,23,890
Benefits

Maturity benefit (At an assumed rate of returns)

@ 4% – Rs. 38,79,750 or @ 8% – Rs. 48,11,250

Frequently Asked Questions

For the Monthly mode, up to 3 Months’ premium has to be paid in advance and renewal premium payment has to be done through an Electronic Clearing System (ECS) or Standing Instructions where payment is made either by direct debit of a bank account or credit card.

Annualized premium is the premium amount payable in a year chosen by the policyholder, excluding the applicable taxes, rider premiums, underwriting extra premiums, and loadings for modal premiums, if any.

For the Monthly Salary Saving Scheme (SSS), up to 2 months’ premium has to be paid in advance and renewal premium payment is allowed only through Salary Deduction.

The following conditions have to be followed:

  • The premium for SBI Life – Accidental Death Benefit Rider cannot be more than 30% of the base product premium.
  • If the rider term is different than the base policy term, then once the rider policy term is over, the benefits available on account of choosing the said rider will not be further available and the policy will continue without the rider benefits till death or maturity, whichever is earlier.
  • Rider premium would be charged only for the duration under which the rider cover is valid.
  • Riders may be canceled on any policy anniversary with a notice written in advance.
  • The total sum assured under SBI Life – Accidental Death Benefit Rider on all of your individual policies taken with SBI Life Insurance Co. Ltd put together would not exceed Rs. 50, 00,000

Paid-up Sum Assured on death, on the first or second death, will be calculated by multiplying the Sum Assured on death under the policy by the ratio of the number of premiums paid to the number of premiums actually payable under the policy. Similarly, Paid-up Sum Assured on Maturity will be calculated by multiplying the basic Sum Assured under the policy by the ratio of the number of premiums paid to the number of premiums payable under the policy.

The Guaranteed Surrender Value (GSV) is equal to GSV factors multiplied by the total premiums paid plus the Surrender value of the vested bonuses.

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 1st April of each of the Financial Year and it will be compounding on a half-yearly basis. The current interest rate applicable for policy loans for the current financial year is 9% compounded half-yearly.

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