SBI Life Smart Income Protect Plan
SBI Life Smart Income Protect plan is a non-linked, individual, participating, life insurance savings plan that is specifically designed to give you the life insurance and consistent income flow you need.
You contribute to this participating conventional plan by making recurring payments over a 7, 12, or 15-year term. After then, your payment period begins, during which you will get 15 years’ worth of annual installments that are assured to be consistent and will help meet your future needs or expenses.
|Minimum Entry Age|
For Policy Term 7 Years: 11 Years
For Policy Term 12 Years: 8 Years
For Policy Term 15 Years: 8 Years
|Maximum Entry Age|
For Policy Term 7 Years: 58 Years
For Policy Term 12 Years: 53 Years
For Policy Term 15 Years: 50 Years
|Age At Maturity||18 To 65 Years|
|Policy Term||7/12/15 Years|
|Basic Sum Assured||Rs. 1 Lakh To No Limit|
Focal Points Of SBI Life Smart Income Protect Plan
Some of the key features of the plan are listed below:
|Surrender Value||If premiums have been paid for at least two years for a term of 7 years and at least three years for a term of 12 or 15 years, the policy will have a surrender value. The basic sum assured, sometimes referred to as the paid-up sum assured, would decrease to match the number of premiums paid. The Guaranteed Surrender Value (GSV) X number of premiums paid would be the surrender value.|
|Loan Facility||The policy does not have any loan facility.|
|Grace Period||For quarterly, half-yearly, and annual premium payments, a grace period of 30 days from the due date is offered if the policyholder is unable to make the required payment by the deadline. The grace period for monthly payments is 15 days.|
Within two years of the first missed premium due date, the policy may be renewed. If the following conditions are satisfied, the policy may be reinstated:
|Participation In Profits||The policy is entitled to a share of the company’s “with profits” life insurance business’ profits. If bonuses are declared, it receives a portion of the earnings made by this company.|
|Nomination||The policyholder has the option to designate a person or persons to receive the policy benefits in the event of their demise. Before the policy’s maturity, this must be done.|
|Free Look Period||After reading the policy, if the policyholder is dissatisfied with any of its provisions, he or she may return the policy paper, explaining why, during the free look period without being charged a fee. The free look time is 30 days in the case of distance marketing methods and 15 days after receiving the policy paper.|
Why Should You Choose SBI Life Smart Income Protect Plan?
You can consider buying the plan because it offers the following benefits to the policyholder:
- Maturity Benefit
If the policy is still in effect, the following would be paid to the policyholder upon maturity:
- Terminal bonus plus vested reversionary bonus (if applicable)
- 11% of the basic sum assured will be paid out annually for the following 15 years.
Payments may alternatively be made in one lump amount, in which case the total sum assured at maturity will be 110% of the basic sum assured, plus any applicable terminal bonus and vested reversionary bonus.
- Death Benefit
The dependents/nominees will be entitled to the higher of the following benefits in the case of the policyholder’s death while the policy is still in effect:
- Sum assured on death plus a termination bonus and a vested simple reversionary bonus (if applicable)
- 100 percent of all premiums up until the date of death.
At the conclusion of the policy term, you will receive the vested reversionary bonuses as well as the terminal bonus, if declared. The Vested Simple Reversionary Bonus represents the total bonus accumulated during the policy’s term. If disclosed, the bonus will be applied to the base sum promised. During the policy term or at maturity, the Terminal Bonus (if declared) will also be paid in the event of death or surrender.
In addition to the numerous advantages and features mentioned above, the SBI Life Smart Income Protect plan offers policyholders basic life insurance. A rider or add-on plan can be purchased if the policyholder wants to increase the level of protection offered by the plan. A variety of riders are available, depending on the needs of the policyholder.
- Accidental Death Benefit Rider
- Accidental Total & Permanent Disability Rider
- Preferred Term Rider
For larger sum assured, the discounts are as follows:
|Basic Sum Assured||Discount On Regular Annualized Premium|
|Rs. 1 Lakh =< BSA < Rs. 2 Lakhs||Nil|
|Rs. 2 Lakhs =< BSA < Rs. 5 Lakhs||2|
|BSA >= Rs. 5 Lakhs||3|
Employees, retired employees, VRS holders, minor children, and spouses of employees of SBI Life Insurance Co. Ltd., State Bank of India, RRBs sponsored by State Bank of India, and subsidiaries of State Bank Group will all receive a discount of 5% off the tabular premium.
- Tax Benefits
According to the relevant income tax regulations in India, which are subject to change from time to time, you could qualify for income tax benefits or exemptions. For more information, please contact your tax advisor.
Functioning Of SBI Life Smart Income Protect Plan
The SBI Life Smart Income Protect Plan functions in a way that is advantageous for insurance and savings. Let’s use an illustration to show what we mean.
Mr. Kumar, a 35-year-old healthy male, decided to purchase “SBI Life – Smart Income Protect” for a Basic Sum Assured of Rs. 10,00,000 with a 15-year policy term. Throughout the policy’s term, he pays an annual premium of Rs. 74,370 (excluding any relevant taxes). After maturity, he will receive payments each year equivalent to 11% of the basic sum insured, or Rs. 1,10,000 per year, for the following 15 years.
In case Mr. Kumar selects 12 years policy term
Maturity Benefit: Vested Reversionary Bonuses + Terminal Bonus = Rs. 1,38,000 (@4%), Rs. 5,52,000 (@8%)
Total Premium Paid: Rs. 11,33,400
Mr. Kumar will get Rs. 1,10,000 per annum for the next 15 years.
In case Mr. Kumar selects 7 years policy term
Maturity Benefit: Vested Reversionary Bonuses + Terminal Bonus = Rs. 80,500 (@4%), Rs. 3,22,000 (@8%)
Total Premium Paid: Rs. 11,72,290
Mr. Kumar will get Rs. 1,10,000 per annum for the next 15 years.
Exclusions Under SBI Life Smart Income Protect Plan
Within a year of the policy’s initiation, 80% of the premiums paid will be distributed to the nominee in the event that 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
The premiums can be paid yearly, half-yearly, quarterly, and monthly.
The payout frequency of the plan is on yearly basis.
Yes. At maturity, the paid-up value would be equal to 110% of the paid-up sum assured, plus any vested reversionary bonus or terminal bonus. The paid-up value on death is the paid-up sum assured plus any applicable terminal bonus and vested reversionary bonus.
For the rider options available under the plan, the minimum and maximum sum assured amount should be Rs. 25,000 to Rs. 50 lakhs respectively.