SBI Life Smart InsureWealth Plus Plan
As life is unpredictable, we need to be prepared for every unforeseen event so that our dearer ones should not suffer. In order to do so, we need to secure the economic aspect so that our hard-earned money should not get wasted and can help us whenever needed. In order to assist you in achieving your financial goals, SBI Life Insurance Company has come up with a marvellous plan (Smart InsureWealth Plus) that can help you to build a financial corpus to safeguard your and your family’s future. It is an individual, unit-linked, non-participating life insurance product.
This monthly savings plan helps you build your savings gradually by putting aside money every month, in a disciplined manner to tide over the ups and downs of the market in the most efficient manner. The plan provides you with the flexibility to choose from three investment strategies and to change your investment strategy up to 4 times during the policy term, thereby making it a smart choice. To know more about this policy, have a look at the following mentions.
Eligibility Criteria
| Parameters | Descriptions |
| Age at entry | Minimum – 30 days, Maximum – 55 years |
| Age at maturity | Minimum – 18 years, Maximum – 65 years |
| Plan type | Regular premium |
| Policy term | 10, 15, 20, and 25 years |
| Premium frequency | Monthly |
| Premium payment term | Same as the policy term |
| Premium amount (In multiples of Rs. 100) | Minimum – Rs. 4000 per month Maximum – No upper limit. Subject to Board Approved Underwriting Policy |
| Basic sum insured | Annualized Premium X 10 The maximum Basic Sum assured would be as per Board Approved Underwriting Policy |
| Target market | The product is available to customers all over India. |
Benefits Under Smart InsureWealth Plus Plan
This plan has come up with a sack full of benefits and facilities that promise to make your and your family’s life financially secure and protected. The following table talks about the details of these benefits. Have a look.
Death Benefits:
For Life Assured with entry age below 8 years:
On the death of the minor life before the date of commencement of risk under the policy, the company will pay the Fund Value as on the date of intimation of the claim to the company.
For Life Assured with entry age 8 years and above:
On the death of the Life Assured with entry age 8 years and above, the company will pay the Death benefit as mentioned below.
Higher of:
- The Fund Value as on the date of intimation of death to the company or
- Sum assured less Applicable Partial Withdrawal (APW), or
- 105% of the total premiums received up to the date of death less Applicable Partial Withdrawal (APW)
On the Death of Policyholder while the life assured is a minor:
On the death of the Policyholder, while the life assured is a minor, no immediate benefit will be payable. The policy may be continued by the appointment of a new Policyholder for the policy. If the policy is surrendered, the surrender value would be payable as per the Surrender clause.
Maturity Benefits:
- At maturity, you will receive fund value calculated at the prevailing NAV on the maturity date along with the Return of Mortality Charges (ROMC), which will be paid in a lump sum.
- In cases where Life Assured is a minor, the policy will automatically vest in Life Assured on attaining 18 years of age.
Investment Strategies:
Trigger Strategy:
- Your premiums (net of allocation charges) are invested in 80:20 proportions in Equity Fund and Corporate Bond Fund, respectively.
- If the NAV of the Equity Fund changes by more than 15% at any point in time, the excess or shortage value in the Equity Fund automatically gets re-distributed amongst the 2 funds – Equity Fund & Corporate Bond Fund, in the ratio of 80:20, without any charges
- This process will be followed throughout the policy term.
Auto Asset Allocation Strategy:
Your premiums would be invested in Equity Fund, Corporate Bond Fund, and Money Market Fund.
Smart Choice Strategy:
Based on your risk appetite and the objective of investment, you can choose from the 9 funds options under the Smart Choice Strategy plan.
Tax Exemption Benefits:
You may be eligible for 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:
15 days – For policies purchased through channels other than Direct Marketing and for electronic policies. 30 days – For policies sold through distance marketing and electronic policies.
Partial Withdrawal:
In case of any need, the product offers you liquidity. You can opt to make a Partial withdrawal after the 5-policy year or on the attainment of age 18 years by the life assured, whichever is later. Other than systematic monthly withdrawals, a maximum of 4 partial withdrawals can be made in one policy year. No more than 10 partial withdrawals are allowed in the entire policy term in case of a policy term of 10 years or 15 partial withdrawals for a policy term above 10 years.
Features of SBI Life Smart InsureWealth Plus Plan
Apart from the above benefits and facilities, this plan has presented some more special advantages and features that have made the policy unique and popular among consumers. Here are the mentions of those.
Change in Investment Strategy:
You can opt to change the selected investment strategy at any policy anniversary date up to 4 times in the entire policy term. You do not need to bear any charges for exercising this option. When you change your investment strategy, both switching of funds and premium re-direction will happen simultaneously. The total existing funds would be re-balanced such that the existing funds reallocate as per the investment strategy chosen. All future premiums would also be redirected as per the new investment strategy. You can choose only one investment strategy at any point in time. This can be done by giving the insurer a written intimation at least 2 months before the policy anniversary.
Discontinued Policy Fund:
This is a segregated fund of the Company that will not be offered as an investment choice to the policyholder. The objective of the fund is to achieve relatively less volatile investment return mainly through debt instruments and liquid assets and accumulation of income through investment in fixed income securities and liquid assets. The proceeds of the discontinued policy will be refunded only upon completion of the lock-in period, end of the revival period, or the date of surrender, wherever applicable.
| Assets | Minimum | Maximum | Risk profile |
| Government securities | 60% | 100% | Low |
| Money market instruments | 0% | 40% |
Return of Mortality Charges:
At the end of your Policy Term, on the maturity date, the total amount of mortality charges deducted in respect of life cover provided throughout the policy term, will be paid back to you. ROMC is not applicable in the case of Surrender, Discontinuance, or Paid-up policy and will be payable provided you have paid all due premiums under the policy have been paid. ROMC will be excluding any extra mortality charge and/or applicable taxes levied on the mortality charge deducted. The ROMC is paid with the Fund Value and will not be added to the Fund.
Loyalty Additions:
The company rewards In-force policies with Loyalty Additions starting from the end of the 11th Policy Year and at regular intervals till the end of the selected policy term. Loyalty additions would be added to your fund value on the last day of every Policy Year from the 11th Policy Year onwards after they are unitized based on the unit price on the day loyalty additions are due. It would be a percentage of the average fund value over the 1st day of each of the last 12 policy months from the date of allocation of loyalty addition.
| Last day of the policy year | Loyalty addition (% of the average fund value) |
| 1-10 | NIL |
| 11-25 | 0.3% |
Cancelation:
If you cancel the policy, the company will refund you the amount that arrived as per the following formula:
Fund Value as of the date of receipt of a valid request, plus (Premium Allocation Charges + Mortality Charges) along with applicable taxes already deducted Minus the following:
(Mortality Charges along with applicable taxes, proportionate to the period you were covered + Medical Expenses, if any + Cost of Stamp Duty). The amount will be paid in a lump sum.
Surrender:
You can surrender your policy at any time during the policy term.
- If you surrender in the first 5 policy years, then the lock-in condition applies. Your Fund Value net of appropriate discontinuance charges (if any) at the time of surrender request will be transferred to the Discontinued Policy Fund. You will earn a minimum interest rate of 4% per annum, or as prescribed in the prevailing regulation on this Fund. Fund Management Charge of Discontinued Policy Fund shall be deducted. The Fund Value will be payable on the 1 working day of the 6-policy year and the policy will terminate.
- If you surrender after the completion of the first 5 policy years, the fund value is payable immediately and the policy will terminate.
Systematic Monthly Withdrawal:
From Policy Year 11 onwards, you can avail of the Systematic Monthly Withdrawal to meet your regular expenses/to have a fixed monthly payout. By submitting an application to such effect, you can withdraw money from the fund value in a planned manner. Under SMW, you have the flexibility to choose:
- Systematic Monthly Withdrawal Amount as an absolute amount (minimum monthly amount of Rs. 5,000 in multiples of Rs. 1,000).
- Duration of the SMW – Minimum period is 6 months.
- Start date and End date of the Systematic Monthly Withdrawal
- Maximum monthly amount: 1.25% of Fund Value as on SMW request date.
- It can be modified at any point in time (advance notice of 3 months would be required).
- Both SMW and Partial withdrawal can be availed simultaneously.
- Systematic Monthly Withdrawal will not be allowed if the fund value, as a consequence of this withdrawal, is reduced to less than 50% of the total premiums paid.
- You can activate Systematic Monthly Withdrawal as many times as you wish, provided all the conditions for partial withdrawal are satisfied.
Premium Redirection:
Premium redirection will be available only under Smart Choice Strategy. You can make unlimited free premium redirections from the 2-policy month onwards and anytime during the policy term. You may alter the allocation percentages for future premiums by giving notice in writing to SBI Life two weeks prior to the receipt of the relevant premium. Redirection is applicable only to future premiums and will not affect the existing units.
Switching:
This facility will be available under Smart Choice Strategy and will be available at any point of time during the policy term or during the settlement period. You can make unlimited free switches at any point during the policy term or settlement period. The minimum switch amount is Rs. 5,000. There are no restrictions on the number of switches during a particular policy year, the entire policy term, or the settlement period. Any amount/percentage can be switched from any fund to more than one fund in a minimum proportion/percentage of 1.
What Are The Exclusions of SBI Life Smart InsureWealth Plus?
Understanding a policy is not completed if you do not thoroughly review its exclusions. Therefore, to offer you a better idea of the plan, and to avoid future complications, here are the exclusions of the SBI Life Smart InsureWealth Plus Policy.
- Anything that does not follow the terms and conditions of the policy and the company will fall under the category of exclusions.
- If there is any kind of breach of law with criminal intent, that will be excluded from the policy permanently.
- In case of death due to suicide within 12 months from o the date of commencement of the policy or from the date of revival of the policy, as applicable, the nominee or the beneficiary of the policyholder will be entitled to the fund value, as available on the date of intimation of death.
- Further, any charges other than Fund Management Charges (FMC) recovered after the date of death will be added back to the Fund Value as available on the date of intimation of death.
How Does SBI Life Smart InsureWealth Plus Work?
Once you get to know about the inclusions and exclusions of the policy, the next important thing to know is how the policy works. Here is an example of the same.
Mr. Gautam, a 36-year-old businessman, bought SBI Life Smart InsureWealth Plus Policy for himself. Let us find out how much premium amount he has to pay to avail of the benefits of the policy for the given credentials.
| Parameters | Data |
| Age | 36 years |
| Policy term | 20 years |
| Premium frequency | Monthly |
| Investment strategy | Trigger strategy |
| Sum assured | Rs. 1,200,000 |
| Rate of applicable taxes | 18% |
| Premium amount | Rs. 10000 |
Frequently Asked Questions
Listed below are the frequently asked questions related to SBI Smart InsureWealth Plus.
In that case, the following conditions have to be followed:
- For Life assured with an entry age below 8 years, the risk would commence on completion of 1 policy year and 11 months from the date of commencement of the policy. For Life assured with an entry age of 8 years and above, the risk would commence immediately.
- In the case of minor life assured, the policyholder/proposer can be parents, grandparents, or legal guardians. This will be as per the company’s Board approved underwriting policy.
- In case the life assured is a minor, the policy term should be chosen appropriately so that the life assured is a major at the time of maturity of the policy.
APW equals an amount equal to partial withdrawals, if any, in the last 2 years immediately preceding the death of the Life Assured.
The percentage of investments would be as per the range given below, depending on the term to maturity:
| Number of policy years till maturity | Equity fund | Corporate bond fund | Money market fund | |||
| Product specifications | Product specifications | Product specifications | ||||
| Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |
| ≥18 | 60% | 80% | 20% | 40% | 0% | 0% |
| 17 | 60% | 80% | 20% | 40% | 0% | 0% |
| 16 | 60% | 80% | 20% | 40% | 0% | 0% |
| 15 | 60% | 80% | 20% | 40% | 0% | 0% |
| 14 | 60% | 80% | 20% | 40% | 0% | 0% |
| 13 | 55% | 75% | 25% | 45% | 0% | 0% |
| 12 | 50% | 70% | 30% | 50% | 0% | 0% |
| 11 | 45% | 65% | 35% | 55% | 0% | 0% |
| 10 | 40% | 60% | 40% | 60% | 0% | 0% |
| 9 | 35% | 55% | 45% | 65% | 0% | 0% |
| 8 | 30% | 50% | 50% | 70% | 0% | 0% |
| 7 | 25% | 45% | 45% | 75% | 0% | 0% |
| 6 | 20% | 40% | 40% | 80% | 0% | 20% |
| 5 | 15% | 40% | 40% | 85% | 0% | 20% |
| 4 | 10% | 30% | 40% | 80% | 10% | 30% |
| 3 | 5% | 25% | 40% | 80% | 15% | 35% |
| 2 | 0% | 20% | 40% | 80% | 20% | 40% |
| 1 | 0% | 15% | 40% | 80% | 20% | 45% |
If your policy is not in force but revived subsequently, Loyalty Additions will be credited on the date of revival, provided all due premiums have been paid. In the case of paid-up policies, future loyalty additions will not be added to the fund. However, the loyalty additions already added to the Fund prior to the policy acquiring paid-up status will remain invested.
The following 9 fund options are available:
- Pure Fund: The objective of this fund is to provide high equity exposure targeting higher returns in the long term.
- Midcap Fund: The objective of this fund is to provide high equity exposure targeting higher returns in the long term by investing predominantly in Midcap Companies.
- Bond Optimiser Fund: The objective of the fund is to earn returns higher than a pure fixed income fund by investing in a mix of Government Securities, Corporate Bonds, Money Market Instruments, and up to 25 percent in Equity instruments.
- Balanced Fund: The objective of this diversified fund is to provide an accumulation of income through investments in both equities and fixed income securities with an attempt to maintain a suitable balance between return and safety.
- Corporate Bond Fund: The objective of the fund is to earn a steady income for policyholders by investing in debt instruments and optimize returns for the portfolio by predominantly investing in Corporate Bonds of medium-term maturities.
- Equity Optimiser Fund: The objective of this fund is to provide equity exposure targeting higher returns through long term capital gains.
- Equity Fund: The objective of this fund is to provide high equity exposure targeting higher returns in the long term.
- Growth Fund: To provide long term capital appreciation through investment primarily in equity and equity related instruments with a small part invested in debt and money market for diversification and risk reduction.
- Money Market Fund: The objective of this fund is to deploy the funds in liquid and safe instruments so as to avoid market risk on a temporary basis.
The nominee or beneficiary or legal heir has the option to receive the Death Benefit in installments over 2 to 5 years under the Settlement Option as yearly, half-yearly, quarterly, or monthly payouts as required, from the date of death.
The following charges are applicable for this policy:
- Premium allocation charges
- Policy administration charges
- Fund management charges
- Discountenance charges
- Switching charges
- Premium redirection charges
- Partial withdrawal charges
- Mortality charges
- Additional allocation charges
The Net Asset Value (NAV) will be declared daily on the unit funds, enabling the policyholder to track the performance of the fund selected by him/her. NAV of the fund shall be computed as:
(Market Value of Investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any) divided by the Number of Units existing on the Valuation Date (before the creation/redemption of units)
This policy will not be eligible for any loans.
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