SBI Life Smart Money Planner Plan
SBI Life Smart Money Planner is a non-linked, individual, and participating life insurance savings plan. It is specifically customized to meet all of your needs and expectations by providing the added benefit of assured cash inflow at regular intervals. The plan comes in four options: Plan 1, Plan 2, Plan 3, and Plan 4.
This product is intended for those who want to budget for different financial commitments at specific points in their lives. It gives you the means to achieve all of your short- and long-term objectives financially. Additionally, it provides you with a life insurance policy that covers you for the whole policy term of your choice, all without requiring you to pay premiums during the duration of the policy.
|Minimum Entry Age||18 Years (For All Plan Options)|
|Maximum Entry Age|
Plan 1: 60 Years, Plan 2: 55 Years
Plan 3: 55 Years, Plan 4: 50 Years
Plan 1: 15 Years, Plan 2: 20 Years
Plan 3: 20 Years, Plan 4: 25 Years
|Maximum Age At Maturity||75 Years|
|Minimum Basic Sum Assured||Rs. 1 Lakh|
|Maximum Basic Sum Assured||Rs. 5 Crores|
Prominent Features Of SBI Life Smart Money Planner
The points below discuss the prominent features of the SBI Life Smart Money Planner:
- Surrender Value: For limited premium policies, a paid-up and/or surrender value will only be acquired if premiums have been paid for at least the first two policy years in a row.
- Loan Facility: If the insurance has the surrender value, the policyholder may request a loan against it. No more than 90% of the surrender value may be borrowed.
- Grace Period: For yearly, half-yearly, and quarterly premiums, the plan provides you a grace period of 30 days, and for monthly premiums, it is 15 days. If no premium is paid at the end of the grace period, the policy will expire or become paid up and will no longer be in effect.
- Revival: Within five years of the initial unpaid premium, a paid-up or lapsed policy may be reinstated with the proper proof of insurance, as deemed necessary by the firm.
- Free Look Period: For insurance obtained through any channel mode other than distance marketing and electronic policies, this product offers a 15-day free look period (30 days for policies sourced through Distance Marketing and electronic policies). If the policyholder decides they are unhappy with the terms and conditions of the policy and would like to cancel it, they may do so by returning the policy to the insurer along with a written request for cancellation within 15 days for policies obtained through any channel mode other than distance marketing and electronic policies and 30 days for policies obtained through distance marketing and electronic policies after receiving the policy.
Benefits Offered By SBI Life Smart Money Planner
The plan brings the following benefits to the insured person:
- Death Benefit
The following will be paid as a death benefit by the company if the policy is still in effect on the date of death:
- The greater of the following will be paid to policyholders who chose the Limited Premium Payment term:
- 105% of premiums paid
- Sum Assured on Death + Terminal Bonus (if any) + Vested Simple Reversionary Bonuses. In this case, the Sum Assured is the greater of the Basic Sum Assured, the Guaranteed Sum Assured at Maturity, or a multiple of the Annualized Premium. For entry age below 45 years, the multiple is 10; whereas, for entry age of 45 years and above, the multiple is 7.
- The company will pay the Sum Assured + Terminal Bonus (if any) + Vested Simple Reversionary Bonuses to policyholders who have chosen Single Premium.
Here, the Sum Assured is the greater of the Basic Sum Assured, the Guaranteed Sum Assured at Maturity, or a multiple of a single premium. For entry age below 45 years, the multiple is 1.25; whereas, for entry age of 45 years and above, the multiple is 1.10.
The company will pay the paid-up value if the life insured dies during the policy term even if the policy is not in force but has a paid-up value. The paid-up value on death in this case consists of the paid-up Sum Assured on Death plus any applicable Terminal Bonuses and Vested Simple Reversionary Bonuses.
- Survival Benefit
The firm will pay the survival benefit in instalments at the conclusion of each policy year if the life insured is still alive. One year after the growth period has ended, the first benefit instalment will be paid. The survivor benefit will be a fixed portion of the Basic Sum Assured if the policy is in effect. The percentage will apply to the paid-up Sum Assured if the policy has attained paid-up status.
- Maturity Benefit
The firm will pay the Guaranteed Sum Assured at maturity if the policy is active and the life insured is still alive at the conclusion of the policy term. Additionally, it will pay the Vested Simple Reversionary Bonus and the Terminal Bonus, if any. The firm will pay the paid-up value upon maturity if the life insured is still alive at the conclusion of the policy term and the policy is not in force but has a paid-up value. It is the same as the vested simple reversionary bonuses plus any applicable terminal bonuses and the paid-up amount guaranteed at maturity.
On the basis of the following slabs, guaranteed refunds are provided as discounts on the premium.
|Basic Sum Assured||Discount On Per 1000 BSA|
|Limited Premium||Single Premium|
|Rs. 2 Lakhs <= SA < Rs. 3 Lakhs||Rs. 2||Rs. 20|
|Rs. 3 Lakhs <= SA < Rs. 5 Lakhs||Rs. 3||Rs. 25|
|<= Rs. 5 Lakhs||Rs. 5||Rs. 30|
- Tax Benefits
Up to a maximum of Rs. 1.5 lakhs, premiums paid under the plan would be exempt from taxation under Section 80C. As per Section 10(10 D) of the Income Tax Act, the maturity benefit and death benefit will also be free from taxes.
Functioning Of SBI Life Smart Money Planner
Let’s assume Mr. Singh, a 25-year-old, chooses this policy and purchases a 50-lakh rupee insurance coverage. He enrolls in Plan 2, which has a 20-year insurance term and a 6-year premium payment period. His yearly premium will be around Rs. 7,86,807. The benefits he will get are as mentioned below:
- Maturity Benefit: In case Mr. Singh survives the policy period, he will get the maturity benefit. Along with the annual returns’ non-guaranteed advantages, he will start receiving an amount of Rs. 5 lakhs starting in the 11th year.
- Death Benefit: In case Mr. Singh, unfortunately, dies within the policy period, his nominee will get a death benefit. These will be the bonuses that apply as well as the guaranteed base amount of Rs. 50 lakhs, which will range from Rs. 14,95,000 to Rs. 34,50,000, if we guarantee 4% to 8% annual returns.
- Surrender Benefits: Between the second and eleventh years of the policy, the surrender benefits will be in the range of Rs. 4,56,120 to Rs. 27,36,720. Following then, the benefits will diminish until the 16th year and won’t be available beyond that.
Exclusions Under SBI Life Smart Money Planner
Eighty percent of the premiums paid would be returned and no death benefit would be awarded if the insured committed suicide within a year of the policy’s issuance. As long as the policy is in effect, the higher of 80% of the premiums paid up until death or the Surrender Value earned would be paid in the event of suicide within a year of the policy reactivation.
Frequently Asked Questions
The plan has four options with different premium payment periods. For Plan 1 and Plan 2, the premium payment period is 6 years, whereas, for Plan 3 and Plan 4, it is 10 years.
Plan 1 and Plan 2 have a 4-year growth period; whereas, Plan 3 and Plan 4 have a 5-year growth period.
You can pay premiums on a yearly, half-yearly, quarterly, or monthly basis or as a single premium.
The premium frequency loading for the SBI Life Smart Money Planner is as follows:
- Half-Yearly: 51.00% of Annualized Premium
- Loading Quarterly: 26.00% of Annualized Premium
- Monthly: 8.50% of Annualized Premium
Yes. Nomination and assignment are allowed under the plan as per Sections 38 and 39 of the Insurance Act, 1938.