sbi life insurance
SBI Life Insurance Smart Privilege Policy

SBI Life Smart Privilege Plan

SBI Life – Smart Privilege is an Individual, Unit Linked, Non-Participating, Life Insurance Product that offers protection and lets you control your investment in the market through multiple fund switches and loyalty additions to boost your fund value. The plan gives you the flexibility to do multiple switches and premium directions among 11 diverse funds with loyalty additions to boost your fund value. It does not levy any policy administration charges, thus, ensuring that more of your money is working in your favor of you. It adds value to your investments. It has come up with dual benefits, life insurance coverage, and market-linked returns. This plan helps you build a financial corpus so that you and your family remain financially protected. During the settlement period, the investment risk in the investment portfolio is borne by the beneficiary. To know more about this plan, have a look at the following mentions.

Eligibility Criteria

Minimum entry ageRegular, or Limited premium policies: 8 years, Single Premium: 13 years
Maximum entry age55 years
Maturity ageMinimum – 18 years, Maximum – 70 years
Plan typeRegular premium, limited premium, and single premium
Policy term

Regular premium – 10 years to 30 years

Limited premium – 10 years to 30 years

Single premium – 5 years to 30 years

Premium payment term

Regular premium – Same as policy term

Limited premium:

Minimum – 5 years

Maximum – Policy term minus 1 year

Single premium – One-time payment at the inception of the policy.

Minimum premium amount (In multiples of Rs. 100)

Regular premium/Limited premium payment:

Yearly – Rs. 6 lakhs

Half-yearly – Rs. 3 lakhs

Quarterly – Rs. 1,50,000

Monthly – Rs. 50,000

Single premium – Rs. 6 lakhs

Maximum premium amount

No upper limit

It will be as per Board Approved Underwriting Policy

Premium payment frequencyYearly, half-yearly, quarterly, and monthly
Basic sum insured

Regular premium and limited premium payment term – 7 x Annualized premium

Single premium – 1.25 x Single Premium

SBI Life Smart Privilege Plan Benefits

This plan has come up with a sack full of benefits and advantages that have made your life secure with life covers and help you to safeguard your family financially. The following table talks about all these details.

Death benefit

In case of unfortunate death of the life assured during the policy term, while the policy is in force, the beneficiary will

receive higher of:

  • Fund Value as on the date of death intimation or
  • Basic Sum Assured Less Applicable Partial Withdrawals (APW) or
  • 105% of total premiums received up to the date of death less Applicable Partial Withdrawals (APW).

In the case of minor lives, the date of commencement of policy and date of commencement of risk will be the same and the

policyholder/proposer can be parents, legal guardian, etc. This shall be as per the company’s Board approved underwriting policy.

Installment option

The nominee or beneficiary (legal heir) has the option to receive the Death Benefit as a Lump sum or in installments over 2 to 5

years under the ‘Settlement’ Option as yearly, half-yearly, quarterly, or monthly payouts as required.

Maturity benefitOn completion of the Policy Term, the Fund Value will be paid in lumpsum as a maturity benefit.
Tax benefitsWith this policy, you are eligible for Income Tax benefits/exemptions as per the applicable income tax laws in India.
  • You can manage your funds as per your investment objectives and risk appetite.
  • You have the option to pay premiums at your convenience.
  • You are eligible to manage your evolving financial priorities with an unlimited free switching facility.
  • Premium Redirection facility is allowed from 1 policy year onwards. Unlimited free premium redirections are allowed throughout the policy term. Redirection is applicable to future premiums but will not affect the existing units.
Free look period

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

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

Grace period

Yearly, Half-yearly & Quarterly premium frequencies – 30 days

Monthly frequency – 15 days

Key Highlights of SBI Life Smart Privilege Plan

Apart from the above benefits and facilities, this plan has also presented a bunch of advantages that have made the plan unique and popular among consumers. Have a look at the following mentions to learn about the special features of this plan.

Loyalty Additions:

In-force policies are rewarded with Loyalty Additions starting from the end of the 6th Policy year and at regular intervals till the end of the selected policy term. Loyalty Additions would be calculated as a percentage of the Average Fund Value over the 1 day of the last 12 policy months prior to the date of allocation of Loyalty Addition. It will be added to fund value after they are unitized based on the unit price on the day loyalty additions are due. For policies that are not in force but revived subsequently, Loyalty Additions would be credited on the date of revival, provided all due premiums have been paid. It will not be applicable for reduced paid-up policies. The percentages of Loyalty Additions are as shown below:

Last day of the policy yearLoyal additionLast day of the policy yearLoyalty addition


The company understands that you may need financial help to sort out your emergency situations. That is why the policy offers you to do partial withdrawal that helps you to meet unexpected financial expenses according to the following ways:

  • Partial withdrawals will be allowed only after the 5th policy anniversary or on the attainment of age 18 years by the life assured, whichever is later.
  • 2 free partial withdrawals in a policy year are allowed. A charge of Rs. 100 per withdrawal in excess of free partial withdrawal will be charged. There is no carry forward of free unused partial withdrawal for future policy years.
  • A maximum of 4 partial withdrawals can be made in one policy year, and not more than 10 partial withdrawals are allowed in the entire policy term in case of a policy term of 10 years or below and 15 partial withdrawals for a policy term above 10 years.
  • The minimum Partial withdrawal amount allowed is Rs. 5,000. Maximum Partial withdrawal allowed is up to 15% of the Fund Value as of the withdrawal request date.
  • Partial withdrawals 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.

Fund Options:

You can invest in any one or combination of the mentioned funds in the Policy Wordings. There are 11 fund options to invest in, and those are as follows:

  • Top 300 Fund – The objective of this fund is to provide long-term capital appreciation by investing in stocks of the top 300 companies in terms of market capitalization on the National Stock Exchange (NSE).
  • 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.
  • Bond Fund – The objective of this fund is to provide relatively safe and less volatile investment options mainly through debt instruments and accumulation of income through investment in fixed-income securities.
  • Equity Optimizer Fund – The objective of this fund is to provide equity exposure targeting higher returns (through long-term capital gains).
  • Bond Optimizer Fund – The objective of this 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% in Equity Instruments.
  • Money Market Fund – The objective is to deploy the funds in liquid and safe instruments to avoid market risk on a temporary basis.
  • Equity Fund – The objective of this fund is to provide high equity exposure targeting higher returns in the long term.
  • Growth Fund – This fund aims to provide long-term capital appreciation through investment primarily in equity and equity-related instruments, with a small part invested in debt and the money market for diversification and risk reduction.
  • 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.
  • Corporate Bond Fund – This fund aims 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.


The company offers the insured a revival period of 3 years from the date of the first unpaid premium, during which you can revive your policy by paying all due premiums without any interest or fee. Revival is subject to the applicable terms and conditions and underwriting acceptance. The underwriting decision would be communicated to you, post which only your cover would re-commence. Revival is applicable for Regular and Limited Premium Payment modes only.


You can surrender your policy at any time during the policy term. Once the policy is surrendered there will be no option to revive the policy. If the surrender is requested any time after the completion of 5 policy years, then the Fund Value will be paid immediately. If surrender is requested during the first 5 Policy years, then

  • The lock-in condition applies.
  • Your Fund Value will be transferred to the “Discontinued Policy Fund’ after the deduction of the applicable discontinuance charge (if any).
  • You will earn a minimum interest rate of 4% p.a. or as prescribed in the prevailing regulation on this Fund.
  • Fund management Charge of the Discontinued Policy Fund shall be deducted. No other charge will be deducted.
  • Risk cover will cease to apply.
  • The Fund Value will be payable on the 1 working day of the 6th policy year.

Additional Allocation:

Additional allocation is applicable for policies purchased by the staff. The following would be the additional allocation:

For a single premium – 2%

For Regular/Limited Premium policies (as a % of premium):

Premium payment termFor RP/LPPT policies
1 to 52.50%
6 onwardsNIL

General Exclusions of the SBI Life Smart Privilege Policy?

Understanding a policy is not completed if you do not go through the exclusions of the policy thoroughly. Therefore, to offer you a comprehensive idea of the policy, and to avoid future complications, here are the exclusions of the SBI Life Smart Privilege Plan.

  • Anything that does not follow the policy’s and company’s terms and conditions will be excluded.
  • If there is any kind of breach of law with criminal intent, the company may take action against you.
  • In case of death of the Life Assured due to suicide, within 12 months from 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 shall be entitled to get the fund value, as available on the date of intimation of death. Further, any charges other than 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 Privilege Plan Work?

After knowing the inclusions and exclusions of the policy in detail, the next important thing to know is how this policy work. For that, here is an example.

Suppose Mr. Dutta, a 36-year-old, Kolkata-based businessman, has bought SBI Life Smart Privilege Plan. let us find out the premium amount he has to pay and the assumed maturity benefit that he is entitled to receive for the given credentials.

Age36 years
Policy term10 years
Premium payment term10 years
Policy typeRegular premium
Premium frequency modeYearly
Sum assured multiplier factor7
Premium payment term option5
Fund distribution

Equity fund – 50%

Balanced fund – 30%

Bond fund – 20%

Sum assuredRs. 70 lakhs
Premium amountRs. 10 lakhs
Maturity benefit (At an assumed rate of returns)

4% – Rs. 1,15,91057

8% – Rs. 1,44,37,484

Frequently Asked Questions

For the monthly mode, up to 3 months’ premiums have to be paid in advance, and renewal premium payment is allowed only through ECS, Credit Card, Direct debit, and SI-EFT.

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

Applicable Partial Withdrawal (APW) equals partial withdrawals, if any, in the last 2 years immediately preceding the death of the Life Assured.

You have the option to return the policy for cancellation, stating the reasons for your objection in writing. The company will refund you the amount that arrived as per the following formula:

Fund Value as on the date of receipt of a valid request, plus the following, which is already deducted (Premium Allocation Charges + Mortality Charges + Corresponding Applicable Taxes).

Minus the following:

(Mortality Charges along with the corresponding applicable taxes, proportionate to the period you were covered + Medical Expenses, if any + Cost of Stamp Duty)

On free-look cancellations –

The units of each Fund will be liquidated at the NAV as follows:

  • If the cancellations request along with the policy document, etc. is received before 3.00 p.m. on any day: Closing NAV of the same day.
  • If the cancellations request, along with the policy document, etc., is received after 3.00 p.m. on any day: Closing NAV of the next business day.

The amount will be paid in a lump sum.

No, a policy loan facility is not available under this policy.

The following charges are applicable for this plan up to a certain limit:

  • Premium allocation charges
  • Fund management charges
  • Discontinuance charges
  • Partial withdrawal charges
  • Switching charges
  • Premium redirection charges
  • Mortality charges

The NAV of the fund will be computed as:

(Market Value of Investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any) divided by {Number of Units existing on Valuation Date (before creation/redemption of units)}