sbi life insurance
SBI Life Smart Scholar Policy

SBI Life Smart Scholar Plan

SBI Life Smart Scholar is a non-participating, individually linked life insurance product for parents who desire to invest in the financial markets to ensure their children’s future. The plan enables you to take advantage of two advantages: market-linked profits on your investments and a life insurance policy to protect your child’s future. Additionally, this plan offers accidental complete and permanent disability benefits as well as accidental death benefits.

Nine distinct fund alternatives, market-linked returns, partial withdrawal liquidity, and loyalty unit additions are all provided by SBI Life Smart Scholar. You should not worry about paying for your child’s education, wedding, or any other life event if you plan and choose sensible scholar SBI-life insurance products. Read on to know more about SBI Life- Smart Scholar’s eligibility criteria, key features and benefits, exclusions, and more.

Eligibility Criteria

Here is the eligibility criteria for SBI Life- Smart Scholar plan.

ParametersDetails
Age

Minimum: Parent (Life Assured): 18 Years, Child: 0 Years

Maximum: Parent (Life Assured): 57 Years, Child: 17 Years

Age at Maturity*

Minimum: Child: 18 Years

Maximum: Parent (Life Assured): 65 Years

Child: 25 Years

Plan TypeLimited Premium up to the policy term / Single Premium
Policy Term

8 years to 25 Years

*Subject to the condition that at maturity, the age of the child should be 18 years or more (last

birthday) and the policy term is at least equal to or greater than the Premium Paying Term (PPT).

Premium Paying
# Term (PPT)

SP or 5 to 25 years

# Subject to the limits of the policy term.

Basic Sum Assured

Limited Premium up to the policy term: 10 x Annualised Premium

Single Premium: 1.25 x Single Premium

Key Features & Benefits of SBI Life Smart Scholar

Here are the potential features and benefits of SBI Life Smart Scholar Plan. 

  1. Grace Period:

Every way of premium payment, except the monthly mode, which allows for a 15-day grace period, allows for a 30-day grace period.

  1. Life Benefit

If the life assured is lost, a lump sum payout equal to the greater of the sum assured or 105% of the premiums paid up until death is given. No money assured is paid in the event of a child’s death. The policy will be terminated and all anticipated benefits, excluding the fund value, will be paid if the child and the life assured pass away during the policy period.

  1. Maturity Benefit

The beneficiary would get the Fund Value that was available on the maturity date upon maturity. If the recipient so chooses, they may also use the Settlement Option to receive the Fund Value over the course of five years following the date of maturity. If the policyholder lives to maturity or dies within the plan’s term, the kid would be the beneficiary. Otherwise, the policyholder would be the plan’s beneficiary.

  1. Policy Termination or Surrender Benefit

After five years have passed, the policyholder may cancel it. When a policy is relinquished before the five-year mark, the fund value less the discontinuation fee is credited to the Discontinued Policy Fund, where it will grow at a minimum rate of 4% annually. The fund value in the Discontinued Policy fund as of that date will be paid to the policyholder when five years have passed. The entire Fund value on the date of surrender is paid without any fees if the insurance is surrendered after 5 complete policy years.

  1. Free Look Period:

You have the right to cancel the policy within 15 days of receiving the policy paperwork if you are unhappy with the terms and conditions, provided there hasn’t been a claim.

  1. Settlement Options

Within five years of maturity, maturity proceeds will be paid in regular installments. The fund value is paid as a lump sum to the legal successor of the life assured in the case of the death of the child or life assured before the conclusion of the settlement period.

  1. Tax Benefits

There are tax incentives available under sections 80C and 10D. The tax benefit will be 10% of the total assured if the premium exceeds 10% of that amount. Owners of policies should speak with their advisors.

Exclusions Under SBI Life Smart Scholar Insurance Plan

Suicide Exclusion:

The nominee or beneficiary of the policyholder shall be entitled to the fund value, as available on the date of intimation of death, if the Life Assured passes away by suicide within 12 months of the date of commencement of the policy or the date of revival of the policy, as applicable.

Additionally, any costs other than FMC collected after the date of death must be added back to the fund value that was available on the day the death was notified.

Exclusion for Accident Benefit:

Death or total and permanent disability resulting from, caused by, occurring during, or as a result of the incidents listed below are not covered:

  • Infection: Any infection that results in death or disability, excluding infections brought on by unintentional external visible wounds.
  • Drug Abuse: Using drugs or alcohol while intoxicated or under the influence of a solvent, unless directed by a licensed medical professional
  • Self-inflicted Injury: intentional self-inflicted harm, which includes wounds sustained during a suicide attempt.
  • Criminal Acts: Life-long participation in illegal or criminal acts to do so.
  • War and Civil Commotion: A civil commotion is a riot, invasion, hostilities, whether or not a war is proclaimed, civil war, rebellion, or taking part in one.
  • Nuclear Contamination: Property contaminated by nuclear fuel materials, accidents involving such materials, or the radioactive, explosive, or hazardous characteristics of such materials.
  • Aviation: Involvement in any flying activity other than as a passenger in an aircraft with a commercial pilot’s license, is guaranteed.
  • Hazardous Sports and Pastimes: Participating in or practicing for any dangerous pastime, pursuit, or race that has not been explicitly declared and accepted by the Company.

How Does the SBI Life Smart Scholar Insurance Plan Work?

Let’s take an example to understand!

Dinesh, a 35-year-old professor, was looking for an insurance plan for his little daughter so she could easily pursue her dreams. After getting many suggestions from friends and searching on the internet, he stumbled upon the SBI Life Smart Scholar Plan and found it a great deal of investment for his daughter.

Daughter AgePolicy TermPremium Payment modeSum AssuredPremium Frequency YearlyMaturity Benefit
5 years20 yearsYearly10 lakhsRs. 1,00,000 for 20 Years

Fund Value at Maturity at an assumed rate of

@4%: Rs. 23,43,641

@8%: Rs. 37,07,729

Frequently Asked Questions

Within two years of the date of the initial unpaid premium, revival is permitted. To reinstate his coverage, the policyholder would have to pay the unpaid premium and any interest the insurer assessed.

Yes, you can renew your expired policy with the SBI Smart Scholar plan. You must make all unpaid premium payments without penalties or interest.

According to the terms and conditions of the company, if you choose a policy term of 10 years or less, you can withdraw money only twice per policy year and five times overall. However, if the policy duration is more than ten years, you may only withdraw money ten times during the entire period.

You can, indeed. The plan provides the option of a partial withdrawal so you can cover unforeseen costs. As long as you have paid all of your initial payments on time, you may use this facility starting with the sixth policy year.

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