SBI Life Smart Swadhan Plus Plan
SBI Life Smart Swadhan Plus plan is a non-linked, individual, non-participating, life insurance and savings plan with a Return of Premium feature, which would safeguard your family’s financial future in the event of the life insured’s untimely death. This policy provides a maturity sum assured and refunds of basic premiums paid up until the policy’s maturity, in addition to satisfying the policyholder’s insurance needs. To know more about the policy, continue reading!
Eligibility Criteria
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | For POSPs: 55 Years, For Other Channels: 65 Years |
| Maximum Age At Maturity | For POSPs: 65 Years, For Other Channels: 75 Years |
| Policy Term | 10 To 30 Years |
| Basic Sum Assured | Rs. 5 Lakhs To No Limit |
| Premium Payment Options | SP, LPPT-5, LPPT-10, LPPT-15, RP |
Prominent Attributes Of SBI Life Smart Swadhan Plus
The plan comes with the following features:
- Grace Period: If you miss the deadline for paying the premium, you have a grace period of 15 days for monthly payments and 30 days for annual and biannual payments to make the payment without incurring interest. The insurance will expire if the premium is not paid during the grace period.
- Revival: The policy may be reinstated within two years following the initial unpaid premium date. You must show proof of insurability and pay all premiums until the reinstatement date to reinstate the policy.
- Surrender: Only after paying a minimum of 2 full years’ premiums for the LPPT 5 plan and 3 full years’ premiums for the RP, LPPT 10, and LPPT 15 plans will the policy earn surrender value.
- Free Look Period: You have 15 days from the time you receive the policy document to study the terms and conditions. You can return the policy and request a refund if you find the terms and conditions disagreeable. The reimbursement sum will be provided following some withholdings. You have 30 days to study the terms and conditions for insurance plans purchased through distance marketing.
- Participation In Profits: This plan does not participate in the profits of the company.
- Nomination & Assignment: As per Sections 38 and 39 of the Insurance Act of 1938, the policy allows nomination and assignment.
- Loan Facility: The policy does not provide a loan facility to the policyholder.
Why Should You Consider Buying SBI Life Smart Swadhan Plus Plan?
Although there are many reasons why you should purchase the SBI Life Smart Swadhan Plus plan, some of them are discussed below:
Life Cover Benefit:
In the tragic event that the life assured passes away, the beneficiary would get the Sum Assured on Death. For single premium plans, the Sum Assured on Death is the greater of the Basic Sum Assured, 1.25 times the single premium, or the maturity benefit. For LPPT or Regular Premium plans, the Sum Assured on Death is equal to the greater of the Basic Sum Assured, 10 times the Annualised Premium, maturity benefit, or 105% of all premiums paid up until death.
Maturity Benefit:
If you live to maturity, you get 100% of the total premiums you paid for the policy wherein, disregarding any additional premiums, the entire premiums paid are equal to the total premiums received and corresponding taxes.
Tax Benefits:
You may be eligible for tax advantages under SBI Life Smart Swadhan Plus for the following:
- Premiums paid in accordance with Section 80C of the 1961 Income Tax Act. The highest tax deduction allowed is 10 times the sum assured.
- Section 10(10 D) of the Income Tax Act of 1961 governs maturity proceeds. The highest tax deduction allowed is 10 times the sum assured. Benefits from death are entirely tax-free.
Discounts:
There are discounts for tabular premiums depending on the following slabs known as large sum assured discounts. It applies to all premium frequencies for LPPT/RP plans.
| Basic Sum Assured | Rebates Per Thousand BSA | ||||
| SP | LPPT-5 | LPPT-10 | LPPT-15 | RP | |
| >= 7,50,000 < 10,00,000 | 2.00 | 0.45 | 0.40 | 0.30 | 0.30 |
| >= 10,00,000 < 15,00,000 | 4.00 | 1.10 | 0.80 | 0.60 | 0.60 |
| >= 15,00,000 < 25,00,000 | 6.00 | 1.75 | 1.20 | 1.00 | 0.90 |
| >= 25,00,000 < 35,00,000 | 7.50 | 2.20 | 1.50 | 1.25 | 1.20 |
| >= 35,00,000 < 50,00,000 | 8.25 | 2.40 | 1.70 | 1.40 | 1.30 |
| >= 50,00,000 | 8.90 | 2.60 | 1.85 | 1.50 | 1.40 |
In addition, employees, retired employees, VRS holders, minor children, and spouses of employees of SBI Life Insurance Co. Ltd. and State Bank of India, as well as RRBs sponsored by State Bank of India and subsidiaries of the StateBank group, are eligible for staff discounts and rebates. For more details, you can refer to the policy brochure.
How Does SBI Life Smart Swadhan Plus Plan Function?
Let’s imagine Mr. Kumar, 40 years old healthy male, who purchases the SBI Life Smart Swadhan Plus plan. The details of the plan are as follows:
- Policy Term: 15 Years
- Premium Frequency: Yearly
- Premium Payment Term: 5 Years
- Sum Assured: Rs. 10 Lakhs
- Basic Sum Assured: Rs. 23,850 Per Annum
In case the insured dies in the 8th policy year.
The insured will pay a total premium of Rs. 1,19,250 for the first 5 years. In case Mr. Kumar dies in the 8th policy year, his nominee will receive a death benefit, which is 100% of SA in a lump sum, i.e., Rs. 10 lakhs.
In case the insured survives the policy years.
In case Mr. Kumar survives the policy years of 15, he will receive a maturity benefit, which is Rs. 1,19,250.
What’s Not Covered Under SBI Life Smart Swadhan Plus Plan?
Suicide-related deaths are not covered by SBI Life Smart Swadhan Plus within a year of the policy’s start date or renewal date. All benefits provided by the policy end in this situation, with the exception of these:
- If a person commits suicide within a year of the policy’s start date, the nominee will get 80% of the premiums paid.
- If a nominee commits suicide within a year of the policy is revived, the nominee will be paid the greater of 80% of premiums paid or the surrender value.
Frequently Asked Questions
The premium payments terms of the SBI Life Smart Swadhan Plus plan are as follows:
- Single Payment
- 5 Years
- 10 Years
- 15 Years
- Same As Policy Term
The premiums for the plan can be paid on a single, yearly, half-yearly, quarterly, or monthly basis.
The premium loading frequencies of the plan are as follows:
Half-Yearly: 52.00% of Annual Premium
Loading Quarterly: 26.50% of Annual Premium
Monthly: 8.90% of Annual Premium
No. There are no riders available with the plan.
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