SBI Life Smart Wealth Builder Plan
SBI Life Smart Wealth Builder is a popular unit-linked insurance plan which aims to provide for every requirement of the policyholder through wealth maximization. The policyholder receives two benefits from SBI Life Smart Wealth Builder: insurance and investment. The policyholder decides which funds to invest in, and returns are determined by the current state of the market. This product is specifically made to help you achieve your life goals, such as caring for your elder years or ensuring that your children receive higher education and get married.
Read on to know more about SBI Life Smart Wealth Builder’s eligibility criteria, features & benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for SBI Life Smart Wealth Builder.
|Parameters||Plan Type||Policy Term (Years)||Premium Payment Term (Years)|
Payment Term (LPPT)
Minimum Age- 2 Years
Maximum Age- 55 Years
|Age at Maturity|
Minimum- 18 years
Maximum- 70 Years
Term (PPT) and
|Regular Premium||12 to 30 (both inclusive)||Same as policy term|
Payment Term (LPPT)
12 to 14 (both inclusive
15 to 19 (both inclusive)
20 to 30 (both inclusive)
|Single Premium||5 to 30 years|
One time payment at
|Basic Sum Assured|
Regular Premium & Limited
Premium Payment Term
|10 X Annualized Premium|
|Single Premium||1.25 X Single Premium|
Key Features & Benefits of SBI Life Smart Wealth Builder
- Policy Termination or Surrender Benefit: After five years have passed, the policyholder may cancel it. When a policy is relinquished earlier than the required five years, the fund value less the discontinuation fee is credited to the Discontinued Policy Fund, where it earns a minimum of 4% each year. growth. The fund value in the Discontinued Policy fund as of that date will be paid to the policyholder when five years have passed.
- Free Look Period: SBI life insurance offers the option to cancel the policy within 15 days of receiving the policy documents, as long as there hasn’t been a claim, if you’re unhappy with the coverage, terms, or conditions of the policy.
- Maturity Benefit: At the end of the policy term, the policyholder will get the total fund value.
- Policy Surrender: The Fund Value will be moved to the Discontinued Policy Fund once the discontinuance fee has been subtracted if the policy is surrendered at any point prior to the end of the five-year policy term. A minimum guaranteed interest rate of 4% per year will be earned by the fund. The Discontinued Policy Fund’s fund management fee will be subtracted. Life Cover cannot be paid. On the first working day of the sixth policy year, the Fund Value will be paid. Upon receipt of Fund Value, the Policy will expire. After the fifth policy year, if the policy is surrendered, the Fund Value will be paid out right away.
- Death Benefit – A minimum of 105% of all basic premiums paid up to the date of death notification, or the higher of the fund value or Sum Assured, is payable in the event of the policyholder’s death.
- Switching Option: The 11 funds that are now offered can be switched between to accommodate shifting investment requirements. The bare minimum for a move is Rs. 5,000. A policy year allows for two cost-free switches. For every switch that costs more than a free switch during the same policy year, there will be a fee of Rs. 100. Free switches that are not used cannot be carried over.
- Tax Benefit: According to the relevant income tax regulations in India, which are subject to change from time to time, you could qualify for income tax benefits or exemptions.
- Revival: After the first delinquent premium date, the firm will grant you a three-year revival window during which you can reinstate your policy by making all required premium payments. The necessary terms and conditions and underwriting approval must be met for revival. You would be informed of the underwriting decision, after which just your cover would resume. Only the Regular and Limited Premium Payment modes are eligible for Revival.
What Things Are Excluded From SBI Life Smart Wealth Builder?
The nominee or beneficiary of the policyholder shall be entitled to the fund value, as available on the day of intimation of death, in the event that the life guaranteed dies 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 that are collected after the date of death must be added back to the fund value that was available on the day the death was notified.
How Does the SBI Life Smart Wealth Builder Plan Work?
Let’s take an example to understand!
Mr. Anurag Kashyap is a serviceman by profession, and a 35-year-old engineer looking to meet his increasing liabilities and meet his short-term financial goals and secure his family with SBI Life Smart Wealth Builder Plan. After getting many suggestions from friends and searching on the internet, he stumbled upon this plan and found it a great deal of investment.
|Policy Term & PPT||Plan Type||Annualized Premium Amount||Sum Assured||Premium||Maturity Benefit|
|30 years||Regular||Rs. 50,000 p.a.||Rs. 5,00,000||Rs. 5,00,000|
Fund Value at Maturity at assumed rate of:
4%: Rs. 21,74,877
8%: Rs. 42,95,463
Frequently Asked Questions
Every partial withdrawal in excess of the first free partial withdrawal within the same policy year will incur a fee of Rs. 100. The money will be recouped through unit cancellation. Free unused partial withdrawals cannot be carried over to the following policy year.
Starting with the sixth policy year or when the life assured reaches the age of 18, whichever comes first, partial withdrawals are permitted.
Yes, starting with the second policy year, the premium Redirection feature is available. The premium redirection service is free.