Articles 132 views March 12, 2020

SBI Life Smart Income Protect

Smart Income Protect offered by SBI Life is a non-linked life insurance plan. It is a traditional participating plan that offers dual benefits of life insurance cover and steady and regular cash income over a specified period of 15 years. This plan is a mix of savings, protection and regular income.

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Features of SBI Life Smart Income Protect Plan

  1. Smart Income Protect is a savings life insurance policy which is a smart way of investment and life coverage enabling dual benefit. The key features of SBI Life Smart Income Protect are as follows:
  2. This is a participating plan which offers participation benefits in the form of simple reversionary and terminal bonus if any. The bonus is declared at the end of each financial year. The reversionary bonus is paid along with death or maturity benefit.
  3. The policyholder has the option to receive the maturity benefit either in a lump sum amount at once or in monthly instalments. The maturity benefit will be paid if the policyholder survives till the end of the term of the policy
    The policyholder can select the term of the plan which includes 7 years or 12 years or 15 years.
  4. There are four options of premium paying frequency. The policyholder can pay the premiums monthly, yearly, quarterly or half-yearly.
  5. This plan offers flexibility to the insured by offering to choose from four riders options which include accidental death rider, preferred term rider, Criti Care 13 non-linked rider and accidental total and permanent disability benefit rider.
  6. If the insured commits suicide within one year of the beginning of the plan, then 80% of the premium paid for the plan will be refunded to the nominee of the plan.
  7. This plan ensures reliability through regular income paid annually or in instalments
  8. On the death of the insured individual during the pay-out period, the monthly instalments of the maturity benefit will be paid to the beneficiary or nominee of the plan
  9. Loan Facility is not available in this plan and these plans acquire surrender value determined by the insurance company.
  10. This plan is eligible for tax exemption under section 80C and 10(10D) of the Income Tax Act. The returns received regularly are tax-free and the lump- sum benefit received on death is also exempt from income tax under the Income Tax Act.

Eligibility Conditions of SBI Life Smart Income Protect

  1. The plan can be brought only by individuals who satisfy the eligibility conditions of the plan. The conditions that are required to be fulfilled before buying this plan are as follows:
  2. Entry age for the policy term of 7 years is a minimum 11 years of age and a maximum of 58 years of age.
  3. Entry age for the policy term of 12 years is a minimum 8 years of age and a maximum of 53 years of age.
  4. Entry age for the policy term of 15 years is a minimum 8 years of age and a maximum of 50 years of age.
  5. Minimum maturity age is 18 years and maximum maturity age is 65 years.
    The minimum amount of sum assured in the plan is Rs 1 Lakh and there is no maximum amount for sum assured in the plan. However, the sum assured in the plan can only be in multiples of 1000.
  6. The term of the policy can be 7 years, 12 years or 15 years
  7. The pay-out period of the instalment of the maturity benefit is 15 years
  8. The frequency of pay-out is yearly
  9. The premium frequency can be yearly, quarterly, monthly or half-yearly.

Benefits of SBI Life Smart Income Protect

Smart Income Protect is a participating insurance plan which ensures higher returns and better protection and security to the family of the insured. Going by its name this plan ensures smart guaranteed regular income to the insured and his/her family. The key benefits offered by SBI Life Smart Income Protect are as follows:

  1. Death benefit- Death benefit is paid to the nominee or beneficiary of the insurance plan on the death of the insured individual during the term of the plan. The death benefit is higher of 105% of the premiums paid for the plan till death or the basic sum assured in the plan along with simple reversionary bonus as accrued and terminal bonus if any.
  2. Maturity benefit- Maturity benefit will be paid at the end of the term of the plan only if the insured survives this the policy term. The maturity benefit will be the guaranteed sum assured in the plan plus accrued simple reversionary bonus and terminal bonus. The guaranteed sum assured in the plan on maturity will be 110% of the basic sum assured in the plan. If the policyholder opts for receiving the maturity benefit in instalments then 11% of the basic sum assured will be paid at the end of every year for 15 years and the reversionary and terminal bonus will be paid in a lump – sum on the maturity of the plan.
  3. Premium rebate- There are premium discounts offered on high sum assured which provides a rebate on the basic premiums to be paid for the plan
  4. Grace period- The plan has a grace period of 30 days within which the policyholder can pay all the due premiums for the policy. The plan will be in force during the said grace period. However, for monthly premium paying frequency, the grace period is of 15 days.
  5. Freelook period- The policyholder also has an option to cancel the policy during the free look period of 15 days from the date of receipt of the policy documents if the policyholder is not satisfied with the policy or its terms and conditions.

Conclusion

SBI Life Smart Income Protect is a beneficial and smart choice of the life insurance policy. It takes care of the liquidity needs of the policyholder and acts as an additional source of income. These plans are suitable for those who want better returns on their investments and are looking for a savings insurance plan. As the primary objective of this insurance plan is investment along with low risk and higher returns due to participating benefits which increase the returns to a great extent. SBI Life Smart Income Protect plan offers tax-free regular income to the insured and his/her family.

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