Insurance Plans 188 views March 21, 2020

SBI Life – eWealth Insurance Plan

SBI Life – eWealth Insurance is an affordable online non-participating unit-linked insurance plan with nominal premium charges. This ULIP plan along with covering your family’s future unseen financial needs also offers growth flexibility through its two plan options and liquidity through its partial withdrawal benefits.

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Features of SBI Life – eWealth Insurance Plan:

  1. Flexibility – Balanced & Growth Plan are the two options that are offered among which you can choose that suits your risk appetite.
  2. Affordability- Nominal premium as low as Rs 2,000 is charged without any allocation charges.
  3. Hassle-free purchase- It is easy to purchase this plan through its online purchasing facility.
  4. Entry age: Minimum is 5 years; Maximum is 50 years
  5. Maturity age: Maximum is 60 years
  6. Policy Term: 10 to 30 years
  7. Premium payment:
    • For yearly payment- Minimum is Rs.24,000 and Maximum – There is no Limit
    • For monthly payment- Minimum is Rs.2,000 and Maximum- There is no limit
  8. Basic Sum Assured: 10 x Annualized premium

Benefits received under SBI Life- eWealth Insurance Plan:

  1. Liquidity benefit- When the insured is 18 years old, partial withdrawal can be done from the 6th year of the policy which maintains your liquidity for financing any unforeseen expenses.
  2. Death Benefit- The higher amount between fund value or sum assured after deducting any applicable partial withdrawals during the last 2 years prior to the death of the insured or 105% of the total premium received till the date of death less the applicable partial withdrawals are paid on intimation of death claim to the company.
  3. Maturity Benefit – On maturity of the policy term, a lump sum amount of fund value is received.
  4. Tax Benefit- Tax benefit can be enjoyed under Section 80 C for premiums paid and section 10(10) D on maturity benefit received.

Plan Options available under SBI Life- eWealth Insurance:

  1. Growth Plan- Under this plan, your wealth growth is managed effectively without exerting any extra financial burden on you by investing more in equity during initial policy years with a goal to achieve long term returns. Investment is reallocated by investing more in debt or money market and reducing investment in the equity market towards the end of the policy term.
  2. Balanced Plan- Under this plan, your wealth growth is smartly balanced by investing in the equity market lesser than under the growth plan during the initial policy years and making higher investments in debt or money market funds overall as compared to the growth plan.

Surrender of SBI Life- eWealth Insurance Plan:

Surrender of SBI Life- eWealth Insurance policy can be made any time during the term of the policy. A surrendered policy can no more be revived.

The following amount will be paid on surrender under the following two situations:

  1. If the policy is surrendered within the lock-in period of 5 years of the policy- Fund value fewer discontinuation charges is transferred to discontinued policy fund. The Fund value is paid on the 1st business day of the 6th year of the policy. A minimum interest of 4% p.a will be earned. No more life coverage paid.
  2. If the policy is surrendered after the 5 years of the policy is over- Immediate payment of fund value is made.

Discontinuance of premium for SBI Life- eWealth Insurance Plan:

  1. If policy premium is discontinued during the 5 years lock-in period of the policy- On the expiry of grace period (30 days for the premium paid annually and 15 days for the premium paid monthly) fund value is transferred to discontinued policy fund after deducting the discontinuation charges. The revival of policy possible within 3 years from the date of the first premium discontinuance. In case the policy is not revived then discontinued fund value is paid at the lock-in period end date or the date of surrender of the policy whichever is later.
  2. If policy premium is discontinued after five years- The policy will become a reduced paid-up policy with paid-up sum assured. Calculation of paid-up sum assured will be done as the multiplication of the original sum assured and the total number of paid premiums to the original number of premiums due.

The revival of SBI Life – eWealth Insurance Plan:

The revival of the policy is possible as per applicable terms and conditions within 3 years from the date of the first non-payment of premium by paying all the premiums due. The policy can be revived under the following two situations:

  1. Revival during the lock-in period of 3 years from the date of first unpaid premium- Discontinuation fund will become dis-invested fund amount with addition of any discontinuance charges earlier deducted and deduction of administration charges of discontinuance period. Original life cover is restored, investment options chosen are also restored. Charges applicable are deducted from the date of the policy revival.
  2. Revival after lock-in period- If the policy is revived after 3 years lock-in period, the allocation is done on the basis of NAV as on the revival date. Original life cover is restored and applicable charges deducted from the date of the policy revival.

Exclusions under SBI Life- eWealth Insurance Plan:

Fund value as on the date of intimation of death due to suicide committed by the insured within 1 year of purchase of the policy or revival, is received by the nominee.

Conclusion:

SBI Life eWealth Insurance plan is an organized, hassle-free, economical and efficiently balanced ULIP plan that takes care of enhancement of your wealth which is necessary for sustaining a burden-free financial condition. The plan as you can see smartly allocates your investment into equity and debt keeping in mind your risk-taking ability at different phases of your policy term.

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