Insurance Plans 198 views March 21, 2020

SBI Life Saral Maha Anand Plan

SBI Life Saral Maha Anand Plan is a non-participating unit-linked life insurance plan that offers you twin benefits of investing your money in instruments with growth prospects and traditional benefits of securing life insurance cover for your family by paying affordable flexible premiums and with no hassle of health examinations. Moreover, various rider benefits are provided by this policy that can enhance your cover.

Features of SBI Life Saral Maha Anand Plan:

    1. Flexibility – The three fund options make your plan flexible in allocating investment in various funds as per your risk profile.
    2. Financial security- Security to the financial needs of your family in situations of unforeseen events is provided through sufficient life cover offered by the policy.
    3. Growth of wealth- The plan offers guaranteed additions to the fund value of up to 30% of annualized premium which helps in improving your wealth.
    4. Liquidity- Partial withdrawals from the 6th year of the policy help in meeting your financial requirements.
    5. Entry age: Minimum is 18 years; Maximum is 55 years
    6. Maturity age: maximum is 65 years
    7. Policy Term: 10/15/20 years
    8. Premium payment frequency: Monthly or quarterly or half-yearly or yearly
    9. Premium payment amount:
      • For yearly premium– Minimum is Rs 15,000, Maximum is Rs. 29,000
      • For half-yearly premium – Minimum is Rs 9,500, Maximum is Rs. 14,500
      • For quarterly premium- Minimum is Rs.5,500 and Maximum is Rs 7,200
      • For monthly premium- Minimum is Rs.2,000 and Maximum is Rs 2,400
    10. Sum Assured:
      • Minimum: For age below 45 years- 10 x Annualised premium; For age 45 years or above- 7 x Annualised premium
      • Maximum:For age below 45 years- 20 x Annualised premium; For age 45 years or above- 20 x Annualised premium

Benefits of SBI Life Saral Maha Anand Plan:

  1. Death Benefit- Whichever is higher between fund value on the date of intimation or sum assured less the partial withdrawals made in the last 2 years prior to the death of insured or 105% of total premiums till the date of death is paid.
  2. Maturity Benefit – At the completion of the policy term, a lump sum amount of fund value is paid.
  3. Accidental Death Rider Benefit- In case of death due to accident, an additional death benefit is provided.
  4. Tax Benefit- Tax benefits can be enjoyed under Section 80C for the premiums paid. Deductions are also available under section 10(10) D on the maturity benefit received.

Plan Options under SBI Life Saral Maha Anand Plan:

  1. Equity Fund-
    • Equity and equity related instruments: 80%-100%
    • Money market instruments and cash: 0%-20%
    • Debt Instruments: 0%-20%
    • Risk factor: High
  2. Balanced Fund-
    • Equity and equity related instruments: 40%-60%
    • Money market instruments and cash: 0%-40%
    • Debt instruments: 20%-60%
    • Risk factor: Medium
  3. Bond fund-
    • Money market instruments and cash: 0%-40%
    • Debt Instruments: 60%-100%
    • Risk factor: Low to medium

Surrender of SBI Life Saral Maha Anand Plan: SBI Life Saral Maha Anand Plan can be surrendered during the policy term. A policy once surrendered cannot be revived. Following are the two situations under policy surrender:

  1. If the policy is surrendered within the first 5 policy years – Fund value after deducting discontinuation charges is transferred to discontinued policy fund on the 1st business day of the 6th policy year. An interest of a minimum of 4% p.a is gained. No life cover or rider benefit cover will exist anymore.
  2. If the policy is surrendered after the first 5 policy years- Immediate payment of Fund value is done.

Discontinuance of premium of SBI Life Saral Maha Anand Plan:

You have two options if you discontinue paying premiums of SBI Life Saral Maha Anand Plan:

  1. Complete withdrawal of the policy-
    • If the premium is discontinued in the first 5 years of policy: Fund value less discontinuation charges credited to the discontinued policy. Fund value paid on 1st working day of the 6th year of the policy.
    • If the premium is discontinued after 5 years of policy: Immediate payment of Fund value as on that date is made.
  2. The revival of the policy within 2 years from discontinuance by paying all premiums due. Then the policy plus rider benefits will continue-
    • If the premium is discontinued in the first 5 years of policy: Fund value will be credited to discontinued policy fund less discontinuance charges. If policy revived within 2 years, then the revival procedure applied. But if revival is not made within the revival period then the value of discontinuation fund is paid on 1st working day of the 6th year of the policy.
    • If the premium is discontinued after 5 years of policy: During the revival period the policy will continue with its risk cover and policy administration charges, fund management charges, rider charges, mortality charges will continue to be charged. If revived during the revival period then revival procedure applied. But if not revived within revival period then fund value on revival date or maturity date whichever is first will be paid and policy is over.
  3. Change the policy into a paid-up policy on payment of the full 5year premium.

Exclusion under SBI Life Saral Maha Anand Plan:

Fund value as on the date of suicidal death intimation committed by the insured within 1 year of policy purchase or revival is paid to the nominee. The policy cover and rider benefits cease.

Conclusion:

SBI Life Saral Maha Anand Plan, therefore, takes care of your financial and growth needs with its twin benefits of capital appreciation through market-linked returns and providing financial security through enough life cover. The five year lock-in period of this plan restricts your surrender or withdrawal thoughts which will help you in enjoying the befits of this plan over a longer period.

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