Insurance Plans 384 views March 27, 2020

SBI Life Smart Elite Plan

State Bank of India the leading banking institution in India has introduced various insurance plans for its customers through its insurance business arm. SBI Life Insurance Company, a joint venture between State Bank of India and BNP Paribas Cardif, is a leading insurance provider in India. the company offers a wide range of insurance plans to satisfy the insurance needs of its customers. SBI Life since its inception in 2001, has been offering top-notch insurance plans offering benefits like wealth generation and insurance.

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What are Unit-Linked Insurance Plans?

Unit-Linked Insurance Plans commonly known as ULIPs are market-linked insurance plans that offer wealth creation opportunities along with insurance coverage. Under ULIPs, a part of the premium amount is invested in market-linked investments like equity funds, debt funds, balanced funds, etc. through various fund options available under the plan. The customer has an option to choose the fund type depending upon their risk appetite and investment goals. ULIPs offer the best results when the investment is done for a longer tenure.

Details about SBI Life Smart Elite Plan

SBI Life Smart Elite Plan is designed to offer opportunities to individuals to propel their wealth creation opportunities. This plan is designed for individuals seeking a life insurance plan that allows them to maximize their savings. The SBI Life Smart Elite plan is a market-linked insurance plan exclusively designed for high-net worth individuals. This plan gives higher control to high-net-worth individuals by allowing them an opportunity to manage their funds and investment portfolio. Like all other ULIPs, SBI Life Smart Elite Plan comes with a 5 year lock-in period. During the lock-in period, the policyholder can neither withdraw the money nor they can surrender the policy.

Features of SBI Life Smart Elite Plan

The plan is designed to offer insurance coverage along with wealth-creation opportunities. The plan offers the following exclusive features to high net-worth individuals:

  1. The plan comes in two protection options namely ‘Gold Option’ and ‘Platinum Option’
  2. The plan offers an in-built Accidental Benefit Cover
  3. The plan offers 2 premium payment options to the policyholder namely Limited Premium payment option and Single premium payment option
  4. A policyholder has the freedom to choose, switch and redirect their investments in various funds
  5. A policyholders can avail partial withdrawal facility after completing 5 policy year i.e. liquidity in form of partial withdrawal is available from 6th policy year
  6. The plan offers financial security to the family in the event of the death of the policyholder
  7. Tax Benefit under the income tax act is available under the policy

Benefits of SBI Life Smart Elite Plan

The plan offers the following exclusive benefits to the policyholder:

  1. Maturity Benefit of Smart Elite Plan:  Maturity Benefit refers to the benefits received by the policyholder at the end of the policy tenure. Under this plan, the policyholder receives the fund value on completion of the policy term. However, the maturity benefit is applicable only if the policy is in-force.
  2. Death benefit of Smart Elite Plan:  Death benefit is payable to the nominee in the event of the death of the policyholder. Under this plan, the death benefit is paid as under:
    1. For Gold Option: Higher of – the sum assured or fund value is paid to the nominee subject to a minimum benefit of 105% of total premiums received up to the date of intimation of the death claim.
    2. For Platinum Option: Higher of – Fund value + Sum Assured or 105% of total premiums receives up to the date of intimation of the death claim.
  3. In-Built Benefit of SBI Life Smart Elite Plan:  The plan offers in-built benefits to the policyholder. In the event of an Accidental Death or Accidental total and permanent disability, the plan provides basic sum assured. The death benefit and in-built benefit can be taken by the nominee in a lump sum or as per settlement option.
  4. Settlement Option of Smart Elite Plan: The plan offers a settlement option to the nominee or beneficiary or legal heir. Under the settlement option, the death benefit can be received by the nominee or beneficiary or legal heir in instalments spanning across 2 years to 5 years. The settlement can be received in yearly / half-yearly / quarterly / monthly pay-outs.  The settlement pay-outs shall start from the date of the death of the policyholder. Kindly note, being a market-linked insurance plan, the investment risk associated with the investment portfolio during the settlement option tenure shall be borne by the nominee / beneficiary or legal heir.
  5. Tax Benefits of SBI Life Smart Elite Plan: The policyholder can avail tax benefits under the income tax act on the premium amount paid for the premium paid till Rs 1.5 lakhs per annum under section 80C of the Income Tax Act. Even the maturity benefit is tax free Under Section 10(10)D of the Income Tax Act provided the sum insured is at least 10 times the annual premium of the plan.

Eligibility Criteria of SBI Life Smart Elite Plan

Eligibility CriteriaMinimumMaximum
Age at Entry18 years60 years
Age at Maturity-65 Years
Policy Tenure5 years20 years
Premium Paying Term5 Years10 years
Premium Payment FrequencyFor Single Premium Policies: Single
For Limited Premium Policies: Yearly / Half-Yearly/ Quarterly or Monthly
Plan TypeSingle Premium Policy or Limited Premium Policy

FAQ’S

Who should buy SBI Life Smart Elite Plan?

Smart Elite Plan is suitable for investors who are looking for market-linked wealth creation opportunities. The plan offers flexibility to create wealth by investing the money in various funds depending upon one’s financial goals. 

When to buy SBI Life Smart Elite Plan?

An individual between 18 years to 60 years of age group can buy the Smart Elite Plan. However, buying the plan early can ensure long-term investment thereby boosting the wealth creation opportunity. The plan offers various funds which can be utilized to boost the investment portfolio as per one’s investment goals, market conditions, and risk appetite.

Documents required for buying SBI Life Smart Elite Plan

An individual intending to buy Smart Elite Plan has to submit the following documents:

  1. A duly filled proposal form
  2. Copy of Identity Card
  3. Copy of Address Proof
  4. Copy of Age Proof
  5. Copy of Income Proof
  6. Recent Colour Passport Sized Photograph

Conclusion:

SBI Life Smart Elite Plan is the best market-linked plan offering dual benefit of insurance coverage and wealth creation. High Net-Worth Individuals looking for insurance coverage along with wealth building instruments can surely choose this

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