Insurance Plans 303 views March 12, 2020

SBI Life Smart Money Back Gold Plan

SBI Life Smart Money Back Gold Plan is a traditional and participating plan with money back benefits. This plan offers a money-back and bonus facility to the insured. The premiums for this plan is required to be paid throughout the term of the policy and the plan pays specifies percentage of the sum assured in the plan at specified intervals. Being a money-back insurance policy, this plan ensures money back as regular and steady income to the insured.

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Features of SBI Life Money Back Gold Plan

Key features of Money Back Gold Plan offered by SBI Life are as follows:
SBI Life Smart Money Back plan is a participating traditional insurance plan with money back benefits.

  1. The plan offers four ranges of variants to choose the interval of the payment which can be selected by the holder of the policy as per their need. The survival benefits for different variants are paid at different intervals which are a fixed percentage of the sum assured and the remaining percentage of the sum assured will be paid at the maturity of the plan.
  2. Guaranteed survival benefits are also offered under the plan which ranges from 110% to 125% of the basic sum assured under the plan. The survival benefits are paid until the maturity of the plan depending on the variant selected by the policyholder.
  3. The policyholder can choose the term of the plan as per his/her requirement. There are four options which include policy term of 12 years, 15 years, 20 years, and 25 years.
  4. The plan also offers rebates on premiums for higher sum assured in the policy
  5. The plan offers four additional riders which include accidental death benefit rider, term assurance rider, accidental total permanent disability rider and Criti Care 13 non-linked rider
  6. The plan offers money-back options at specified intervals as survival benefits.
  7. On the death of the insured during the term of the plan, the entire sum assured in the plan will be paid along with vested simple reversionary and terminal bonus irrespective of the survival benefits already paid.
  8. There is no loan facility offered in the plan.
  9. The premiums paid for the plan is eligible for deductions from the taxable income up to a maximum of Rs 1 Lakh under section 80C of the Income Tax Act. The maturity benefit received is also free from tax under section 10(10D) of the Income Tax Act.

Eligibility Requirements of SBI Life Smart Money Back Gold Plan

Before buying this plan it is necessary to fulfil the eligibility conditions of the plan. The eligibility requirements of SBI Life Smart Money Back Gold Plan are as follows:

  1. Minimum age required for entry in the plan is 4 years and maximum age for entry in the plan is 58 years for a policy term of 12 years, 55 years for a policy term of 15 years, 50 years for a policy term of 20 years and 45 years for a policy term of 25 years.
  2. Minimum age at maturity is 26 years and the maximum age at maturity is 70 years.
  3. The minimum amount of sum assured in the plan is Rs 75, 000 and there is no maximum limit.
  4. The term of the policy can be 12 years, 15 years, 20 years and up to a maximum of 25 years.
  5. Anyone of the four terms can be selected by the holder of the policy.
  6. The premium payment term of the plan will be equal to the policy term
  7. The minimum amount of premium to be paid is Rs 4,500 and there is no maximum limit for amount of premium.
  8. Premium payment modes include yearly, quarterly, half-yearly and monthly.

Benefits of SBI Life Money Back Gold Plan

Benefits offered by Money Back Gold Plan by SBI Life are as follows:

  1. Death benefit- The insurance company will pay a death benefit to the nominee of the plan on the death of the insured during the term of the plan.
    The death benefit for regular and limited premium mode will be higher of 105% of the total premiums paid by the insured until the date of death or sum assured in the plan on death along with vested simple reversionary bonuses as declared by the company and terminal bonus if any. The sum assured in the plan on death will be higher of basic sum assured or 11 times of the annualised premiums of the plan.
    The death benefit for single premium payment mode will be higher of 1.25 times of the single premium paid or sum assured in the plan on death along with vested simple reversionary bonus declared by SBI Life and terminal bonus if any.
  2. Survival benefit- Survival benefit is paid to the insured in instalments at specified intervals during the plan term except the last survival instalment. The survival benefit is a fixed percentage of the basic sum assured in the plan.
  3. Maturity Benefit- On maturity of the plan, if the insured survives the term of the plan, maturity benefit will be paid to the insured which will be the final survival benefit instalment along with accrued simple reversionary bonuses declared by the insurance company and terminal bonus, if any.
  4. Grace period- The due premiums can be paid by the insured during the grace period of 30 days for yearly, half-yearly or quarterly premium payment frequency. For a monthly premium payment mode, the grace period is of 15 days. The policy will be in force during the grace period but on non- payment of the premium within the grace period the policy will lapse.
  5. Surrender Benefit- After the payment of 3 years premium, the policyholder can receive surrender benefit. The guaranteed surrender value will be 30 per cent of the premiums paid after deducting first year’s premium amount.

Conclusion

SBI Life Smart Money Back Gold Plan is a flexible insurance plan which offers various options to the holder of the policy to select from four variant of options to receive the pay-outs as per their requirement. This plan helps to create wealth with their participating benefits and ensure income to the policyholder at fixed intervals. It is suitable for those who are looking for an insurance plan with the dual benefit of participation in the profits of the insurance company and guaranteed money back benefit.

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