Insurance Plans 733 views March 21, 2020

SBI Life – Smart Privilege Plan

SBI Life- Smart Privilege is a non-participating unit-linked insurance plan that is specifically designed for HNI’s that along with providing coverage during eventualities also offers eleven variety of fund options and opportunities for wealth creation depending on the risk-taking ability and long-term goal of the investors along with advantages of switching and premium redirection.

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Features of SBI Life- Smart Privilege:

  1. Entry age:
    • Regular or limited premium policies: Minimum is 8 years; Maximum is 55 years
    • Single Premium policies: Minimum is 13 years; Maximum is 55 years
  2. Maturity age: Minimum is 18 years; Maximum is 70 years
  3. Policy Term:
    • Regular premium policy- 10 to 30(both inclusive)
    • Limited premium policy- 10 to 30(both inclusive)
    • Single Premium policy- 5 to 30 years
  4. Premium payment term:
    • Regular premium policy- Similar to the policy term
    • limited premium policy- Minimum is 5 years; Maximum is 1 year less than policy term
    • Single Premium policy- One-time payment at the beginning of the policy
  5. Premium payment amount:
    Regular or limited premium –

     

    • Minimum is yearly Rs 6,00,000; half-yearly Rs 3,00,000; quarterly Rs 1,50,000; monthly Rs 50,000.
    • Maximum: There is no Limit

    Single premium- Minimum is Rs.6,00,000 and Maximum- There is no limit

  6. Basic Sum Assured:
    • Regular and limited premium policy- 10 x Annualised premium
    • Single Premium Policy- 1.25 x Single Premium

Benefits of SBI Life- Smart Privilege:

  1. Flexibility benefit- Option of free switching between 11 different funds available. Moreover, the premium redirection option is also available.
  2. Reliability Benefit- The Advantage of loyalty additions from the 6th year of the policy is offered.
  3. Liquidity benefit- Liquidity enhancement is offered to take care of unseen financial needs through partial withdrawals from the 6th year of the policy or 18 years of the life assured attained whichever is later. Moreover,
  4. Death Benefit- Higher of fund value or sum assured less the 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, is paid on intimation of death claim sent to the company.
  5. Maturity Benefit – At the end of the policy term, a lump sum amount of fund value is received.
  6. Tax Benefit- Tax benefit can be enjoyed for the premium paid under Section 80 C and for benefits received under section 10(10D).

Investment Fund Options available under SBI Life- Smart Privilege:

  1. Top 300 fund-
    • Equity and equity-related instruments: 60%-100%
    • Money market instruments and cash: 0-40%
    • The risk involved: High
  2. Balanced Fund-
    • Equity and equity related instruments: 40%-60%
    • Money market instruments and cash: 0%-40%
    • Debt Instruments: 20%-40%
    • Risk involved: Medium
  3. Bond Fund-
    • Debt instruments: 60%-100%
    • Money market instruments and cash: 0%-40%
    • The risk involved: Low to medium
  4. Equity Optimizer fund- It provides higher returns through equity investments. Its investment plan is:
    • Equity and equity-related instruments: 60%-100%
    • Money market instruments and cash: 0-40%
    • Debt Instruments- 0%-40%
    • The risk involved: High
  5. Bond Optimizer fund-
    • Equity and equity related instruments: 0%-25%
    • Debt Instrument: 75%-100%
    • Money market instruments and cash: 0-25%
    • The risk involved: low to medium
  6. Money Market fund-
    • Debt instruments: 0%-20%
    • Money market instruments and cash: 80%-100%
    • Risk involved: low
  7. Equity fund-
      • Equity and equity related instruments: 80%-100%
      • Debt Instruments: 0%-20%
      • Money market instruments and cash: 0%-20%

    Risk involved: High

  8. Growth Fund-
    • Equity and equity related instruments: 40%-90%
    • Debt Instruments: 10%-60%
    • Money market instruments and cash: 0%-40%
    • Risk involved: Medium to High
  9. Pure Fund-
      • Equity and equity related instruments: 80%-100%
      • Money market instruments and cash: 0%-20%

    The risk involved: High

  10. Midcap fund-
    • Equity and equity related instruments: 80%-100%
    • Debt Instruments: 0%-20%
    • Money market instruments and cash: 0%-20%
    • Risk involved: High
  11. Corporate Bond Fund-
    • Corporate bonds: 80%-100%
    • Government Securities: 0%-30%
    • Money market instruments and cash: 0%-30%
    • The risk involved: Low to medium

Surrender of SBI Life- Smart Privilege: Surrender of SBI Life- Smart Privilege policy can be made any time during the term of the policy.

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

  1. If the policy is surrendered within the 5 years lock-in period of the policy- fund value is transferred to discontinued policy fund less surrender charges. Remaining benefits cease.
  2. If the policy is surrendered after 5 years of the policy- Surrender proceeds or discontinued fund value paid without any surrender charges on the 1st day of the 6th policy year.

Discontinuance of premium for SBI Life- Smart Privilege:

  1. If policy premium is discontinued within the 5 years lock-in period of the policy- fund value is transferred to discontinued policy fund fewer discontinuation charges. The revival of policy possible within 2 years from premium discontinuance. In case the policy is not revived then discontinued fund value is paid on 1st day of the 6th policy year.
  2. If policy premium is discontinued after five years- The revival of policy can be done within 2 years. The policy will continue with its benefits until maturity.
  3. Fund value on the date of maturity is received.

Exclusions under SBI Life- Smart Privilege:

Fund value, on the date of intimation of suicide committed by the insured within 1 year of policy purchase or revival, is paid to the nominee. No other benefits will remain anymore.

Documents required for buying SBI Life- Smart Privilege:

  1. Income proof
  2. KYC documents (age proof, ID proof, address proof)
  3. PAN card
  4. Application form

Conclusion:

SBI Life- Smart Privilege plan is, therefore the perfect SBI ULIP plan that can take care of your wealth expansion through the investment of premiums in its huge variety of fund options, at the same time secure your family’s unforeseen financial needs through life coverage and also makes provision for your liquidity requirements through withdrawal benefits.

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