Insurance Plans 316 views March 21, 2020

SBI Life Smart Wealth Builder

SBI Life Smart Wealth Builder Plan is a non-participating unit-linked insurance policy that not only takes care of your insurance coverage needs but also helps to achieve proper investment plans as per your risk profile. Moreover, there are options to choose and switch between 11 fund options. The advantage of guaranteed additions to the fund value helps in the enhancement of your wealth further. It also sets avenues for improving your savings for financial emergencies through a flexible partial withdrawal system.

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Features of SBI Life Smart Wealth Builder Plan:

  1. Flexibility – The flexible 11 fund options help to plan and adjust your investment needs through switching between the various funds.
  2. Financial security- Financial protection can be provided to your family for any uncertain events through sufficient life coverage.
  3. Growth of wealth- The plan offers guaranteed additions to the fund value at the 10th policy year-end and after that at every 5th year, with a maximum of 125% of guaranteed additions available on regular premium plans with a policy term of 30 years.
  4. Liquidity- Partial withdrawals that can be done, on the insured attaining 18 years of age, from the 6th year of the policy provides liquidity for meeting your financial emergencies.
  5. Entry age: Minimum is 7 years; Maximum is 55 years
  6. Maturity age: Minimum is 18 years; maximum is 70 years
  7. Policy Term:
    • Regular premium policy- 12 to 30(both inclusive)
    • Limited premium policy- 12 to 14(both inclusive), 15 to 19 (both inclusive), 20 to 30(both inclusive)
    • Single Premium policy- 5 to 30 years
  8. Premium payment term:
    • Regular premium policy- 12 to 30(both inclusive)
    • limited premium policy- 7, 7/10/12, 7/10/12/15
    • Single Premium policy- Single payment at the commencement of the policy
  9. Premium payment amount:
    • For Regular premium – Minimum is Rs 30,000, Maximum is Rs. 3 lakhs
    • For Limited premium – Minimum is Rs 40,000, Maximum is Rs. 3 lakhs
    • For Single premium- Minimum is Rs.65,000 and Maximum is Rs 3 lakhs
  10. Basic Sum Assured:
    • A policy with Regular and limited premium- 10 x Annualised premium
    • A policy with Single Premium Policy- 1.25 x Single Premium

Benefits of SBI Life Smart Wealth Builder Plan:

  1. Death Benefit- Higher amount among fund value on the date of intimation or sum assured less the partial withdrawals or 105% of total premiums till the date of death less partial withdrawals are paid
  2. Maturity Benefit – At the end of the policy term, a lump sum amount of fund value is paid.
  3. Tax Benefit- Tax benefits can be enjoyed under Section 80C for the premiums paid. The maximum tax deduction available is 10 x Sum assured. A Deduction is available under section 10(10) D on the maturity benefit received.

Plan Options under SBI Life Smart Wealth Builder 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. Top 300 Fund-
    • Equity and equity related instruments: 60%-100%
    • Money market instruments and cash: 0%-40%
    • Risk factor: High
  3. Equity optimizer fund-
    • Equity and equity related instruments: 60%-100%
    • Money market instruments and cash: 0%-40%
    • Debt Instruments: 0%-40%
    • Risk factor: High
  4. Growth Fund-
    • Equity and equity related instruments: 40%-90%
    • Money market instruments and cash: 0%-40%
    • Debt Instruments: 10%-60%
    • Risk factor: medium to high
  5. Balanced Fund-
    • Equity and equity related instruments: 40%-60%
    • Money market instruments and cash: 0%-40%
    • Debt Instruments: 20%-60%
    • Risk factor: Medium
  6. Bond Fund-
    • Equity and equity related instruments: 60%-100%
    • Money market instruments and cash: 0%-40%
    • Risk factor: Low to medium
  7. Money Market fund-
    • Money market instruments and cash: 80%-100%
    • Debt Instruments: 0%-20%
    • Risk factor: Low
  8. Bond optimizer Fund-
    • Equity and equity related instruments: 0%-25%
    • Money market instruments and cash: 0%-25%
    • Debt Instruments: 75%-100%
    • Risk factor: Low to medium
  9. Pure Fund-
    • Equity and equity related instruments: 80%-100%
    • Money market instruments and cash: 0%-20%
    • Risk factor: High
  10. Midcap fund-
    • Equity and equity related instruments: 80%-100%
    • Money market instruments and cash: 0%-20%
    • Debt Instruments: 0%-20%
    • Risk factor: High
  11. Corporate Bond Fund-
    • Corporate Bonds: 70%-100%
    • Government securities: 0%-30%
    • Money Market & Mutual Funds: 0%-30%
    • Risk factor: Low to medium

Surrender of SBI Life Smart Wealth Builder Plan: SBI Life Smart Wealth Builder Plan surrender can be done during the term of the policy. A policy surrendered cannot be revived. There are two situations under policy surrender:

  1. If the policy is surrendered within the first 5 years of the policy- Fund value fewer discontinuation charges are transferred to discontinued policy fund on the 1st working day of the 6th year of the policy. An interest of a minimum 4% p.a is earned. The policy will cease.
  2. If the policy is surrendered after the 5 years of the policy- Policy will cease and immediately fund value is paid.

Discontinuance of SBI Life Smart Wealth Builder Plan:

  1. If discontinuance of policy done during the first 5 years of the policy- On the expiry of grace period of 30 days, the fund value is transferred to discontinued policy fund less the discontinuation charges. The policy cover will cease. The revival of policy possible within 3 years from the date of the first unpaid premium.
  2. If a policy is discontinued after five years- The policy will turn into a reduced paid-up policy having paid-up sum assured. The paid-up sum assured will be calculated as the multiplication of the original sum assured and the total number of premiums paid to the original number of premiums payable.

Exclusion under SBI Life Smart Wealth Builder Plan:

Nominee gets fund value on the date of suicidal death intimation committed by the insured within 12 months of policy purchase or revival.

Conclusion:

SBI Life Smart Wealth Builder Plan is thus the perfect solution for providing financial as well as growth security to meet all your financial needs in any unforeseen eventualities of life.

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