Insurance Plans 162 views May 1, 2020

SBI Life Smart Woman Plan is a traditional and participating Endowment Assurance plan. It has been designed in such a way that it helps to cater to the insurance requirements of women. The SBI Life Smart Woman Plan provides today’s women with dual benefits of savings and insurance cover both. This plan is women-centric and provides the opportunity by which women can save for accomplishing their major goals along with having the benefit of life protection cover.

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Basic features of SBI Life Smart Woman Plan

The major features of the SBI Life Smart Woman plan can be summarized below.

  1. The SBI Life Smart Woman plan is a traditional Endowment plan in which the bonus of the plan is determined depending on the performance of the policyholder.
  2. This plan comes in two different variants i.e. Gold plan and Platinum plan.
  3. The Gold plan provides benefits that include life cover, savings, and coverage against female-specific critical illnesses.
  4. The benefits provided by the Platinum plan include life cover, savings, coverage against female-specific critical illnesses
    and various other critical illnesses as well.
  5. The cover provided in case of critical illness depends upon the severity of the stage of illness.
  6. In case of critical illnesses, the SBI Life Smart Woman Plan offers an inbuilt rider i.e. waiver of premium rider.
  7. The level of cover for Death cover and Critical illness cover can be chosen by the policyholder and it would be a multiple of the basic sum assured.
  8. The SBI Life Smart Woman Plan provides premium rebate in case of a large sum assured.

How does the SBI Life Smart Woman Plan work?

  1. The SBI Life Smart Woman Plan provides benefits such as death benefit, maturity benefit, premium waiver benefit, and other participating profits.
  2. The premium for the SBI Life Smart Woman plan has to be paid for the complete term of the plan and the policyholder can choose amongst the Gold or Platinum variant.
  3. The Gold plan offers cover for 5 types of critical illnesses whereas the platinum plan can offer cover for 9 types of critical illnesses.
  4. In addition to the cover for critical illnesses and women-specific illnesses, additional cover can also be purchased for Additional pregnancy complications and congenital anomalies (APC & CA).
  5. On the maturity of the policy, maturity benefits and bonuses are paid to the policyholder.
  6. In case of death of the policyholder during the policy term, death benefit along with bonuses is paid to the nominee of the policyholder.
  7. Also, as mentioned earlier if the policyholder suffers from a critical illness during the policy term Critical illness benefit is payable to the policyholder.

Benefits of the SBI Life Smart Woman Plan

The major benefits provided by the SBI Life Smart Woman Plan can be summarized below.

Death Benefit

If there is the demise of the insured person during the tenure of the plan, then the highest amongst the below-mentioned would be received by the policyholder as the Death Benefit.

  1. The sum assured on death +vested simple reversionary bonus+ if any terminal bonus
  2. 105% of the total premiums that have been paid till death

The Sum assured on death would be the highest among the below-mentioned

  1. The basic sum assured which has been chosen at the commencement of the policy
  2. The absolute amount which was assured to be paid on death which is equivalent to SAMF * Basic Sum Assured

SAMF=Sum Assured Multiplicative Factor which can be 1, 2 or 3.

Maturity Benefit

When the Smart Woman Plan matures, the maturity benefit that would be payable to the policyholder would be equal to

Basic Sum Assured+ the vested reversionary bonus +if any terminal bonus

Critical Illness benefit

For a minor stage of the critical illness, the Smart Woman Plan provides a benefit of 25% of the Critical Illness Sum Assured. In the case of the advanced stage of the illness, 150% of the Critical Illness Sum Assured is provided by the plan. If the critical illness is at its major stage, then 100% of the benefit would be provided to the policyholder.

Critical Illness Sum Assured=SAMF (Sum Assured Multiplicative Factor which can be 1, 2 or 3)* Basic Sum Assured.

Additional Pregnancy Complications and Congenital Anomalies Benefit

This is an optional benefit and can be chosen by payment of an extra premium by the policyholders When this benefit is chosen, then the cover would be provided against any complications arising due to pregnancy. This benefit is equivalent to 20% of the Basic Sum Assured and then would terminate if the benefit is being paid out during the policy term or if the policyholder reaches 45 years of age, whichever is later.

Tax Benefit

  1. The premium that is being paid for the Smart Woman Plan is eligible for tax exemption up to a limit of Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961.
  2. The premiums that are paid for availing the APC&CA benefit are also eligible for tax exemption.
  3. Under Section 10(10D) of the Income Tax Act, 1961 the benefits received i.e. Death Benefit, Maturity Benefit, and Critical Illness Benefit are eligible for tax exemption.

Bonus

The policyholders can receive a Simple Reversionary bonus and terminal bonus. The terminal bonus might be paid on the death, maturity or surrender of the policy whereas simple reversionary bonus is paid on the insurance provider’s performance.

ParametersFY 2017-18FY 2018-19
Net Earned Premium (in Cr)1349.321826.99
Net Claims Incurred (in Cr)9211396.80
Incurred Claims Ratio (in %)68%76%

Eligibility and Premium details of the SBI Life Smart Woman Plan

ParticularsMinimumMaximum
Age of entry18 years
Base Plan=50 years
APC & CA option=35 years
Maturity AgeNA
Base Plan=60 years
APC & CA option=45 years
Policy Term10 years and 15 years
Premium Paying Term10 years and 15 years
Premium Paying FrequencyMonthly, Quarterly, Half-yearly, Yearly or Single premium
Premium PayableMonthly=Rs. 1500
Quarterly=Rs. 4000
Half-yearly=Rs. 7500
Yearly=Rs. 15,000
Depends on the chosen sum assured
Sum AssuredRs. 2 lakhsRs. 10 lakhs

Policy details-SBI Life Smart Woman Plan

Grace Period

For quarterly, half-yearly and annual mode of premium payment, a grace period of 30 days is allowed for the payment of premium. But in case of monthly premium payment, a grace period of 15 days is allowed for the policyholder to pay the premium.

Freelook period

This can otherwise be known as a cooling period which is of 15 days within which the policyholder can review the policy documents and can even cancel the policy if he seems to be dissatisfied with the terms and conditions.

Surrender of policy

The policyholder is eligible for the surrender of the Smart Woman plan only if he has paid the full premium for at least 3 years.

Policy revival

Policyholders can revive their Smart Woman plan within 2 years from the date of the unpaid premium. The policyholder would have to pay the premium that is due and any other interest if charged by the insurance provider.

Loan facility

In the case of the Smart Woman plan, policyholders can avail the facility of loan up to 90% of the surrender value of the plan.

Exclusions of the SBI Life Smart Woman Plan

  1. In case of the death of the policyholder due to suicide within a year of the issue of the Smart Woman plan, the death benefit would not be paid to the policyholder and 80% of the premium would be returned.
  2. In case of suicide of the policyholder within 1 year of issue of the policy, higher among the premium paid till death of the policyholder or the Surrender value that has been acquired will be paid back to the policyholder if the policy is active.
  3. In case of the suicide being committed during the policy tenure, the APC&CA benefit would not be payable to the policyholder.
  4. The Critical Illness benefit is not permissible before a waiting period of 90 days after the starting or revival of the policy. Also, the policyholder would have to survive for 30 days from the date of diagnosis of the critical illness to receive the benefit.
  5. The APC&CA benefit can be availed only after a waiting period of 1 year from the date of commencement or revival of the Smart Woman Plan.

Hence, the SBI Life Smart Woman Plan is a comprehensive insurance plan for women which acts as saving as well as a protection plan. The various benefits and options provided by the plan, help in addressing all the basic financial needs of today’s women.

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