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Investment Plans 6799 views March 27, 2020
The State Bank of India’s life insurance wing known as SBI Life has numerous insurance products to satisfy the insurance needs of its customers at various stages of life. SBI Life is one of the leading and largest insurance providers in India offering innovative insurance plans to its customers. One such important insurance plan is the SBI Life Smart Scholar designed to meet the financial needs of the child’s future.
Table of Contents
What are unit-linked plans?
Unit-linked plans as the name suggest are the capital market-linked insurance products designed to offer two-fold benefits to its customers. the two benefits offered by unit-linked plans are insurance coverage and market-linked returns on the invested money. Market-linked insurance plans have a higher potential of delivering higher returns on the invested money.
SBI Life Smart Scholar Plan
The SBI Life Smart Scholar plan is a unit-linked, non-participating child plan that offers an opportunity to the parents to create a corpus to satisfy the future financial needs of children along with market-linked returns on the invested money and life cover. The plan is specially designed for individual customers to grow their wealth and secure the child’s future dreams. This plan will ensure that your child is financially protected from all the unseen and forthcoming uncertainties of life. SBI Life Smart Scholar plan, being a unit-linked plan, comes with a 5 year lock-in period wherein the policyholder will not be able to completely or partially, surrender or withdraw the invested money from the plan.
Features of SBI Life Smart Scholar Plan
- The plan offers lump sum amount at the end of the tenure of the policy i.e. on the maturity date
- Premium waiver benefit is available in the event of any eventuality to the policyholder
- The plan offers loyalty additions at specific durations, provided the policy is in force
- Inbuilt Premium Payor Waiver Benefit
- Nine fund options are available under the plan that helps in maximizing the savings
- Partial withdrawal of funds from the plan is available by the end of 5th policy year i.e. from 6th policy year
Benefits of SBI Life Smart Scholar Plan
- Maturity Benefit of Smart Scholar Plan:
In the event of survival of the policyholder through the policy tenure, maturity benefit shall be payable. Under Smart Scholar Plan, a lump sum maturity benefit equivalent to the fund value shall be paid to the policyholder. - Death Benefit of Smart Scholar Plan:
Death Benefit is paid to the nominee in the event of the death of the policyholder. Under Smart Scholar Plan, In the event of the death of the life assured, the death benefit is paid as under:- A lump sum death benefit, equivalent to the higher amount of the basic sum assured or 105% of the total premiums paid
- even after the unfortunate death of the policyholder, the policy will continue and all the future premiums shall be waived off. All these waived off premium amount shall be paid by SBI Life and all the accumulated fund shall be paid to the nominee on the maturity date
- In the event of death due to accident or accidental total and permanent disability, SBI Life shall pay additional benefit equivalent to accident benefit sum assured.
- Tax Benefit of Smart Scholar Plan:
All the premiums paid towards the policy premium is eligible for Income Tax Benefit up to Rs 1.5 lakhs per annum under section 80C of the Income Tax Act and the maturity benefit would be tax-free under section 10(10)D of the Income Tax Act provided the sum insured is at least 10 times the annual premium for all the years.
The flexibility of Smart Scholar Plan: - The plan offers flexibility to the investor to opt for the choice of fund to invest their money and ripe the benefits.
- Liquidity of SBI Life Smart Scholar Plan:To meet unforeseen or unexpected expenses, the policyholder can make partial withdraw money from the policy after completion of 5 policy years.
Eligibility Conditions for SBI Life Smart Scholar Plan
| Eligibility Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | Child: 0 Years; Adult: 18 Years | Child: 17 years; Adult: 57 Years |
| Maximum age at maturity | Child: 18 Years | Child: 25 years, Parent: 65 Years |
| Policy Tenure | 8 years to 25 Years |
|
| Premium Paying Term | For limited premium policies minimum: 5 years and maximum: 25 Years depending upon policy term; or Single-Premium |
|
| Premium payment frequency | Single-Premium, Monthly, Quarterly, Half-yearly, Annually | |
| Plan Type | Single-Premium Plan or Limited Premium Plan | |
| Basic Sum Assured | For Single Premium Plan: 1.25 * the amount of single premium For Limited Premium plan: 10 * the annualized premium up to the policy term |
FAQ’S
Who should buy SBI Life Smart Scholar Plan?
Smart Scholar Plan is one of the best child plans offered by SBI Life insurance company. This plan is best for any individual or parents looking for market-linked investment planning for the future of their children. This plan is specifically designed to secure the child’s educational needs and to protect their future in the event of uncertainties.
When should you buy SBI Life’s Smart Scholar Plan?
Smart Scholar being a child insurance plan, it is best to buy the plan before the child attains 17 years of age. However, investing in market-linked plans is beneficial if the investment is done at the earliest as market-driven plans tend to offer a higher return in the long run.
Documents required for buying Smart Scholar Plan?
The prospective policyholder needs to submit the following documents to buy SBI Smart Scholar Plan
- Copy of ID Proof
- Copy of Address Proof
- Copy of Income Proof
- Copy of Age Proof
Conclusion
SBI Life Smart Scholar Child Plan is one of the best comprehensive insurance coverage policies offered by SBI Life to secure the child’s future education needs and to secure them financially in the event of any uncertainty.