Investment Plans 8396 views March 11, 2020

SBI Life Smart Swadhan Plus

Smart Swadhan Plus plan offered by SBI Life is a non-participating, non-linked term assurance policy that offers the benefit of the return of premium. This plan protects the family of the policyholder financially against life uncertainties. It helps the policyholder meet his/her insurance needs at affordable and low cost and also rewards by returning the premium paid for the plan upon his/her survival till maturity.

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Features of SBI Life Smart Swadhan Plus Plan

Smart Swadhan Plus plan offers various attractive features to its holders and promises to provide them comprehensive financial protection upon unfortunate events. The key features of SBI Life Smart Swadhan Plus Plan are as follows:

  1. This plan offers the dual benefit of protection as well as the return of premium paid by the policyholder for the policy
  2. The plan offers flexibility by proving an option to choose the mode of premium payment which includes single premium, regular premium or limited premium
  3. Policyholders can also choose the term of the policy as per their requirements
  4. The plan offers the insured a rebate for choosing a high sum assured
  5. It does not have a loan facility and surrender value benefit.
  6. Tax benefits- the premiums paid for Smart Swadhan Plus plan are eligible for a tax deduction under Section 80C of the Income Tax Act, 1961. Also, the lump sum benefit received is exempted from the income tax under Section 10 (10D) of the Income Tax Act.
  7. The plan does not have additional riders with it

Benefits of SBI Life Smart Swadhan Plus

Smart Swadhan Plus plan offers numerous benefits that are discussed below:

  1. The benefit of Life Cover- On the death of insured during the term of the policy, the sum assured on death of the insured will be payable to the nominee or the beneficiary of the policy. The death benefit will differ across single premium, limited and regular premium policies. For single premium policies, the sum assured on death will be the highest of 1.25 times the single premium paid, the basic sum assured in the plan and the maturity benefit. For regular and limited premium paying mode, the sum assured on death will be the highest of 10 times the annualized premium paid, the basic sum assured and 105% of premiums paid till death of the insured or maturity benefit.
  2. Maturity benefit – On survival till the term of the plan, policyholders will get 100% of the entire premiums paid by them in a lump sum amount.
  3. Premium Discounts – If you opt for higher sum assured in the plan, the insurance company provides rebates on the premium. This rebate is offered per thousand of the Sum Assured if it is above INR 7.5 lakhs.
  4. Grace Period – The plan offers a 30-day grace period for payment of due premium for all modes of premium payments such as annual, half-yearly or quarterly. However, only for monthly mode of premium payment, the grace period is 15 days. The coverage of the policy would continue to be in force during the grace period.

Eligibility Conditions of SBI Life Smart Swadhan Plus

It is important to fulfil the eligibility requirements before you can buy a Smart Swadhan Plus plan. The eligibility requirements of SBI Life Smart Swadhan Plus plan are as follows:

  1. Minimum age required for entry is 18 years and maximum age for entry in the plan is 65 years
  2. The maximum maturity age for the plan is 75 years
  3. Types of plans include single premium payment plan, regular premium payment plan and limited premium payment plan
  4. Minimum term of the policy is 10 years and the maximum term of the policy is 30 years
  5. The term of premium payment for single premium plan is a one-time payment, 5 years, 10 years and 25 years for a limited premium, and for a regular premium, the plan is as same as the term of the policy.
  6. The frequency of premium payments includes Single, yearly, semi-annually, quarterly and monthly. However, for monthly premium payment mode, the premium for three months is to be paid in advance.
  7. The premium for renewal of the plan can be paid only through the system of electronic clearing and by making standing instructions.
  8. The loading of premium frequency for semi-annually is 52% of the annual premium. For quarterly, the loading is 26.5% of the annual premium and 8.9% for a monthly frequency.
  9. The minimum premium to be paid under Single premium payment option is INR 21000, for yearly basis is INR 2300, for half-yearly basis is INR 1,200, for a quarterly basis, is INR 650 and for monthly basis is INR 250 and there is no maximum limit.
  10. The minimum sum assured in the plan which can be only in multiples of INR 1000 is INR 5,00,000, and there is no maximum limit for sum assured in the plan

Conclusion

SBI Life Smart Swadhan Plus plan is a term plan which offers a return of premium benefit on the maturity of the plan along with coverage at affordable and reasonable insurance cost. With various options of premium payment, flexibility, as well as rebates on the high sum, Assured Smart Swadhan Plus Plan is a good option for individuals to secure the financial future of their family. Hence SBI Life Smart Swadhan Plus plan is mainly suitable for those who are seeking proper financial protection for their family against any future uncertainties. It can be brought by individuals who are looking for an insurance policy which pays back the premiums paid for the policy at the end of the insurance plan as maturity benefit for surviving the entire policy term. Smart Swadhan Plus plan offered by SBI Life can be purchased anytime by anyone of 18 years of age to up to 65 years of age. However, it is recommended to purchase a term insurance policy when a person is young to get maximum coverage at a low and affordable cost.

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