Smart Guaranteed Savings Plan offered by SBI Life is a traditional savings insurance policy which enables the holder of the policy to save a sum systematically for a specified period of time and receive the reward along with guaranteed additions which are paid at the end of every policy year.
These plans on maturity, pay the holder of the policy the vested simple reversionary declared by the company time to time along with with Terminal Bonus if any. In addition to this, the holder of the policy also receives pay-outs which are equal to 11% of the basic sum assured in the plan on yearly basis for the next 15 years after the maturity of the plan.
Features of SBI Life Smart Life Guaranteed Savings Plan
Being a savings oriented insurance plan, smart guaranteed savings plan enables savings for a specified period of time and then these savings are given as pay-out for a specified period of time. The key features of SBI Life Smart Guaranteed Savings plan are as follows:
- The plan has a limited term of premium payment which is 7 years.
- The plan pays a death benefit to the nominee of the plan on the death of the insured during the term of the plan along with simple accrued reversionary bonuses as declared by SBI Life and terminal bonus if any.
- If the insured individual survives the term of the plan, then maturity benefit is paid to the insured along with simple accrued reversionary bonuses and terminal bonus, if any.
- Smart guaranteed savings plan offers guaranteed additions to the holder of the policy at the end of every policy year
- The policyholder can also avail tax benefits under section 80C and 10(10D) of the Income Tax Act in respect of the premiums paid for the plan and death benefit received under the plan.
- The plan also provides liquidity to the insured by offering the loan facility. The holder of the policy can take a loan when he/she is in urgent need of funds. The plan must acquire a surrender value to provide the facility of loan and the loan amount will not exceed 90% of the surrender value of the plan
- The plan does not have any rider benefit available
- The holder of the policy also has an option to surrender the insurance plan after a lock-in period of three years. After the surrender of the plan, the insurance company will pay the guaranteed surrender value to the policyholder.
- In case the insured commits suicide within a period of one year from the start of the policy, the premiums paid for the plan until the date of date will be refunded to the nominee of the plan
Eligibility conditions of SBI Life Smart Guaranteed Savings Plan
SBI Life issue Smart Guaranteed Savings plan only to those individuals or applicants who fulfil the eligibility conditions required for the plan. The criteria of eligibility of SBI Life Smart Guaranteed plan are as follows:
- The minimum age for entry age in the plan is 18 years and maximum age for entry in the plan is 50 years
- The minimum amount of premium required to be paid for the plan is Rs 15, 000 and the maximum amount of premium is Rs 75,000. The premiums are to be paid in the multiples of 1000.
- The maximum maturity age for the plan is 65 years.
- The premium paying term of this insurance plan is a limited period of 7 years.
- The frequency of premium payment is yearly.
- The minimum sum assured in the plan is to be calculated as per the premium selected by the holder of the policy.
Benefits of SBI Smart Guaranteed Savings Plan
This plan provides guaranteed returns which can either be in the form of maturity benefit or death benefit. The benefits offered by SBI Life Smart Guaranteed Savings Plans are as follows:
- Death Benefit – On death of the insured during the term of the plan, the nominee of the plan will receive the death benefit under the plan which will be higher of the sum assured in the plan on death along with Vested Simple Reversionary declared by the company every year and Terminal Bonus, if any or 105% of premiums paid for the plan by the insured till the date of his/her death or 10 times of one annualised premium paid for the plan
- Maturity Benefit- On maturity of the term of the plan, the insurance company will pay maturity benefit which will be Basic Sum Assured in the plan and accumulated guaranteed returns.
- Guaranteed additions – Guaranteed additions are offered at the end of the every policy year on the cumulative basis of the premium paid. The percentage of guaranteed additions will depend on the amount or band of premium selected by the policyholder. These guaranteed additions are paid on the maturity of the plan or on the death of the insured during the term of the plan whichever is earlier. For a yearly premium of Rs 15,000 to 29,000, the rate of guaranteed additions is 5.5 % and for a yearly premium of Rs 30,000 – Rs 75,000, the rate of guaranteed additions is 6%
- Grace period- 30 days grace period is offered to the holder of the policy to pay the due premiums if any. If the due premium is not paid within the 30 days grace period, the policy will lapse.
- Free look period- If the policyholder is not satisfied with the plan and its terms and conditions then he can cancel the plan within 15 days of the receipt of the policy document.
Smart Guaranteed Savings plan is a dual benefit insurance policy which provides a systematic savings benefit and life insurance coverage. This plan ensures savings for a certain period and then for the next specifies period pays pay-outs to the policyholder. The guaranteed additions offered by the plan are very beneficial and makes it a smarter choice. SBI Life Smart Guaranteed Savings Plan is a better option for those who want to receive guaranteed returns and higher additions through regular yearly pay-outs.