Investment Plans 644 views March 31, 2020

SBI Life Smart Power Insurance Plan

State Bank of India with its SBI Life Insurance Company has introduced a wide range of insurance products in India. the company offers innovative and exclusive insurance plans to cater to the insurance needs of every individual. All the products offered by SBI Life Insurance Company are unique and offer the best features at competitive rates. With a wide range of insurance plans, SBI Life helps the customer to benefit from the right insurance product.

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What are the Unit-Linked Insurance Plans?

Unit-Linked Insurance Plans are those that help in multiplying the wealth with the help of market-linked products. The ULIPs are the best wealth-creating tools as these plans invest the premium amount in various market-oriented funds and give returns as per the market condition and performance. 

SBI Life Smart Power Insurance Plan

SBI Life Smart Power Insurance is a Unit-linked, Non-Participating life insurance plan that helps you in your journey of wealth creation. The plan is designed to offer maximum returns at reasonable premium amount. The returns under this plan depend on the market conditions and fund performance. Being a ULIP plan, it comes with a 5-year lock-in period where the investor cannot withdraw the money during the 1st five policy years. During the lock-in period, the investor cannot withdraw or surrender the policy therefore it is considered as the best investment plan for those looking for long-term investment option for achieving higher financial goals.

Features of SBI Life Smart Power Insurance Plan

The plan offers the following features to the individuals

  1. The plan offers in-built Accelerated Total and Permanent Disability benefit to help secure your family’s financial future
  2. The plan offers the choice to opt for increasing cover option
  3. The plan offers two funds for investment namely Trigger Fund and Smart Fund
  4. Two plan options are available namely Level Cover Option and Increasing Cover Option
  5. The plan is designed to offer market-linked returns at an affordable premium amount
  6. Partial withdrawals from the policy are available from 6th policy year

Benefits of SBI Life Smart Power Insurance Plan

The Smart Power Insurance Plan offers the following benefits:

The Maturity Benefit of SBI Life Smart Power Insurance Plan:

In the event of survival of the policyholder during the policy tenure, the plan offers Maturity Benefit equivalent to fund value shall be paid to the policyholder in a lump sum.

The Death Benefit of Smart Power Insurance Plan:

In the event of the death of the policyholder, the nominee shall receive the death benefit. The death benefit paid under this plan is higher of the following:

  1. Fund Value of the policy as on the date of the death intimation
  2. Basic Sum Assured
  3. 105% of premiums received up to the date of death.

In-Built Benefit of SBI Life Smart Power Insurance Plan:

The plan offers an in-built Total and Permanent Disability benefit wherein in the event of TPD due to accident or sickness, 100% amount equivalent to death benefit shall be paid immediately and the policy contract would come to an end.

Tax benefit of SBI Life Smart Power Insurance Plan:

The policyholder is eligible to receive a tax benefit on the premium paid under section 80C up to Rs 1.5 lakhs per annum and maturity benefit under section 10(10D) of the Income Tax Act provided the sum insured is at least 10 times the annual premium.

Eligibility Criteria of SBI Smart Power Insurance plan

ParticularsEligibility Criteria
Entry AgeMinimum of 18 years
Maximum of 45 years
Maximum maturity age65 years
Policy Term10 years to 30 years
Premium Payment TermSame as Policy Term
Basic Sum Assured10 times of Annualized Premium
Premium FrequencyYearly/Half-Yearly/Quarterly/Monthly
Approximate Minimum Premium amountYearly: Rs 15000
Half Yearly: Rs 9500
Quarterly: Rs 5500
Monthly: Rs 2000

Life Cover Option Under SBI Life Smart Power Insurance Plan

The Smart Power Insurance offers two life cover options, you can choose anyone at the time of policy purchase. The details of life cover option are as under:

  1. Level Cover Option: As the name suggests, under the level cover option the sum assured opted by the policyholder at the time of policy inception remains the same throughout the policy tenure.
  2. Increasing Cover Option: Increasing Cover option allows to increase the sum assured by 10%, commencing from 6th policy year and after every 5 years. Kindly note, this increasing cover option is available without any additional underwriting.

FAQ’s

Who can buy SBI Life Smart Power Insurance Plan?

This plan is best for individuals who are interested in long-term savings and wealth creation by investing in various market-linked funds. The plan offers the opportunity to maximize wealth through investing in various funds. 

When to buy SBI Life Smart Power Insurance plan?

The best time to buy any insurance is to buy early. As this plan is unit-linked plan investing for long tenure can ripe good results. The investment in the plan can be as per one’s investment goals, market conditions and risk appetite of the policyholder.

Documents required for buying Smart Power Insurance Plan

An individual needs to submit the following relevant documents for buying Smart Power Insurance

  1. A completely and correctly filled proposal form
  2. Copy of Identity Proof namely PAN Card, Aadhar Card, Passport, etc.
  3. Copy of Address Proof Namely Electricity Bill, Aadhar Card, Passport, etc.
  4. Copy of Age Proof namely Birth Certificate, School leaving certificate, passport, etc.
  5. Copy of Income Proof

Conclusion

SBI Life Smart Power Insurance Plan is one of the most competent unit-linked insurance plan offered by SBI Life Insurance Company. The plan aims at wealth creation through investing the premium amount in various market-driven instruments. The plan is best for individuals seeking long-term wealth creation through market-linked instruments.

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