SBI Life Smart Guaranteed Savings Plan
SBI Life Smart Guaranteed Savings Plan Review
SBI Life Smart Guaranteed Savings Plan is a non-participating traditional savings plan, where you save systematically for a certain period of time and get rewarded with guaranteed additions (GA) at the end of each policy year. On maturity, the policyholder gets Vested Simple Reversionary + Terminal Bonus. Additionally, s/he gets yearly pay-outs equal to 11% of basic sum assured for next 15 years after maturity.
Key Features
Benefits
In case of death of the policy holder, the nominee gets higher of the below:
- Sum assured on death + Vested Simple Reversionary + Terminal Bonus, if any. or
- 105% of the premiums paid till the date of death
At the end of the policy term, the policy holder gets, Basic Sum Assured + accumulated guaranteed returns.
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C
You can cancel the policy in 15 days of receipt of policy document, if you are not convinced with Terms and Conditions of the policy.
Not available under this plan
How it works
Guaranteed additions (GA) are added at the end of the policy each policy year, it’s on the cumulative premium paid and the percentage of addition will depend upon the premium band selected. GA’s are paid on maturity or earlier death of life assured.
GA percentage as per premium band -
| Yearly Premium (in Rs) | % of guaranteed additions |
| 15000 - 29000 | 5.5 |
| 30000 - 75000 | 6 |
Let’s illustrate the GA, based on the yearly premium and % of guaranteed additions, shown above:
Criteria
Male – 40 years
Premium – Rs.30, 000
Sum assured – Rs.2, 09,400
| Policy year | Annual Premium | Cumulative Premium | Pay out @6% |
| 1 | 30,000 | 30,000 | 1800 |
| 2 | 30,000 | 60,000 | 3600 |
| 3 | 30,000 | 90,000 | 5400 |
| 4 | 30,000 | 1,20,000 | 7200 |
| 5 | 30,000 | 1,50,000 | 9000 |
| 6 | 30,000 | 1,80,000 | 10,800 |
| 7 | 30,000 | 2,10,000 | 12,600 |
| 8 | Premium Payment Term over | 2,10,000 | 12,600 |
| 9 | 2,10,000 | 12,600 | |
| 10 | 2,10,000 | 12,600 | |
| 11 | 2,10,000 | 12,600 | |
| 12 | 2,10,000 | 12,600 | |
| 13 | 2,10,000 | 12,600 | |
| 14 | 2,10,000 | 12,600 | |
| 15 | 2,10,000 | 12,600 |
So, pay till 7 years and continue to get the pay-out for another 8 years, which is a good handsome amount which can be used to meet financial needs.
Eligibility
| Particulars | Minimum | Maximum |
| Entry Age (in years) | 18 | 50 |
| Premium*1000 | 15,000 | 75,000 |
| Maximum Maturity Age (in years) | 65 years | |
| Policy Term | 15 years | |
| Premium Payment Term | 7 years | |
| Premium frequency | Yearly | |
| Sum Assured | As per premium chosen | |
Exclusions
If the life assured, commits suicide, within a year of policy start the premiums paid till date, will be given to nominee. In case of suicide within one year from revival date, 80% of premiums paid or surrender value, whichever is higher would be paid and the policy will terminate.
FAQs
You stop paying the premiumThe policy gets lapsed if the premium is not paid within 30 days from the due date, this period is referred as “grace period”.
You want to surrender the policyPolicy can be surrendered after 3 policy years. Guaranteed Surrender value (GSV) will be paid, GSV factors percentage of basic premium paid, below is the illustration:
| Policy Year | As a percentage of basic premium paid |
| 1 | 0 |
| 2 | 30 |
| 3 | 30 |
| 4-7 | 50 |
| 8-10 | 55 |
| 11-15 | 60 |
You want a loan against your policyLoan facility is available under this policy.
