SBI Life Smart Income Shield Plan

 

SBI Life Smart Income Shield Plan
 
SBI Life Smart Income Shield Plan is a Term Plan with Death Benefit provided in a staggered form under Monthly Income Scheme and not in a lumpsum.
 
How it works – In this plan, premium needs to be paid either under Regular Premium Option till the end of the Policy Tenure or for a limited period Under Limited Payment Option.
 
In this plan, there are 2 Plan Options:
  • Basic Plan which provides for basic Death Benefit
  • Advantage Plan which provides for Death Benefit as well as benefit in event of Critical illness or Total Permanent Disability, whichever occurs first
 
In this plan, the policyholder needs to opt for Monthly Income which would be provided to the nominee in case of an unfortunate event of the Life Insured’s death within the Policy Tenure. 12 times the Monthly Income is paid to the nominee as Immediate Death Benefit and then the Regular Monthly Payout works. All the 3 Monthly Income Options are available in both the Plan Options mentioned above.
 
There are 3 Monthly Income Options to choose from:
  • Benefit Option I: Regular Monthly Payout for 5 years
  • Benefit Option II: Regular Monthly Payout for 10 years
  • Benefit Option III: Regular Monthly Payout for the remaining Policy Tenure from the event
 
Thus, to sum it up: Under Basic Plan Option, a Monthly Income would be provided for 5, 10 or remaining years to Policy Tenure if the Life Insured dies within the Policy Tenure. And under Advantage Plan Option, a Monthly Income would be provided for 5, 10 or remaining years to Policy Tenure if the Life Insured dies within the Policy Tenure or meets with Critical illness or Total Permanent Disability, whichever occurs first.
 
Being a pure protection plan, there are no Maturity or Surrender Benefits in this plan.
 
Key Features of SBI Life Smart Income Shield Insurance Policy
 
  • This is a pure Term Plan with Monthly Income provided as Death Benefit and no Maturity Benefit and Bonus facility
  • There are 2 Plan Options available- Basic Plan which provides for basic Death Benefit and Advantage Plan which provides for Death Benefit as well as benefit in event of Critical illness or Total Permanent Disability, whichever occurs first
  • There are no additional riders in this plan but Critical illness and Total Permanent Disability are inbuilt riders under Advantage Plan Option
  • There are 3 Options for choosing Monthly Benefit and all 3 options are available for both plan options
  • 3 Monthly Income Options to choose from are Benefit Option I where Regular Monthly Payout is for 5 years, Benefit Option II where Regular Monthly Payout is for 10 years and Benefit Option III where Regular Monthly Payout is for the remaining Policy Tenure from the event
  • In this plan, 12 times the Monthly Income is paid to the nominee as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen
  • There are no Maturity or Surrender Benefits in this plan
  • There is a facility of Limited Payment for Benefit Option III under both Basic and Advantage Plans
  • For monthly Regular Income chosen of Rs. 30,000 or more, there is a premium discount of 3%
 
Have any doubts that need to be clarified? Request a Call Back
 
Benefits you get from SBI Life Smart Income Shield Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, under both Basic and Advantage Plan Options, the nominee gets 12 X Monthly Income as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen:
  • Benefit Option I: Regular Monthly Payout for 5 years
  • Benefit Option II: Regular Monthly Payout for 10 years
  • Benefit Option III: Regular Monthly Payout for the remaining Policy Tenure from the event
 
Total Permanent Disability/ Critical Illness Benefit— Under Advantage Plan Option, in case of total permanent disability, critical illness or death of the Life Insured within the Policy Tenure, whichever occurs first, the nominee gets 12 X Monthly Income as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen.
 
Maturity Benefit – Being a pure protection plan, there is no Maturity Benefit under this plan.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 
 
Eligibility conditions & other restrictions in SBI Life Smart Income Shield Insurance Plan
 

 
Minimum
Maximum
Sum Assured (in Rs.)
12 x Monthly Income benefit amount x Payout term
(For Option III, the Payout term is the outstanding term)
Policy Term (in years)
5
25
Premium Payment Term (in years)
3
Equal to Policy Tenure
Entry Age of Life Insured (in years)
18
65 for Basic
60 for Advantage
Age at Maturity (in years)
-
70 for Basic
65 for Advantage
Monthly Income (in Rs.)
10,000
50,000 for Advantage
No Limit for Basic
Payment modes
Yearly / Half-yearly / Quarterly / Monthly

 

 

Sample illustration of Premium for all combination Variants of SBI Life Smart Income Shield Plan
 

 

The below illustration is for a healthy male of 30 years opting for a Monthly Income of Rs 25,000 in yearly mode for a Policy Term of 25 years

SBL Life Smart Income Shield Plan Sample Premiums

 

Additional Features and Benefits of SBI Life Smart Income Shield Plan
 
Riders – There are no additional riders in this plan but Critical illness and Total Permanent Disability are inbuilt riders under Advantage Plan Option
 
 
What happens if?
 
You stop paying the premium - If the policy holder stops paying the premium, the policy lapses and all benefits cease. Paid ups are not allowed for Benefit Options I and II. However, Paid ups are allowed for Benefit Option III, provided at least 2 years’ premiums are paid and the policy continues with reduced benefit. The policy can however be revived within 3 policy years from the due date of the first unpaid premium.
 
You want to surrender the policy – There are no surrender benefits in this plan.
 
You want a loan against your policy – Loan facility is not available in this plan.
 
 
Other Term Insurance Plans from SBI Life Insurance
 
 
 
Some Term Plans from other insurance companies
 
~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the SBI Life Smart Income Shield Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable SBI Life Smart Income Shield Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


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