SBI Life Smart Money Planner Plan
The SBI Life Smart Money Planner Plan is a traditional, participating Money-back insurance plan which promises regular annual payouts of the Sum Assured in installments from a specified period. Thus, the plan provides for liquidity of the Sum Assured through regular cash flows and also bonus participation.
Highlights of SBI Life Smart Money Planner Plan
- This is a traditional Money Back Plan which participates in the profits of the company through bonus earnings
- The plan has limited premium paying term, a growth period and a benefit period.
- The plan comes in four different combinations of the term, premium paying term, growth period and benefit period
- A fixed percentage of the Sum Assured is paid annually during the benefit period
- The premium can be paid in one lump sum through the Single Premium facility or for a limited period as chosen by the policyhol
Benefits
When the plan matures, the guaranteed Sum Assured on maturity, reversionary bonuses accumulated and any Terminal Bonus would be paid. The guaranteed Sum Assured on maturity would be 10% or 20% of the Sum Assured depending on the plan variant chosen.
If the insured dies during the continuation of the plan, higher of the following would be payable:
- Sum Assured on Death + vested simple reversionary bonuses + Terminal Bonus (if any)
- 105% of the total premiums paid till death
The Sum Assured on death for the above calculation would be higher of the: - Basic Sum Assured as chosen at policy commencement
- Guaranteed Sum Assured on Maturity which is 10% or 20% of the base Sum Assured depending on the plan option
- 10 times the annual premium or 1.25 times the Single Premium paid if age is less than 45 years or 7 times the annual premium or 1.10 times the single premium paid if age is 45 years and above
Also called Money Back benefits, these are the percentage of Sum Assured (10% or 20%) paid over the benefit period.
Simple reversionary bonuses are declared under the plan which depends on the performance of the company. Terminal Bonus may be paid on death, maturity or surrender.
Loan can be taken on the policy after the policy has acquired a Surrender Value. The maximum amount of loan available is 90% of the acquired Surrender Value.
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
No additional riders are available with the plan.
If a higher amount of Sum Assured is chosen, the company provides premium rebates. This rebate is allowed per thousand Sum Assured for Sum Assured levels above Rs.2 lakhs. For Sum Assured Rs.2 lakhs to Rs.3 lakhs, the applicable rebate is Rs.2 for limited premium plans and Rs.20 for single premium ones, for Sum Assured of Rs.3 lakhs to Rs.5 lakhs, the rebate is Rs.3 and Rs.25 for limited and single premium plans and for Sum Assured Rs.5 lakhs and above, the rebate is Rs.5 and Rs.30 respectively for limited premium and single premium.
A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly or quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
How it works
Premium is paid either once or for a limited tenure
⦁ The plan has four options of policy term and premium payment term and the policyholder has to choose one option. The options are:
| Plan | Policy term | Premium paying term | Growth period | Benefit period | % of Sum Assured paid as money-back |
| 1 | 15 years | 6 years | 4 years | 5 years | 20% |
| 2 | 20 years | 6 years | 4 years | 10 years | 10% |
| 3 | 20 years | 10 years | 5 years | 5 years | 20% |
| 4 | 25 years | 10 years | 5 years | 10 years | 10% |
- After paying the premium, the growth period starts and after this period the benefit period starts which pays the mentioned percentage of Sum Assured annually.
- If a single premium is paid, the growth period would be the aggregate of the premium paying term and the growth period of the variant of the plan chosen. For instance, in plan 2, the growth period for single premium policies would be 10 years and then 10% of the Sum Assured would be paid over the last 10 years
- On death during the period, the death benefit and bonuses is paid
- On maturity, the sum assured on maturity and the bonuses are paid
Eligibility
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Minimum | Maximum | |
| Entry age (Last Birthday) | 18 years | Plan 1 – 60 years Plans 2 and 3 – 55 years Plan 4 – 50 years |
| Maturity Age (Last Birthday) | NA | 75 years |
| Plan tenure | 15, 20 or 25 years | |
| Premium payable | Would depend on the age, plan variant and Sum Assured chosen | |
| Premium Paying Term | Limited Premium: Plan 1 and 2 – 6 years Plan 2 and 3 – 10 years Single Premium |
|
| Sum Assured | Rs.1 lakh | Rs.5 crores |
| Premium Frequency Loading | Half-yearly – 52% of annual premium Quarterly – 26.50% of annual premium Monthly – 8.9% of annual premium |
|
| Premium payment mode | Monthly, quarterly, half-yearly and annually or Single Premium | |
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Surrender Value
- For limited premium plans
Surrender is allowed only after the policy becomes paid-up. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.- GSV = {(Basic Premium paid excluding taxes * GSV Factor)– Survival benefits already paid} + (Vested Bonus* SV factors of bonuses)
- The SSV would be declared by the company based on its performance.
- For Single Premium Plans
Single premium plans can be surrendered anytime during the plan tenure. On surrender higher of the GSV or the SSV would be payable.- GSV if plan is surrendered within first 3 years – (70% of the Single premium) + (Vested Bonus* SV factors of bonuses)
- GSV if plan is surrendered after 3 years - (90% of the Single premium) + (Vested Bonus* SV factors of bonuses)
- SSV is declared based on the performance of the company
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.
Exclusions
- If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable
- If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force
Claim Process
If at least 2 or 3 full years’ premium has been paid depending on the plan option, the policy would become a paid-up policy if future premiums are not paid. Paid-up is available only in limited premium plans. The Sum Assured would be reduced and would be called the Paid-up Sum Assured
Future bonuses would not be declared under the policy and the following benefits would be paid as and when they occur:
- Death Benefit – On death, the Paid-up Sum Assured on death including the vested bonuses and any Terminal Bonus would be paid. The Paid-up Sum Assured on death can be calculated as:
Sum Assured on death* (number of Premiums Paid / total number of premiums payable)
- Maturity benefit – On maturity the Paid-up Sum Assured on maturity, accumulated bonuses and Terminal Bonus if any would be paid. The Paid-up Sum Assured on maturity can be calculated as:
Sum Assured on maturity* (number of Premiums Paid / total number of premiums payable)
- Survival Benefit – These benefits would be 10% or 20% of the Paid-up Sum Assured where the Paid-up Sum Assured is:
Sum Assured * (number of Premiums Paid / total number of premiums payable)
