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SBI Life eWealth Insurance Plan

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SBI Life eWealth Insurance Plan Review

The SBI Life eWealth Insurance Plan is an online Unit Linked Insurance Plan which has been developed to provide double benefits of insurance protection and market linked returns. Thus, the plan helps the policyholder to secure his insurance needs and also maximize his wealth through attractive returns.
 

Highlights of the SBI Life eWealth Insurance Plan

  • This is a Unit Linked Plan which does not participate in bonuses.
  • The plan can be bought online in three simple steps.
  • The plan comes in two options of Growth and Balanced to suit different risk profiles of the policyholders.
  • The plan has the feature of Automatic Asset Allocation which automatically manages the policyholder’s investments to maximize returns.
  • There are no Premium Allocation Charges which increases the fund value.


Working of the SBI Life eWealth Insurance Plan

  • The policyholder decides on the premiums he wants to pay and the plan option at the time of plan commencement. 
  • The Growth Plan and the Balanced Plan differ in terms of equity exposure. Growth Plan has a higher equity exposure than Balanced Plan.
  • The premium paid net of applicable charges is invested under the Automatic Asset Allocation (AAA) feature. Under this feature, the premiums are primarily invested in equity at the start. Then, the proportion of equity investments decrease and the investments in debt or money market instruments increase as the plan approaches maturity. This is done to protect the returns generated from market volatility in later years.
  • There are three types of funds in which the net premium is invested based on the AAA principle. The funds are
    • Equity Fund 
    • Bond Fund
    • Money Market Fund:
  • If the policyholder dies during the tenure of the plan the death benefit is paid.
  • If the plan attains maturity, the maturity benefit is paid.


COMPARE THIS PLAN WITH OTHER ULIP PLANS


Benefits and Features of SBI Life eWealth Insurance Plan

  • Maturity Benefit – On maturity, the Fund Value available on the maturity date would be paid. The policyholder, if wishes, can also avail the Fund Value in installments over a period of 5 years post the date of maturity under the Settlement Option clause available with the plan.
  • Death Benefit – In case of death of the insured, higher of the following would be payable:
    • Fund Value
    • Sum Assured net of Partial Withdrawals made in the preceding 2 years
    • 105% of the total premiums paid till death
  • Bonus – Being a ULIP plan, bonus is not declared.
  • Loan –Loan is not available under the plan.
  • Tax benefit – 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.


Eligibility Criteria of SBI Life eWealth Insurance Plan

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 50 years
Maturity Age (Last Birthday) NA 60 years
Plan tenure 10 years 20 years
Premium payable Yearly – Rs.10,000
Monthly – Rs.1000
Yearly – Rs.1,00,000
Monthly – Rs.10,000
Premium Paying Term Equal to plan term
Sum Assured 10 times the annual premium paid
Premium payment mode Monthly and yearly
 


Applicable charges in SBI Life eWealth Insurance Plan

Being a ULIP plan, there are certain charges applicable. The charges include the following:
  • Premium Allocation Charge – The plan has no Premium Allocation Charge.
  • Policy Administration Charge – A monthly charge of Rs.45 is deducted from the fund value at the start of each month.
  • Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
 
Fund Type Charge
Equity Fund 1.35% per annum
Bond Fund 1.00% per annum
Money Market Fund 0.25% per annum
Discontinuance Policy Fund 0.50% per annum
 
  • Discontinuance Charge – Applicable for policies in which premiums are discontinued. The charges are:
 
Year of Discontinuance Annual Premiums up to Rs.25,000 Annual Premiums above Rs.25,000
1 Lower of 20% of annual premium or Fund Value up to a maximum of Rs.3000 Lower of 6% of annual premium or Fund Value up to a maximum of Rs.6000
2 Lower of 15% of annual premium or Fund Value up to a maximum of Rs.2000 Lower of 4% of annual premium or Fund Value up to a maximum of Rs.5000
3 Lower of 10% of annual premium or Fund Value up to a maximum of Rs.1500 Lower of 3% of annual premium or Fund Value up to a maximum of Rs.4000
4 Lower of 5% of annual premium or Fund Value up to a maximum of Rs.1000 Lower of 2% of annual premium or Fund Value up to a maximum of Rs.2000
5 year onwards Nil Nil
 
  • Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age.
  • Medical expenses on revival – On reviving the policy if any medical expenses are incurred, the cost of such expenses would be deducted from the Fund Value up to a maximum of Rs.3000


Additional Benefits of SBI Life eWealth Insurance Plan

  • Riders – No additional riders are available with the plan. 
  • Partial Withdrawals – Partial withdrawals are allowed in the plan after a completion of 5 policy years. One withdrawal in a year is free after which a charge of Rs.100 per withdrawal would be applicable. The minimum amount of partial withdrawal is Rs.5000 and thereafter in multiples of Rs.1000 to a maximum of 15% of the Fund Value.
  • Grace Period – A grace period of 30 days is allowed for annual payment of premium and 15 days for monthly mode of premium payment.
  • Free Look Period – A cooling off period or a free look period of 30 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


Exclusions in SBI Life eWealth Insurance Plan

  • If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.


Non-Payment of premium in SBI Life eWealth Insurance Plan

If the premiums are not paid within the Grace Period, the policy would lapse. The lapsed policy can be revived, surrendered or made paid-up as per the policyholder’s choice.

Making the policy Paid-up

The policy can be converted into a paid-up policy only if 5 full years’ premiums have been paid. After conversion, the policy would acquire a paid-up value which would be:
Paid –up Value = Sum Assured * (number of Premiums Paid / total number of premiums payable)
A paid-up policy would attract mortality charges, Fund management Charges and Policy Administration charges.


Surrendering the policy

  • Within the first 5 policy years
The policy has a 5 year lock-in period. If premiums are discontinued within the first 5 years, the funds in the Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. This fund would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid.
 
  • After 5 years
If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid without deduction of any charges.

Revival 

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.
 
NAV of all funds in SBI Life eWealth Insurance Plan
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