SBI Life Scholar II Plan

SBI Life Scholar II Plan is a simple Money Back Child Plan. This is a Traditional Plan with Bonus facility. In this plan, the life of the parent is insured for the benefit of the child’s future.

In this plan, the Policy Term is (21 years – Age at entry of the Child) and premium needs to be paid for (18 years – Age at entry of the Child). In this plan, 25% of the Sum Assured is paid out every year after the child attains 18 years of age and the last instalment is paid on maturity when the child is 21 years or age along with the vested bonus. However if the parent dies within the policy tenure, then the entire Sum Assured is paid irrespective of the fact whether any Survival Benefit has been paid or not. The future premiums are waived but the policy continues till the entire Survival Benefit has been paid as per schedule.

There are 3 additional riders in this plan.

• In this plan money is returned every year after the child attains 18 years of age
• the Policy Term is (21 years – Age at entry of the Child) and premium needs to be paid for (18 years – Age at entry of the Child).
• Death Benefit is Sum Assured is paid irrespective of the fact whether any Survival Benefit has been paid or not.
• Future premiums are waived off by an inbuilt rider in case of death of the parent.
• In this plan 25% of the Sum Assured is paid out every year after the child attains 18 years of age and the last instalment is paid on maturity when the child is 21 years or age along with the vested bonus.
• Bonus is available on maturity or on earlier death.
• There is a special rebate for women policyholders and for large Sum Assured.
• There are 3 additional riders in this plan

Death Benefit –

• The nominee receives the Sum Assured and the accrued Bonus as Immediate Payment
• All future premiums are waived off and paid by the insurer
• The Survival and Maturity Benefits are paid in due course of time.

Survival Benefit –

• When the child attains 18 years of age, 25% of the Sum Assured is paid
• When the child attains 19 years of age, 25% of the Sum Assured is paid
• When the child attains 20 years of age, 25% of the Sum Assured is paid

Maturity Benefit – The remaining 25% of Sum Assured + Vested Bonus is paid when the child is 21 years old.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy person opting for a Sum Assured = Rs. 1,00,000

Age of Parent= 30 years

Age of Child= 1, 5 and 10 years

Riders- There are 3 additional riders available with this plan-

1. Individual Critical Illness rider
2. Accidental Death and Permanent Disability rider
3. Premium Waiver Benefit rider- for total and permanent disability

And 1 in built rider available - Premium Waiver Benefit rider

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse.

You want to surrender the policy – No information.

You want a loan against your policy - No information.