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SBI Life Smart Champ Insurance

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SBI Life Smart Champ Insurance Plan Review

SBI Life Smart Champ Insurance is a non-linked participating life insurance plan, designed to protect your child’s future educational needs. In this plan, the parent will be the payor and life insured the child would be a nominee. The plan offers assured benefits and since its participating plan, it will accumulate bonus at the end of the every policy year, till the child turns 18. 
 

How does the plan work?

Sample illustration of plan
Criteria
Life Assured – 35 years
Child – 6 years
Policy Term – 15 years
Premium payment Term – 12 years
Sum Assured – 5 lacs
Premium – Rs. 41,410
Benefits payable when child turns 18
 

Smart Benefit Payment due date

Child’s age (in years)

Smart Benefits (in Rs.)

@4 %

@8 %

Guaranteed Smart Benefits (in Rs.)

Nonguaranteed Simple vested bonus +Terminal bonus (if any) (in Rs.)

Guaranteed Smart Benefits (in Rs.)

Nonguaranteed Simple vested bonus +Terminal bonus (if any) (in Rs.)

1st March 2026

18

1,25,000

28,500

1,25,000

45,000

1st March 2027

19

1,25,000

28,500

1,25,000

45,000

1st March 2028

20

1,25,000

28,500

1,25,000

45,000

1st March 2029

21

1,25,000

45,000

1,25,000

72,000



 

Key Features of SBI Smart Champ Insurance Plan

Guaranteed Smart Benefits are payable in 4 equal annual installments after the child attains 18 years of age
Future premiums are waived off on death of the policyholder and the policy continues to accrue bonuses
Flexible premium paying Term – Single, Regular, Limited
Option to receive the discounted value of the future due installment(s) of Smart Benefits plus the terminal bonus, if any, in a lump sum amount during last 3 policy years.

COMPARE THIS PLAN WITH OTHER CHILD PLANS


 

Benefits you get from SBI Smart Champ Insurance Plan

Death/ATPD Benefit – In the event of death or ATPD, whichever is earlier, a lump sum benefit is paid as below:
Single premium – “sum assured on insured event”
Where, “sum assured 
 

Policy Term

Age at entry of life assured less than 45 years

Age at entry of life assured 45 years or more

All terms

1.25

1.10


Limited premium – “sum assured on insured event” 
Where, “sum assured on insured event” is higher of basic sum assured or a multiple of annualised premium* or 105% of all the premiums paid till the death of life assured, where multiple is

Policy Term

Age at entry of life assured less than 45 years

Age at entry of life assured 45 years or more

8 and 9 years

5

5

10 years or more

10

7


Future premiums – waived off, the policy continues to accumulate bonuses
Smart Benefits – due instalments are payable, Terminal bonus will be paid along with the last smart instalment.

Option to receive discounted value – nominee or class one legal heir has an option to get the lump sum discounted value on the smart benefits, however, in such a scenario, it should be informed to company at least 3 months prior to the date of smart instalment.  The discount rate will be 6.25% per annum and terminal bonus will be paid along with lump sum amount.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1, 50,000 are allowed as a deduction from the taxable income each year under section 80C.
 


Eligibility conditions and other restrictions in SBI Smart Champ Insurance Plan

Particulars

Minimum

Maximum

Entry age (in years)

Child

Life Assured

21

50

0

13

Maximum Maturity age (in years)

(Life Assured)

70

21

Basic Sum assured

 

100000*1000

1 crore

Policy Term

 

21 minus nominee’s entry age

Premium payment term for limited premium

 

18 minus nominee’s entry age

Premium frequency

 

Single, yearly, half yearly, quarterly, monthly


Premium as per the premium payment mode:-

Premium payment mode

Minimum Premium (in Rs.)

Monthly

500

Quarterly

1500

Half yearly

3000

Annual

6000

Single

66000

 


Additional Features and Benefits of SBI Smart Champ Insurance Plan

High Sum assured Benefit – get discount on premiums for opting higher sum assured. Discount will be per Rs. 1000 of basic sum assured.

Riders – No riders available under this plan

Free look – If the policy holder is not convinced with the terms and conditions of the plan, then the policy can be cancelled within 15 days from the date of receipt of policy document.

 

What happens if?

You stop paying the premium – If the premium is not paid within 30 days from the date of due date, the policy lapses. The policy can be revived within 2 years from the date of first unpaid premium and the benefits would attached to the policy will commence.

You want to surrender the policy – The policy can be surrendered after 3 years of policy, as it would have acquired some value to be paid off at the time of surrender. On surrender, higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) will be paid. 

You want a loan against your policy - There is loan facility available under this plan.

 

Exclusions

If the life assured, commits suicide, within a year of policy start 80% of the premiums paid, 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.
 
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