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SBI Life Smart Guaranteed Savings Plan

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SBI Life Smart Guaranteed Savings Plan Review

SBI Life Smart Guaranteed Savings Plan is a non-participating traditional savings plan, where you save systematically for a certain period of time and get rewarded with guaranteed additions (GA) at the end of each policy year. On maturity, the policyholder gets Vested Simple Reversionary + Terminal Bonus. Additionally, s/he gets yearly pay-outs equal to 11% of basic sum assured for next 15 years after maturity.

 

How does the plan work?

Guaranteed additions (GA) are added at the end of the policy each policy year, it’s on the cumulative premium paid and the percentage of addition will depend upon the premium band selected. GA’s are paid on maturity or earlier death of life assured.
GA percentage as per premium band - 

Yearly Premium (in Rs)

% of guaranteed additions

15000 - 29000

5.5

30000 - 75000

6

Let’s illustrate the GA, based on the yearly premium and % of guaranteed additions, shown above:
Criteria
Male – 40 years
Premium – Rs.30, 000
Sum assured – Rs.2, 09,400

Policy year

Annual Premium

Cumulative Premium

Pay out @6%

1

30,000

30,000

1800

2

30,000

60,000

3600

3

30,000

90,000

5400

4

30,000

1,20,000

7200

5

30,000

1,50,000

9000

6

30,000

1,80,000

10,800

7

30,000

2,10,000

12,600

8

Premium Payment Term over

2,10,000

12,600

9

2,10,000

12,600

10

2,10,000

12,600

11

2,10,000

12,600

12

2,10,000

12,600

13

2,10,000

12,600

14

2,10,000

12,600

15

2,10,000

12,600

So, pay till 7 years and continue to get the pay-out for another 8 years, which is a good handsome amount which can be used to meet financial needs

 

Key Features of SBI Life Smart Guaranteed Savings Plan

  • Guaranteed additions at end of each policy year
  • Guaranteed Additions# are added at the simple rate of 5.5% or 6% 
  • Limited premium paying term of 7 years
  • Tax Benefits under Section 80C and 10(10D) of the Income Tax Act
 
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS

 

Benefits of SBI Life Smart Guaranteed Savings Plan

Death Benefit – In case of death of the policy holder, the nominee gets higher of the below:
  • Sum assured on death + Vested Simple Reversionary + Terminal Bonus, if any. or 
  • 105% of the premiums paid till the date of death
Maturity Benefit – At the end of the policy term, the policy holder gets, Basic Sum Assured + accumulated guaranteed returns.

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 Life Smart Guaranteed Savings Plan

Particulars

Minimum

Maximum

Entry Age (in years)

18

50

Premium*1000

15,000

75,000

Maximum Maturity Age (in years)

65 years

Policy Term

15 years

Premium Payment Term

7 years

Premium frequency

Yearly

Sum Assured

As per premium chosen



 

Additional Features and Benefits of SBI Life Smart Guaranteed Savings Plan

Free look - You can cancel the policy in 15 days of receipt of policy document, if you are not convinced with Terms and Conditions of the policy.

Riders – not available under this plan

 

What happens if?

You stop paying the premium – The policy gets lapsed if the premium is not paid within 30 days from the due date, this period is referred as “grace period”.

You want to surrender the policy – Policy can be surrendered after 3 policy years. Guaranteed Surrender value (GSV) will be paid, GSV factors percentage of basic premium paid, below is the illustration:

Policy Year

As a percentage of basic premium paid

1

0

2

30

3

30

4-7

50

8-10

55

11-15

60


You want a loan against your policy – Loan facility is available under this policy.

 

Exclusions

If the life assured, commits suicide, within a year of policy start the premiums paid till date, 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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