India's 1st IRDAI Approved Insurance Web Aggregator
SBI Life Smart Guaranteed Savings Plan
views
views
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.
