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SBI Life Smart Horizon Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.
SBI Life Smart Horizon Plan
 
SBI Life Smart Horizon Plan is a non-participating Unit Linked Insurance Plan (ULIP).
 
How it works – In this plan, premium needs to be paid for the entire policy tenure of 0 years or any year between 15 and 30.
 
In this plan, there is only 2% of Annualized Premium that is charged as Premium Allocation Charge in this plan in year 1 only and no charge is further deducted from year 2 onwards.
 
There are 3 investment options in this plan- Plan A: Dynamic Plan, where a larger proportion of money is invested in Equity Fund which decreases over time and the exposure in Bond Fund and Money Market Fund rises. This option is ideal for longer tenure; Plan B: Growth Plan, where the portfolio is automatically balanced to provide lesser volatility in the long run and Plan C: Flexible Plan, where there are 4 funds to choose from- Index Fund, Equity Fund, Balanced Fund and Bond Fund in multiples of 1%. A combination of 2 Plan Types can also be chosen.
 
This plan offers to increase and decrease Sum Assured from 6th year onwards according to change in lifestyle and has a range of 4 riders to choose from. On policy maturity, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.
 
However, if the Life Insured dies within the policy tenure, the higher of the Fund Value or Sum Assured subject to a minimum of 105% of total basic premiums paid till the time of death would be paid to the nominee as Death Benefit and the policy terminates.
 
 
Key Features of SBI Life Smart Horizon Insurance Plan
 
  • It is a Unit Linked Insurance Plan
  • In this plan, there is only 2% of Premium Allocation Charge in Year 1 and no charges from 2nd year onwards
  • There is an option of choosing hassle free investment management by way of Automatic Asset Allocation
  • There are 4 funds to choose from for investment purpose
  • A combination of Automatic Asset Allocation and the Active Fund Management options can also be opted for
  • In this plan, there is an option to increase or decrease the Sum Assured, from 6th year onwards
  • There are 4 riders in this plan- Criti Care 13 Rider, Accidental Death Benefit Linked Rider, Premium Payor Waiver Benefit Rider  and Income Sustainer Rider

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 
 
Benefits you get from SBI Life Smart Horizon Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of the Fund Value or Sum Assured subject to a minimum of 105% of total basic premiums paid till the time of death as Death Benefit and the policy terminates.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 
Eligibility conditions & other restrictions in SBI Life Smart Horizon Policy                   
 

 

 
Minimum
Maximum
Sum Assured (in Rs.)
For Ages below 45 yrs : Higher of (10 x Annual Premium) or (1/2 x Term x Annual Premium)
For Ages 45yrs & above: Higher of (7 x Annual Premium) or (1/4 x Term x Annual Premium)
20 X Annual Premium
Policy Term (in years)
10
30
Premium Payment Term (in years)
Equal to Policy Term
Entry Age of Life Insured (in years)
7
60
Age at Maturity (in years)
-
70
Annualized Premium (in Rs.)
24,000
74,000
Payment modes
Yearly /Half-yearly /Quarterly / Monthly
 
 
Additional Features and Benefits of SBI Life Smart Horizon Plan
 
Riders – There are 4 Additional Riders in this plan:
  1. Criti Care 13 Rider
  2. Accidental Death Benefit Linked Rider
  3. Premium Payor Waiver Benefit Rider
  4. Income Sustainer Rider
 
Investment Fund Options
In this plan, there are 3 Investment Options to choose from:
  1. Plan A: Dynamic Plan- where a larger proportion of money is invested in Equity Fund which decreases over time and the exposure in Bond Fund and Money Market Fund rises. This option is ideal for longer tenure. So, the funds under this option are:
    1. Equity Fund
    2. Bond Fund
    3. Money Market Fund
  2. Plan B: Growth Plan- where the portfolio is automatically balanced to provide lesser volatility in the long run. . So, the funds under this option are:
    1. Equity Fund
    2. Bond Fund
    3. Money Market Fund
  3.  Plan C: Flexible Plan- where there are 4 funds to choose from:
    1. Index Fund
    2. Equity Fund
    3. Balanced Fund
    4. Bond Fund
 
Top-up – is not allowed under this plan.
 
Switching – Switching is allowed from Plan A and B to Plan C and not vice versa. For switching under Plan C, the minimum amount of switch is Rs 5000 and there are 2 free switches each year in this plan. A charge of Rs 100 will be charged for any switch after the free ones.
 
Partial Withdrawal - is allowed from the 6th Policy Year onwards or the Life Assured is 18 years of age. This plan offer 1 free Partial Withdrawal in each Policy Year, post which there is a charge of Rs 100 for each withdrawal. A maximum of 2 Partial Withdrawals are allowed in one Policy Year and a maximum of 5 in the entire Policy Tenure of 10 years upto a maximum of 10 for Policy Tenure more than 10 years. The Minimum amount of Partial Withdrawal is Rs 5000 upto a maximum of 15% of the Fund Value.
 
 
Charges in SBI Life Smart Horizon Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
Year 1
2% of Annualized Premium
Year 2 onwards
NIL
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

Time of Deduction
Policy Administration Charge
Policy Inception
0.7% of Annualized Premium
Every Month
0.45% of Annualized Premium
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Index Fund
1.25% p.a.
Equity Fund
1.35% p.a.
Balanced Fund
1.25% p.a.
Bond Fund
1.00% p.a.
Money Market Fund
0.25% p.a.
Discontinued Policy Fund
0.50% p.a.
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
Medical Expenses on Revival— Cost of Medical Expenses incurred will be borne by the policyholder through cancellation of units upto a maximum of Rs 3000.
 
 
What happens if?
 
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to the savings bank account of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee. The policy can however be revived within a period of 2 years from the due date of the first unpaid premium.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to the savings bank account of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.

 
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