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SBI Life Smart Power Insurance Plan
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SBI Life Smart Power Insurance Plan Review
SBI Life Smart Power insurance is a non-participating unit-linked insurance plan which takes care of your insurance as well as investment needs. It offers life cover at reasonable premium and liquidity to meet financial needs. On death, nominee will get the Sum Assured or Fund Value, whichever is higher and on Maturity policy holder will get lump sum value. You can choose across 2 plan options, to opt for the sum assured as per your requirement.
How does the plan work?
Illustrated with an example:
Premium – Rs. 50,000
Premium Paying Term – 30 years
Plan option – Increasing cover
Sum assured – Rs. 5, 00,000
Sum assured increase – by 10% from 6th year and thereon every 5 years. Policy year wise, Increase in sum assured for 30 years, shown below:
Policy Year
1-5
6-10
11-15
16-20
21-25
26-30
Sum Assured (in Rs.)
5 lacs
5.5 lacs
6 lacs
6.5 lacs
7 lacs
7.5 lacs
Key Features of SBI Life Smart Power Insurance Plan
Two plan options –
- Level cover option – sum assured chosen at inception remains constant throughout the tenure
- Increasing cover option – sum assured increases by 10% from 6th year and thereon every 5 years.
Inbuilt Accelerated Total & Permanent Disability (TPD) benefit
Two Investment fund options to choose from
2 free switches in a year
Liquidity through partial withdrawals
COMPARE THIS PLAN WITH OTHER ULIP PLANS
Benefits of SBI Life Smart Power Insurance Plan
Death Benefit – In case of death of the policyholder, the nominee gets the higher of the sum assured under the plan or the Fund Value at the prevailing NAV, with a minimum of 105% of premium paid till date.
Maturity Benefit – The policyholder would get the Fund Value at the prevailing NAV for the amount invested in the Bond, Equity and Money market instruments.
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 Power Insurance Plan
Particulars
Minimum
Maximum
Entry Age (in years)
18
45
Sum Assured
Higher of [(10 x AP) or (0.50 x Term x AP)]
Maximum: 20 x AP
Plan type
Regular
Maturity Age (in years)
65
Policy Term (in years)
10, 15 to 30
Premium frequency
Yearly / Half-yearly / Quarterly / Monthly
Premium Paying Term(in years)
Same as policy Term
Premium range*100
Premium Frequency
Minimum (in Rs.)
Maximum (in Rs.)
Yearly
15,000
No Limit
Half Yearly
9, 500
Quarterly
5,500
Monthly
2,000
- Where, AP is Annual premium
- Maximum Sum Assured cannot exceed Rs. 1 crore
Additional Features and Benefits of SBI Life Smart Power Insurance Plan
Investment Fund Options – Under this plan the policy holder gets the following fund options:
Trigger fund option - Let the company decide to invest your money, considering the equity market swings. Accordingly, the funds will be allocated more in equity funds, to help boost fund value.
Smart fund option – Depending upon your risk appetite, you can choose to invest from 7 varied funds below:
Equity Fund
Top 300 Fund
Equity Optimiser Fund
Growth Fund
Balanced Fund
Bond Fund
Money Market Fund
Portfolio Transfer option - You can opt to change the selected fund option – Trigger Fund or Smart Funds, at any Policy Anniversary Date.
Top-up - Not allowed.
Switching - You can switch across the 7 investment fund options. 2 switches are allowed free of charge in a Policy Year.
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or life insured is at least 18 years old. Two free partial withdrawal is allowed in one policy year. A maximum of 4 partial withdrawals are allowed in one policy year. The minimum amount of partial withdrawal should be Rs.2, 000 and maximum up to 15% of Fund Value.
Change in Sum Assured - Sum assured can be varied (increased or decreased) as per you needs.
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.
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 – Surrender is allowed any time of the policy; however the minimum NAV guarantee would not apply.
If surrender is requested during the first 5 Policy Years:- Then according to the lock-in condition, the Fund Value will be transferred to the 'Discontinued Policy Fund'. You will earn a minimum interest rate of 4% p.a. on this Fund. The fund management fee will be deducted and the Fund Value will be payable after completion of 5 policy years.
If the surrender is requested any time after completion of 5th Policy Year, then the Fund Value will be paid immediately to the policyholder.
You want a loan against your policy – Loan facility is not available under this policy.
Exclusions
If the life assured, commits suicide, within a year of policy start or from the date of revival – The fund value as on date of death intimation shall be paid and the policy will be cancelled.
