SBI Life Smart Scholar Plan

This is a Unit Linked Plan which is available to individuals who have children aged 0-17 years

• Premiums under the plan are payable for a limited tenure, regular tenure or in one lump-sum.
• There are two inbuilt riders in the plan which are, Premium Payor Waiver benefit and Accident benefit.
• Loyalty additions are added to the Fund Value in addition to the market-related growth.
• The plan has an option of 7 funds for investments according to the policyholder’s risk appetite.

A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.

A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid

On maturity, the Fund Value available on the maturity date would be paid to the beneficiary. The beneficiary, if wishes, can also avail the Fund Value in installments over a period of 5 years post the date of maturity under the Settlement Option. The beneficiary under the plan would be the policyholder, if he or she survives till maturity or the child if the insured dies during the plan tenure.

In case of death of the insured parent due to any reasons except accident,  higher of the following would be payable:

• Sum Assured
• 105% of the total premiums paid till death
  Due to the inbuilt Premium Payor waiver Benefit, future premiums would be waived off and the plan would continue for the remaining duration. The company would credit the premium into the Fund Value every year and on maturity, the available Fund Value would be paid.
  If the insured dies due to accident, in addition to the above benefits, an additional Accident Benefit Sum Assured would be paid under the inbuilt Accidental Benefit.
  If the child dies, nothing would be payable but the life insured can choose to terminate the plan upon which the Fund Value on the date of termination would be payable.

Being a ULIP plan, bonus is not declared.

The plan accumulates Loyalty Additions which are added to the Fund Value at specific intervals depending on the term of the plan. Loyalty Additions are added only in case of in-force policies. The value of the addition would be:
1% * average Fund Value on the 1st day of the last 24 months

Loan is not available under the plan.

Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.

Two in-built riders come with the plan. In the Accident Benefit rider, the Accident Sum Assured is paid on accidental death or Total Permanent Disability which is equal to the base Sum Assured subject to a maximum of Rs.50 lakhs. The Premium Payor Benefit rider waives the future premiums if the insured dies which are then paid by the company.

Partial withdrawals are allowed in the plan after a completion of 5 policy years. One withdrawal in a year is free after which a charge of Rs.100 per withdrawal would be applicable. The minimum amount of partial withdrawal is Rs.5000 and thereafter in multiples of Rs.1000 to a maximum of 15% of the Fund Value.

This facility enables the policyholder to change between funds whenever desired. Two free switches are free every policy year after which a charge of Rs.100 per switch would be levied. The minimum amount of switching should be Rs.5000.

This facility enables the policyholder to redirect subsequent premiums to another chosen fund from the second policy year. One redirection is free per policy year exceeding which Rs.100 per redirection would be levied.

The policy has a 5 year lock-in period. If premiums are discontinued within the first 5 years, the funds in the Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. This fund would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid.

If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid without deduction of any charges.

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.