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SBI Life Smart Swadhan Plus Plan
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SBI Life Smart Swadhan Plus Plan Review
The SBI Life Smart Swadhan Plus Plan is a traditional, non-participating Term Assurance plan which promises the return of premiums paid if the plan matures.
Highlights of the SBI Life Smart Swadhan Plus Plan
This is a traditional Term Assurance plan with return of premium option in which bonuses are not declared.
Premiums can be paid at once (Single Premium), for a limited period (Limited Premium) or for the entire policy duration (regular Premium).
Sum Assured is paid on death during the plan tenure.
The premiums paid are returned on surviving till maturity.
Working of the SBI Life Smart Swadhan Plus Plan
Premiums are to be paid as per the chosen frequency, i.e. single, limited or regular.
If the insured dies when the plan is in continuation, the Sum Assured on death is paid.
If the policyholder survives till maturity, the premiums paid are returned.
COMPARE THIS PLAN WITH OTHER TERM PLANS
Benefits and Features of SBI Life Smart Swadhan Plus Plan
Maturity Benefit – When the plan matures, 100% of the premiums paid during the plan term would be returned.
Death Benefit – If the insured dies during the plan tenure, the Sum Assured on death is paid. Sum Assured on death depends on the frequency of premium payment.
For Single Premium Plans Sum Assured on death would be higher of:
Basic Sum Assured
1.25 times the Single Premium
Maturity Benefit
For limited and regular premium plans the Sum Assured on death would be higher of:
Basic Sum Assured
10 times the annual premium paid
Maturity benefit
105% of all premiums paid till death
Loan –Loans are not allowed under the plan
Bonus – Bonuses are not declared under the plan since it is a non-participating plan
Tax benefit – 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.
Single Premium
Limited Premium for 5, 10 or 15 years
Regular Premium
Sum Assured
Rs.5 lakhs
No limit
Premium Frequency Loading
Half-yearly – 52% of annual premium
Quarterly – 26.50% of annual premium
Monthly – 8.9% of annual premium
Premium payment mode
Monthly, quarterly, half-yearly and annually or Single Premium
Additional Benefits of SBI Life Smart Swadhan Plus Plan
Riders – No additional riders are available with the plan
Premium Discounts – If a higher amount of Sum Assured is chosen, the company provides premium rebates. This rebate is allowed per thousand Sum Assured for Sum Assured levels above Rs.7.5 lakhs.
Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly or quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.
Free Look Period – 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.
Premium Illustration
The following chart shows the premium rates for various combinations of tenure, age and Sum Assured (SA).
The tabulated rates are:
Age
Term – 10 years
Term – 20 years
Term – 30 years
SA – 10
lakhs
SA – 25
lakhs
SA – 10
lakhs
SA – 25
lakhs
SA – 10
lakhs
SA – 25
lakhs
30 years
12,520
29,800
6,980
15,950
6,480
14,700
35 years
14,870
35,675
9,200
31,500
8,610
20,025
40 years
19,560
47,400
12,620
30,050
11,660
27,650
Exclusions in SBI Life Smart Swadhan Plus Plan
If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable
If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force
Non-Payment of premium in SBI Life Smart Swadhan Plus Plan
Premiums have to be paid for at least 2 years or 3 years depending on the premium paying tenure chosen after which the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least 2 or 3 full years’ premium has been paid depending on the premium paying term, the policy would become a paid-up policy if future premiums are not paid. Paid-up is available only in limited premium plans. The Sum Assured would be reduced and would be called the Paid-up Sum Assured
Death Benefit – On death, the Paid-up Sum Assured on death would be paid which can be calculated as:
Sum Assured on death* (number of Premiums Paid / total number of premiums payable)
Maturity benefit – On maturity the Paid-up Sum Assured on maturity would be paid which can be calculated as:
Maturity benefit* (number of Premiums Paid / total number of premiums payable)
Surrendering the policy
For limited premium plans
Surrender is allowed only after the policy becomes paid-up. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
The SSV would be declared by the company based on its performance and would be calculated as:
Basic premiums paid * SSV factors
For Single Premium Plans
Single premium plans can be surrendered anytime during the plan tenure. On surrender higher of the GSV or the SSV would be payable.
GSV if plan is surrendered within first 3 years – 70% of the Single premium
GSV if plan is surrendered after 3 years - 90% of the Single premium
SSV is declared based on the performance of the company and would be SSV factor* Single premium
Revival
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.
