SBI Life Smart Wealth Builder Plan

End of Policy Year	Regular Premium Plan	Limited Premium Plan			Single Premium Plan
		PPT = 5 yrs	PPT = 8 yrs	PPT = 10 yrs
10	5%	5%	5%	5%	5%
15	15%	5%	10%	10%	5%
20	25%	10%	10%	15%	5%
25	35%	10%	10%	20%	7%
30	45%	10%	15%	25%	8%

Let me explain this with the help of an example - If you have taken a Regular Premium Plan and paying Rs. 40,000 as Annual Premium for a 30 year policy term, you would get Guaranteed Additions in the form for premiums as mentioned below. The Guaranteed Additions would be used to buy the Units of the Funds and would be credited to your plan. These are as shown in the cells shaded in blue.

At the end of the 10 policy years - You get 5% of Rs. 40,000 = Rs. 2,000 to buy Units
At the end of the 15 policy years - You get 15% of Rs. 40,000 = Rs. 6,000 to buy Units
At the end of the 20 policy years - You get 25% of Rs. 40,000 = Rs. 10,000 to buy Units
At the end of the 25 policy years - You get 35% of Rs. 40,000 = Rs. 14,000 to buy Units
At the end of the 30 policy years - You get 45% of Rs. 40,000 = Rs. 18,000 to buy Units

Plan Type	Minimum		Maximum
	Age < 45	Age >= 45	Age < 45	Age >= 45
Regular Premium	Higher of (10 x AP) or (0.5 x Term x AP)	Higher of (7 x AP) or (0.25 x Term x AP)	10 x AP	20 x AP
Limited Premium			15 x AP	15 x AP
Single Premium	1.25 x SP	1.1 x SP	3 x SP	1.25 x SP

AP - Annual Premium; SP - Single Premium
 
So at the time of buying SBI Smart Wealth Builder Plan you will have to decide on the premium amount which you want to pay. Once you decide on that, you will have to select the Sum Assured based on the table given above. That will decide the amount of cover you wish to have from the beginning.
 
In this plan you have the flexibility to make partial withdrawals. So the Death Benefit will be reduced to the extent of partial withdrawals made in the last 2 years for age on death below 60 years and for age on death 60 years of above, all partial withdrawals made from the age of 58 onwards.
 
 
Maturity Benefit 
 
At the end of the policy term, you will get the Fund Value.
 
You can also choose to take the maturity benefits in installments to get a regular flow of income. You can choose a period between 2 to 5 years from the date or maturity to get this regular payout. This period is called the Settlement Period. This is how it works:

• The funds will remain invested in the same funds that you are invested in. You will have to bear the investment risk. Which means that the markets may go up or down in this period and there is a chance that the Fund Value will change. 
• In the Settlement Period the Fund Management Charge would be applicable.
• You can choose to get the payments in monthly, quarterly half-yearly or annual mode.
• Once you decide on the number of years (between 2 to 5 years) in which to receive the payments and the frequency, the Fund Value would be divided by that count and the first payment would be made to you. 
• Every other payment would be based on the Fund Value divided by the balance number of installments. 
• At any point, you can choose to withdraw all the balance amount and stop the installments. 
• In case of death of the policyholder in the Settlement period, the remaining Fund Value will be paid to the nominee in lumpsum.

Charges in SBI Life Smart Wealth Builder Plan

Premium Allocation Charge
 
When you pay the premiums, this charge is deducted and then the balance amount is invested. So this charge is applied every time you make a premium payment. The charge is applicable as follows:

 

Fund Management Charge
 
While calculating NAV on a daily basis, the following percentage of the Fund Value would be deducted as per the rates mentioned below. You have the option of choosing the Funds which you want to stay invested in.

Policy Administration Charge
 
A monthly charge is deducted by cancelling the number of units which you hold. The charge applicable is as follows:

 

Policy Administration Charge
 
If you choose to discontinue your policy, the following charges would be deducted before making you a payout. This is as a % of the Fund Value or the Annual Premium.

For Single Premium Plans:

 

For Regular Premium Plans:
 

Switching Charge
You are allowed to make 2 free switches in your funds every year. Every additional switch will attract a Rs. 200 charge.
 
Partial Withdrawal Charge
You are allowed to make 1 free partial withdrawal every year. Every additional partial withdrawal will attract a Rs. 100 charge.
  
Mortality Charge
This charge is for providing the life insurance coverage for you at all times during the policy period. This is deducted by cancelling of Units you hold at the beginning of each month. 
 

Which are the Funds you can invest in SBI Life Smart Wealth Builder Plan?

 You have the following 7 fund options which you can choose to invest in. Depending on your risk profile, you should make this decision. The funds will be invested in the asset class within the ranges mentioned here. 

1. Equity Fund - this fund has high exposure to equity. This funds targets high returns in the long term. The Risk Profile is categorised as “High”.
 

2. Top 300 Fund - this funds seeks to provide long term capital appreciation by investing in the Top 300 companies of the National Stock Exchange based on their market capitalisation. The Risk Profile is categorised as “High”.
 
4. Growth Fund - similar to Equity Fund with small parts invested in Debt instruments. The Risk Profile is categorised as “Medium to High”.
 

Tax Benefits in SBI Life Smart Wealth Builder Plan

 
The premiums paid by you and the Maturity Benefits are exempted under Income Tax rules. Income tax laws are subject to change from time to time.

Other features related to premium payment

 
Free Look Period - In case you do not wish to continue with the policy for whatever reason, you can exit the plan within 15 days of receiving the policy document. For policy purchased through distance marketing, the free look period is 30 days.
 
The Fund Value would be returned to you based on the NAV of that day. Mortality charges for the few days, Medical test costs, taxes and agreement costs will be deducted though.
 
 
Grace Period - You will get a grace period of 30 days for payment of your annual premiums. Which means that you have 30 days even after the date or premiums have elapsed.
 
Surrendering the plan - Your funds are locked-in for 5 years. So you cannot get your money for 5 years after buying the policy. 
 
If you make the surrender request within the 1st 5 years, your investments will be moved to the Discontinued Policy Fund after deduction of Discontinuation Charge. This fund will guarantee a minimum return of 4%. Fund Management Charge will continue to apply.
 
If you make the surrender request after 5 years, your Fund Value will be given to you without deducting any Discontinuation Charges.
 
Click to download the SBI Life Smart Wealth Builder Brochure.
 
If you have any questions on the this plan, please drop a comment below and we would be happy to help.