SBI Life Saral Maha Anand

SBI Life Saral Maha Anand

by Editor

SBI Life – Saral Maha Anand – Overview

It is a unit linked non-participating investment plan that allows an insured to manage his/her investment as per his/her risk appetite. SBI Life Saral Maha Anand is a convenient and simple plan that enables an insured to choose his/her required life cover as per the minimum and maximum requirements.

SBI Life – Saral Maha Anand – Key Highlights

  • It is a Unit Linked Insurance Plan (ULIP) that has simple joining process and does not require any medical examination.
  • The plan provides guaranteed additions of maximum 30% of the total Annual Premium.
  • An insured does not have to give any premium allocation charge from the 11th policy year and hence it boosts the fund value.
  • Dual benefit of insurance cover and money market investment.
  • The plan provides three fund options:
    • Balanced Fund
    • Equity Fund
    • Bond Fund

SBI Life – Saral Maha Anand – Eligibility Criteria

 MinimumMaximum
Entry Age18 years55 years
Sum AssuredAge< 45 yearsAge >= 45 yearsAge < 45 yearsAge >= 45 years
10 X AP7 X AP20 X AP20 X AP
Maximum Maturity Age65 years
Modes of PremiumMonthly / Quarterly / Half-Yearly / Yearly
Policy Term10 years / 15 years / 20 years
Premium Rage (x 100)Premium FrequencyMinimum (Rs.)Maximum (Rs.)
Monthly2, 0002, 400
Quarterly5, 5007, 200
Half-Yearly9, 50014, 500
Yearly15, 00029, 000

SBI Life – Saral Maha Anand – Benefits

Maturity Benefit

The policyholder gets the fund value if he/she survives the term of the policy.

Death Benefit

The nominee gets higher of the Sum Assured or Fund Value in case of death of the insured and the policy terminates immediately. The minimum death benefit, at any point in time, must be 105% of the premiums paid.

Tax Benefit

The life insurance premiums up to Rs.1, 00, 000 that the policyholder pays are eligible to get deductions under Section 80C of the Income Tax Act. Moreover, the maturity benefits that an insured gets from this plan are also eligible for tax exemption under Section 10D of the Income Tax Act.

SBI Life – Saral Maha Anand – Key Features

Riders

The plan also provides some additional features in the form of riders that an insured can get by paying some extra premium. The rider that is offered with this plan is accidental death benefit.

Option to Switch

An insured is eligible to switch between different investment funds. The plan provides two free switches in one policy year and for additional switches, the insured has to pay Rs.2, 000.

Fund Options

The plan provides three investment fund options to switch from:

  • Equity Fund
  • Bind Fund
  • Balanced Fund

Partial Withdrawal

After completing five years with this policy, you are eligible to make partial withdrawals. The minimum partial withdrawal that an insured can do is Rs.2000 and the maximum that is allowed in this policy is up to 15% of the Fund Value. In addition to this, an insured can only make two partial withdrawals in one policy year. If the policy term is 10 years then an insured can make only five partial withdrawals in one policy tenure. However, for a policy term of 15 to 20 years, 10 partial withdrawals are allowed.

Surrender Benefits and Policy Termination

A policyholder is eligible to surrender the insurance policy after completion of five years. However, if he/she surrenders before five years, the fund value excluding the discontinuation charges is credited in the Discontinued Policy Fund wherein it earns the growth of 4% per annum. As soon as the policy completes its five years, the fund value available in the Discontinued Policy Fund is paid to the insured. However, if the insured surrenders this policy after the completion of five years, then the complete Fund Value until the surrender date is paid to the insured without deducting any charges.

Grace Period

A grace period of 30 days is provided for the premium payment.

Free Look Period

After receiving the policy documents, the policyholder is given a free look period of 15 days for reviewing the terms and conditions of the plan. If he/she finds the terms and conditions objectionable, then the insured is allowed to return the plan and get the refund. However, the complete amount is not refunded as it comes with some deductions. If one has purchased the policy through distance marketing mode, then he/she gets the free look period of 30 days.

SBI Life – Saral Maha Anand – Applicable Charges

The following charges are applicable on SBI Life – Saral Maha Anand plan:

Premium Allocation Charges

The premium allocation charges applicable to this policy:

Policy YearPremium Allocation Charges (%)
First6.25
Second3.75
Third3.75
Fourth3.75
Fifth3.75
Sixth3.00
Seventh3.00
Eighth3.00
Ninth3.00
Tenth3.00
Eleventh0.00

Charges of Fund Management

The charges of fund management applied to this plan are:

Fund NameFund Management Charges (% per annum)
Balanced Fund1.25
Equity Fund1.35
Bond Fund1.00

Other Applicable Charges

Switching Charges

The policy has a provision of two free switches in one policy year. However, after exhaustion of these two free switches, Rs.100 is charged for every additional switch.

Mortality Charges

The mortality charge is deducted through Fund Value on the first working day of every month of the policy tenure.

Miscellaneous Charges

The Company charges Rs.100 for issuing a duplicate copy of the yearly fund statement.

Charges of Partial Withdrawal

The policy provides one free partial withdrawal in one policy year, however, for every additional partial withdrawal, Rs.100 is charged.

SBI Life – Saral Maha Anand – Exclusions

The policyholder whether medically insane or sane, commits suicide within the 1st year of the policy issuance date, the policy will be terminated immediately and the SBI Life Insurance Company will only pay all the premiums that the policyholder has paid till date.

SBI Life – Saral Maha Anand – FAQs

Question 1: Please provide the list of documents required to purchase this policy?

Answer: The policyholder has to fill an ‘Application Form’ with his/her actual medical history with KYC documents and address proof. There can be a requirement of medical examination in some cases, but it entirely depends on the policy seeker’s age and sum assured requirement.

Question 2: What should I do, if I want to surrender my policy before completion of five years?

Answer: In this case, your insurance cover is ceased and the fund value after deducting the discontinuance charge is transferred to the Discontinued Policy Fund. The minimum interest rate provided in this fund is 3.5% per annum and the amount can be withdrawn only after completing the fifth policy year. If the insured dies in this period, then the accumulated Fund Value is paid to the policyholder’s nominee.

Question 3: What should I do, if I want to surrender my policy after completing five years?

Answer: In this case, the insurance ceases and the total fund value is paid immediately as well as policy is terminated.

Question 4: What will happen, if I stop paying the premiums of my policy after completing five years?

Answer: In this case, the total accumulated policy fund until the discontinuation date is paid to the insured and the policy terminates immediately.   

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