SBI Life Smart Elite Plan

SBI Life Smart Elite Plan

by Editor

SBI Life – Smart Elite – Overview

It is a Non-Participating Unit Linked Insurance Plan that offers the insured an opportunity to pay the premiums only single term or limited term, but keep protected and invested for a longer period of time. The insured has full flexibility to choose the policy term, premium amount, and payment amount that completely suits your needs.

SBI Life – Smart Elite – Key Highlights

  • The plan offers long term market linked returns that give the best returns.
  • This plan provides 2 options – Platinum Option and Gold Option.
  • From the 6th year of the plan, no charge for premium allocation is applicable.
  • Fund redirection and fund switching facility are provided.

SBI Life – Smart Elite – Eligibility Criteria

Any individual who wishes to purchase the SBI Life – Smart Elite plan must fulfill the below mentioned eligibility criteria:

 MinimumMaximum
Entry Age18 Years60 Years
Sum AssuredFor LPPT

– For the age that is below 45 years: 10 X (AP) Annual Premium

-For the age that is between 45 years & above: 7 X AP

 

For Single Premium (SP)

-For the age that is below 45 years: 1.25 X SP

-For the age that is between 45 years and above: 1.10 X SP

 

For LPPT  –

For all aged people below 45 years: 20 X AP

For SP

-For all aged people: 5 X SP

 

Policy Term5 years to 20 years
Minimum Limited Premium Amount (X 100)MonthlyRs.12, 500
QuarterlyRs.37, 500
Half-YearlyRs.75, 000
YearlyRs.1, 50, 000
Minimum Single Premium Amount (X 100)Rs.20, 000
Maximum Single/ Limited Premium Amount (X 100)No Limit
Premium Payment TermFor Limited Premium Payment Term – 5 years or 8 years or 10 years.
 In case of Single Premium  – Single Payment
Modes of PremiumMonthly/ Quarterly/ Half-Yearly / Yearly / Single

SBI Life – Smart Elite – How Does It Work?

In the Single Premium Payment Mode of this plan, the premium should be paid a lump sum amount and within a limited period for Limited Premium Payment Mode.

Basically, this policy provides two options for protection – Platinum and Gold. An insured can choose an option from any of these two depending upon his/her requirement and life stage. If one selects a Gold option, then he/she gets higher from the fund value and sum assured as a death benefit, however only if it is 105% of the total premiums that are paid till date. On the other hand, if one selects the Platinum Option, then double Death Benefit of this plan that is equal to the Fund Value + Sum Assured is paid, however, it should be 105% of the total premiums that are paid till date.

If the insured survives till the end of the plan tenure, then the Fund Value as Maturity Benefit is paid to the insured and insurance policy gets terminated. This plan also covers the inbuilt riders of Accidental Total and Permanent Disability and Accidental Death benefit.

SBI Life – Smart Elite – Benefits

The benefits offered in this plan are:

Death Benefit

The death benefits offered under this plan are:

  • For Platinum Plan: The Death Benefit equal to the sum assured plus fund value is paid with a minimum of 105% of all the premiums paid till the death of the policyholder.
  • For Gold Plan: In this case, higher of the Fund Value or Sum Assured is paid as Death Benefit with at least 105% of the total premiums that are paid until the death of the policyholder.

Maturity Benefit

The Fund Value as maturity benefit is paid upon completion of the Policy Term.

Tax Benefits

An insured is eligible to get the tax benefits according to the income tax rules in India. The laws of income tax in India change with time so one should keep a track of these.

Riders or In-built Benefits

Accidental Permanent and Total Disability benefits and Accidental Death benefits are in-built in the plan.

SBI Life – Smart Elite – Key Features

The key featured offered in this plan are:

Fund Options

There are four fund options available under this plan for investment:

  • Equity Elite Fund II
  • Bond Fund
  • Balanced Fund
  • Money Market Fund

Riders

This plan does not offer any additional riders, however, the inbuilt riders as Accidental Permanent and Total Disability (Accidental TPD) and Accidental Death benefits are covered in it.

Partial Withdrawal

The partial withdrawal is allowed from the 6th year of the policy. Under this plan, an insured is allowed to do one partial withdrawal for free in each policy year and after which Rs.100 is charged for every withdrawal. One is allowed to do only two partial withdrawals in 1 policy year and a total of five in the entire tenure of the policy, which can be 10 years or less. The minimum amount that one can partially withdraw is Rs.5, 000 and the maximum is 15% of the Fund Value.

Switching

This plan allows two free switches every year and the minimum amount that one can switch is Rs.5, 000. If one wants to switch after the allowed free switches, then he/she has to pay Rs.100 for each switch.

Grace Period

The grace period is 15 days if the premium payment frequency is monthly. It becomes 30 days if the frequency of premium payment is yearly, half-yearly, or quarterly.

Surrender

An insured can surrender the policy by paying the surrender value as per the surrender time.

Free Look Period

The free-look period of 30 days is given if the policy is purchased through distance marketing. However, it becomes 15 days for all other modes.

Policy Revival

A policyholder can revive the policy within 2 years of the 1st missed premium. However, it depends on the terms and conditions of the policy as well.

SBI Life – Smart Elite – Applicable Charges

Charges of Policy Administration

The charges for administrative work come under this plan. It is deducted by canceling the units per month.

Premium Paying Term TypeCharges of Policy Administration
Single Premium Payment TermRs.50/ month
Limited Premium Paying TermRs.60/ month

Charges of Premium Allocation

The insurance company deducts this charge from the premiums that an insured pays:

Policy YearThe charge of Premium Allocation for Limited Premium Payment TermSingle Premium Policy
5 Years8 Years10 Years
1st Year3%3%3%2%
2nd Year3%3%3%NA
3rd Year3%3%3%NA
4th Year3%3%3%NA
5th Year3%3%3%NA
6th Year OnwardsNANILNILNA

Charges of Fund Management

The deduction of this charge is performed by adjusting the units’ NAV daily.

Type of FundCharge
Index Fund1.25% per annum
P/E Managed Fund1.35% per annum
Elite Equity Fund1.25% per annum
Balanced Fund1.25% per annum
Money Market Fund0.25% per annum
Bond Fund1.00% per annum
Discontinued Policy Fund0.50% per annum
Money Market Fund0.25% per annum

Charges of Discontinuation

This charge is applicable when the policyholder discontinues the plan before the policy tenure ends.

Discontinuation YearCharge of Discontinuation
1st Year6% X (FV or AP) whichever is lower, but a maximum of Rs.6, 000
2nd Year4% X (FV or AP) whichever is lower, but a maximum of Rs.5, 000
3rd Year3% X (FV or AP) whichever is lower, but a maximum of Rs.4, 000
4th Year2% X (FV or AP) whichever is lower, but a maximum of Rs.2, 000
5 Years onwardsNIL

Charges of Accidental Benefits

Rs.0.50 per annum / Rs.1, 000 sum assured is deducted monthly through the cancellation of units.

Mortality Charges

The mortality charge is given for getting the Life Cover as per the Sum Assured. This charge is dependent on the mortality rate which is different for different age groups and the cover amount being provided by the policy.

Medical Costs on Revival

The costs of medical expenses incurred are borne by the insured through units’ cancellation which can be up to Rs.3, 000.

SBI Life – Smart Elite – Exclusions

The conditions that SBI Life – Smart Elite plan do not cover are:

  • Suicide: The policy does not cover the death of the policyholder due to suicide. If the insured commits suicide within one year of the policy purchase or renewal of the policy.
  • Accident incurred due to drug abuse, infection, war, self-inflicted injury, criminal acts, civil commotion, aviation, etc. are not covered in the policy.

SBI Life – Smart Elite – FAQs

Question 1: What happens if one stops paying the premiums of the policy before five years?

Answer: In this case, the insurance cover ceases and the fund value that is net of all the discontinuation charges is sent to the Discontinued Policy Fund. This fund earns the minimum interest rate as per the rules of State Bank of India savings bank account. However, the proceeds through this are payable after the fifth year of the policy. If the insured dies during this period, then the accumulated value of the fund is given to the nominee.

Question 2: I want to surrender my Smart Elite policy, what will happen, if I do so?

Answer: If you want to surrender your policy before five years, then you will not be eligible to get the discontinuation/surrender charge as well as the fund value and your policy will be terminated on an immediate basis.

Question 3: Is the facility of loan available against this policy?

Answer: No, this policy does not offer any loan facility against it.

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