SBI Life – Smart Power Insurance – Overview
SBI Life – Smart Power Insurance is a unit-linked non-participating plan that provides the facility of both insurance and investment. This plan offers an option to customize the plan and hence offers life insurance with investment at a very affordable rate. On the death of the policyholder, his/her nominee gets the Fund Value or Sum Assured, whichever is high and upon maturity of the policy, the insured gets the lump sum value. This ULIP provides the policyholder two fund options to choose from.
SBI Life – Smart Power Insurance – Key Highlights
- This plan gives policyholder an opportunity to secure the financial future of his/her family without any hassle.
- The plan offers inbuilt rider – Accelerated Permanent and Total Disability.
- The customization feature of this plan allows an insured to increase the cover.
- The two fund options available under this plan are – Smart Fund and Trigger Fund.
- The plan has two options to invest in, which are – Increasing Cover Option and Level Cover Option.
- Partial withdrawal is available from the 6th policy year.
- Provision of market-linked returns in reasonable premiums available.
SBI Life – Smart Power Insurance – Eligibility Criteria
An individual has to fulfill the following criteria for purchasing Smart Power Insurance plan of SBI Life:
|Entry Age||18 years||45 years|
Note: The sum assured can never be more than Rs.1 Crore in any case.
|Higher of [(10 X AP) or (0.50 X Term X AP)]||20 X AP|
|Maturity Age||65 years|
|Policy Term||10 years, 15 to 30 years (both inclusive)|
|Modes of Premium||Monthly/ Quarterly / Half-Yearly / Yearly|
|The term of Premium Payment||Same as Policy Term|
|Premium Amount (x 100)||Minimum||Maximum|
|Monthly||Rs.2, 000||No Limit|
|Quarterly||Rs.5, 500||No Limit|
|Half-Yearly||Rs.9, 500||No Limit|
|Yearly||Rs.15, 000||No Limit|
SBI Life – Smart Power Insurance – How Does It Work?
To understand the working of this plan, let us take an example, wherein:
- Premium = Rs.50, 000
- Premium Payment Term = 30 years
- Sum Assured = Rs.5, 00, 000
- Plan Option = Increasing Cover
- The Sum Assured can increase by 10% from the 6thyear and after that in five years.
The increase in sum assured for 30 years is shown in the below table:
|Policy Year||1 – 5||6 – 10||11 – 15||16 – 20||21 – 25||26 – 30|
|Sum Assured||5, 00, 000||5, 50, 000||6, 00, 000||6, 50, 000||7, 00, 000||7, 50, 000|
SBI Life – Smart Power Insurance –Benefits
The benefits offered by this plan are:
Upon completing the policy term, the fund value is paid to the policyholder.
The death benefit higher of the Sum Assured or Fund Value is paid to the nominee in case of the death of the policyholder with the minimum of 105 percent of the total basic premiums that are paid till the death of the insured.
An insured is eligible to get the income tax benefits as per the laws of the Income Tax, which may change with time.
In Built Accelerated Permanent and Total Disability Benefit
100% of the death benefit is paid instantly in case of permanent and total disability due to sickness or accident and the policy terminates.
SBI Life – Smart Power Insurance – Key Features
The key features of this policy are:
Fund Options: The two fund options available under this plan are:
Smart Fund Option
As per the risk appetite of the policyholder, he/she can select to invest in any of the seven fund options mentioned below:
- Top 300 Fund
- Equity Fund
- Equity Optimiser Fund
- Balanced Fund
- Growth Fund
- Money Market Fund
- Bind Fund
Trigger Fund Option
In this fund option, the insurance company invests the money of the policyholder as per the trend of the equity market. In this way, more funds are allocated in the equity funds, which help to boost the fund value.
For the cases wherein the premium is paid monthly, the grace period granted is 15 days. For quarterly, half-yearly, and yearly payments, the grace period is 30 days.
An insured has the option to revive his/her lapsed policy within two years of the first premium that was unpaid by clearing all the dues. The revival depends on the terms and conditions applied by the insurance provider.
Free Look Period
The period during which the policy can be returned is known as Free Look Period. So, if a policyholder is not satisfied with the inclusions and exclusions of the policy or with its terms and conditions, then he/she can return it within 30 days of its purchase provided the policy is bought through distance marketing. However, if the policy is purchased through some other mode, then the free look period becomes 15 days.
The best part of investing in ULIP is that the policyholder can switch among the fund options provided in the policy. However, the allowed number of free switches depends upon the policy provider and under this policy only two free switches are provided by SBI Life Insurance Company. For every extra switch, Rs.100 is charged.
It is allowed to make partial withdrawals from the 6th policy year. In one policy year, an insured can make two partial withdrawals for free and he/she can make only four partial withdrawals in one year. The minimum amount that one can withdraw in one partial withdrawal is Rs.2, 000 whereas the maximum permitted amount is 15% of the total Fund Value.
There is no option of top up.
Change in the Selected Sum Assured
A policyholder can change the sum assured as per the requirements. He/she can increase or decrease it.
SBI Life – Smart Power Insurance – Exclusions
If the policyholder commits suicide within one year of the policy start date or from the revival date, then the policy becomes cancel and only the fund value as on the death date of the policyholder is paid to the nominee.
SBI Life – Smart Power Insurance – FAQs
Question 1: Will I be able to surrender my policy during the first five years of policy purchase?
Answer: Yes, you can, but in that case, the fund value is transferred to the ‘Discontinued Policy Fund’ and a minimum interest rate that you will get in this fund will be 4% per annum. Moreover, a fee of fund management is deducted and you will be able to withdraw the fund value only after completing five years.
Question 2: What will happen, if I surrender my policy after completing five years?
Answer: In this case, you will get the fund value immediately.
Question 3: Can I get a loan against my policy?
Answer: No, you cannot take any loan against this policy.