SBI Life Smart Scholar Plan

SBI Life Smart Scholar Plan

by Editor

SBI Smart Scholar Plan aims to build the future of your child. It is a Unit Linked Child policy which secures the future of your children even if you are not around anymore to take care of them. This plan aims to provide life coverage (insurance) as well as returns in the capital market to help you gain enough corpuses. It eventually helps in accumulating a substantial corpus for the future of your child.

Major Highlights of SBI Life Smart Scholar Plan

This plan is a Unit Linked Insurance Plan (ULIP), which any individual can adopt for their children. However, the age of their children must be between 0 and 17.

  • The individuals can pay their premium either for a limited tenure on periodic basis or as one lump-sum amount.
  • The individuals can enjoy two inbuilt rider such as the accident benefit and Premium Waiver under this plan.
  • In addition to its growth in the market, the loyalty additions are added to the value of the fund.
  • As far a risk factor is concerned, the individuals can check and invest in 7 different funds under this plan.

Functioning of SBI Life Smart Scholar Plan

The policyholders should decide the premium they want to pay prior to buying this plan. Let’s check the options of 7 funds available with the plan:

  • Bond fund
  • Balanced fund
  • Money market fund
  • Growth fund
  • Equity fund
  • Equity optimiser fund
  • Top 300 fund
  • If the policyholder passes away during the period of the plan, the death benefit would be given to her or his nominee. In such event, the future premiums would be waived and will be paid by the company. The interesting fact about the plan is that on maturity, the value of the fund is paid to the child again.
  • If the plan gets maturity, the benefit of the maturity is paid.

Features and Benefits of SBI Smart Scholar Plan

Maturity Benefit

At the time of maturity, the value of the fund would be available on the date of the maturity and would be offered to the nominee or beneficiary. There will be another opportunity for the beneficiary. The beneficiary would get the value of the fund in instalments over the next 5 years after the maturity takes place under the settlement option.

Death benefit

The insured child would enjoy various death benefits under this plan. In case the parent of the insured passes away due to any reasons except for the accident, the higher of the below enlisted options will be paid to the child:

  • Sum assured
  • 105 % of the all the premiums paid till the date of death.
  • Owing to the inbuilt premium waiver benefit, the unpaid future premiums would be waived off and the plan will continue for the remaining time. The premium would be credited by the company into the fund value every year. However, on the time of maturity, the remaining fund value would be provided by the company.

Bonus

Being a ULIP plan, the bonus is not expressed.

Loyalty Additions

The plan gathers the loyalty additions that are engaged to the value of the fund at particular intervals depending on the time of the plan.  The addition value would be:

1% X the average fund value on the 1st day of the last 24 months.

Loan

The policyholder cannot get any loan assistance under this plan.

Tax benefit

The policyholder can enjoy tax exemption on paying of the premiums under the section 80C up to the limit of Rs. 1.5 lakhs. The maturity benefit and the death benefit would be exempted under the section 10(10D) of the Income Tax Act.

Eligibility criteria for SBI Life Smart Scholar Plan

Only Indian residents can buy this plan. The eligibility criteria are given below:

 MinimumMaximum
Child’s entry age (last birthday)0 years17years
Parent’s entry age (last birthday)18 years57 years
Child’s maturity age(last birthday)18 years25 years
Parent’s maturity age(last birthday)NA60 years
Tenure of the plan8 years25 years
Premium PayableSingle premium- Rs.75,000

Premiums for limited for 5 to 7 years:

Monthly- Rs.4000

Quarterly-Rs.10000

Half-yearly-Rs.16000

Yearly-Rs.24000

Premium of limited period for 8 years and above:

Monthly- Rs.4500

Quarterly-Rs.12000

Half-yearly-Rs.25000

Yearly-Rs.50000

No limit
Payable of Premium termSingle or Separate premium or 5 years to 25 years. 
Sum AssuredLimited Premium:

Below 45 years of age:

Higher of 10*annual premium or 0.50* term*yearly premium

Above 45 years of age:

Higher of 7*yearly premium or 0.25*term*yearly premium

Single premium:

Single premium paid*1.25

Limited premium:

20* yearly premium

Single premium:

Age below 45 years:

5*Single premium paid

Age above 45 years:

1.25*Single paid premium

Mode of the premium paymentSingle premium or monthly, quarterly, half-yearly, and yearly 

The Exact Charges in SBI Life Smart Scholar Plan

Being a ULIP plan, the policyholders are obliged to maintain certain charges.

Premium Allocation Charge

prior to crediting of premium into the fund, certain charge is cut on receipt of each premium. Those charges are given below:

Year of the policySingle PremiumLimited premium
13.006.00%
2NA4.50%
3NA4.50%
4NA4.00%
5NA4.00%
6NA1.00%
7NA1.00%
8NA1.00%
9NA1.00%
10NA1.00%
11 onwardsNANil

The charges for policy administration

the monthly charge of Rs.50 is deducted from the fund at the beginning of each month.

The charges for fund management

This charge depends on the kind of fund the policyholder selected and impose charge on a daily basis.

                        Fund Type                               Charge
Money market fund0.25% per annum
Discontinuance Policy Fund0.50% per annum
Balance fund1.25% per annum
Bond fund1.00% per annum
Growth fund1.35% per annum
Equity fund1.35% per annum
Equity Optimiser Fund1.35% per annum
Top 300 Fund1.35% per annum

Discontinuance charge

The charge is applicable for those policies which are discontinued. The charges are given below:

Discontinuance yearYearly Premiums up to Rs.25,000Yearly premiums above Rs.25000
1Value of the fund up to maximum Rs.3000 or lower of 20% of yearly premium.Fund value may up to maximum of Rs.6000 or lower of 6%
2The value of the fund may reach up to maximum of Rs.2000 or the lower of 15% of yearly premiumThe fund value may reach up to the maximum of Rs.5000 or the lower of 4% of yearly premium
3The value of the fund reaches up to the maximum of Rs.1500 or lower of 10% of yearly premium.Lower of 3% of yearly premium or the value of the fund reaches up to a maximum of Rs.4000
4The value of the fund reaches up to the maximum of Rs.1000 or lower of 5% of yearly premium.Lower of 2% of yearly premium or value of the fund reach up to the maximum of Rs.2000
5 year onwardsNilNil

For the plan of single premium plan

Discontinuance yearSingle premiums up to Rs. 25,000Single premiums above Rs.25000
1Lower of 2% of yearly premium or the value of fund up to maximum of Rs. 3000Lower of 1% of yearly premium or the value of the fund may reach up to maximum of Rs.6000
2Lower of 1.5% of yearly premium or the value of the fund may reach up to Rs.2000Lower of 0.50% of yearly premium or the value of the fund may reach up to Rs.5000
3Lower of 1% of yearly premium or the value of the fund may reach up to Rs.1500Lower of 0.25% of yearly premium or the value of the fund to a maximum of Rs.4000
4Lower of 0.5% of early premium or the value of the fund up to the maximum of Rs.1500Lower of 0.25% of yearly premium or the value of the fund upto the maximum of Rs.2000
 5 year onwardsNilNil

The Extra Benefits of SBI Life Smart Scholar Plan

Riders

Under this plan, the policyholder will enjoy two in- built riders. The premium waiver Benefit Rider waives the premiums of the future if the insured person dies. In the rider of the Accidental benefit, the sum assured should be payable on the death occurred due to accident.

Partial withdrawals

After completing 5 years, the partial withdrawal is allowed under this plan. The policyholder is allowed to withdraw for free once in a year otherwise Rs.100 would be deducted on per withdrawal. The policyholder is allowed to withdraw Rs.5000 and is later allowed to withdraw multiples of Rs.1000 to maximum of 15% of the value of the fund.

Grace period

The policyholder is allowed to enjoy the grace period of 30 days for half-yearly, quarterly and annual premium payment. They will get the grace period of 15 days for paying the premium for monthly mode.

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