SBI Life Smart Wealth Builder Plan

SBI Life Smart Wealth Builder Plan

by Editor

SBI Life – Smart Wealth Builder– Overview

SBI Life – Smart Wealth Builder is a Unit Linked Investment Plan (ULIP), which is non-participating in nature. The plan guarantees to offer some additions as per the policy terms. As a death benefit, the nominee gets the fund value or sum assured, whichever is higher. The lump sum amount is given to the insured on the maturity of the plan.

SBI Life – Smart Wealth Builder – Key Highlights

  • A unit linked insurance plan that offers flexible premium payment options. One can select from any of the single, limited, or regular premium payment modes.
  • The facility of guaranteed addition as well increases the fund value.
  • The percentage of the guaranteed addition depends on the chosen term and chosen a premium payment option. The guaranteed additions are higher for higher terms.
  • The plan gives the facility to increase or decrease the sum assured from the 6th policy year.
  • Smart Wealth Builder plan also gives the facility to withdraw the Fund Value in 5 equal installments over the period of five years as soon as the policy term ends. This feature is provided under the Settlement Option of the Smart Wealth Builder plan.
  • The seven fund options available under this plan are:
    • Top 300 Fund
    • Equity Fund
    • Equity Optimizer Fund
    • Balanced Fund
    • Growth Fund
    • Money Market Fund
    • Bond Fund

SBI Life – Smart Wealth Builder – Eligibility Criteria

Any Indian fulfilling the below criteria is eligible to avail the Smart Wealth Builder plan:

Entry Age7 years60 or 65 Years
Maturity Age70 Years
Premium Paying Term (PPT) in YearsFor Regular Pay: Equal to Policy Term

For Limited Pay:

Policy Term of 10 Years – 5 / 8

Policy Term of 15 – 30 Years – 5 / 8 / 10

Policy Term (PT) in Years5 for Single Pay

10 for Limited and Regular Pay

Yearly PremiumSingle Pay – 65, 000

Regular Pay – 30, 000

Limited Pay – 40, 000

300, 000
Premium Paying FrequencyYearly
Sum AssuredSingle Pay:

1.25 x Single Premium for age < 45 years

1.1 x Single Premium for age > 45 years


Regular Pay:

Higher of (0.5 x Term x Annual Premium) or (10 x Annual Premium) for age < 45 years &

Higher of (0.25 x Term x Annual Premium) or (7 x Annual Premium) for age > 45 years

Single Pay:

1.25 x Single Premium for Age> 45 Years

3 x Single Premium for Age < 45 Years


Limited Pay:

15 x Annual Premium


Regular Pay:

20 x Annual Premium


SBI Life – Smart Wealth Builder – How Does it Work?

Smart Wealth Builder plan of SBI gives an opportunity to the policyholder to choose from three premium payment terms and premium payment options. The guaranteed addition is paid after every five years starting from the 10th policy year. Mentioned below are the flexible options to pay policy premium:

Type of Premium PaymentPremium Paying TermsPolicy Term (Years)
SingleSingle Premium is paid5 to 30
Regular5 / 8 / 10 years10 to 30
Limited5 / 8 years10 to 30

Once the policy matures and policy term gets over, the policyholder receives the Fund Value. One can collect this Fund Amount all at once instantly or can get it periodically for other two to five years. This period of amount withdrawal in a regular interval is known as Settlement Period and one can choose to withdraw the entire amount during this time.

If the policyholder dies during the policy term, then the nominee receives the lump sum amount which is equal to Fund Value or Sum Assured, whichever is higher. Moreover, if the insured dies during the settlement period, then the fund value that is remaining is paid to the nominee of the insured.

SBI Life – Smart Wealth Builder – Benefits

Death Benefits

The death benefit equal to the Sum Assured or Fund Value (whichever is higher) is given to the nominee in case of death of the insured.

Maturity Benefit

On completion of the policy term, the fund value is paid to the insured.

Tax Benefits

Under this plan, the policyholder can avail the following tax benefits:

  • The tax deduction under Section 80C of the Income Tax Act is given to the policyholder. If during a financial year, the premiums paid to exceed by 10% of the Sum Assured, then the benefit is limited up to 10% of the total Sum Assured.
  • Death benefits get a full exemption.
  • At the situation of surrender or maturity of Smart Wealth Builder plan, tax benefit under Section 10D of the Income Tax Act is given to the policyholder. However, the premiums must not exceed than 10% of the sum assured in any year during the policy term.

SBI Life – Smart Wealth Builder – Key Features

Fund Options

The plan provides seven different fund options for investment, which are:

  1. Top 300 Fund
  2. Equity Fund
  3. Growth Fund
  4. Equity Optimizer Fund
  5. Balanced Fund
  6. Money Market Fund
  7. Bond Fund

Partial Withdrawal

Every year, a policyholder is allowed to make one free partial withdrawal. In this way, every additional switch after this charges Rs.100.

Fund Switching

ULIP allows fund switching; however, the number of free switches allowed every year depends upon the insurance provider. SBI Life – Smart Wealth Builder allows making two free switches every year. In this way, each additional switch is chargeable and SBI in this ULIP plan charges Rs.200 for every additional switch.

Free Look Period

If a policyholder is not pleased with the terms and conditions of the policy or is not satisfied with the coverage provided, then he/she can cancel the policy within 15 days of purchase, provided no claims have been made during this time.

Surrender Benefits or Policy Termination

A policyholder can surrender his/her SBI Life – Smart Wealth Builder plan after completing five years. However, if he/she surrenders the policy before five years, then the fund value after deducting Discontinuation Charges is moved to the Discontinued Policy Fund. Here the fund value gets at least 4% growth per annum. Moreover, the Fund Management Charges will also be applied. However, surrendering or terminating plan after 5 years attracts complete fund value without deduction of Discontinuation Charge.

Grace Period

A grace period of 30 days is given to every policyholder for premium payment.

Change in Sum Assured

If a policyholder wants, he/she can alter the selected sum assured. An individual can either decrease it or increase it. However, the conditions to change the sum assured are mentioned below:

  • During policy tenure, an insured can change his/her sum assured only three times.
  • All the premiums must be paid on time.
  • The funds are subject to underwriting approval.
  • The age of the policyholder should be below 50 years.
  • Premiums can be changed.
  • Once a Sum Assured is decreased, it cannot be increased during the entire policy tenure.
  • The insured must meet all the eligibility criteria.
  • The cost of all the medical bills has to be borne by the policyholder.

Premium Re-Direction

A policyholder can redirect his/her investments in other funds of his/her choice after completion of the 1st policy year. This re-direction is free of cost.