SBI Life ULIP Plans

SBI Life ULIP Plans

by Editor

SBI Life Insurance Company

SBI Life Insurance is a joint venture between BNP Paribas Cardif and State Bank of India. While SBI is one of the largest state-owned financial and banking service providers, BNP Paribas is a French multinational financial and banking services organization having global headquarters in Paris.

In this collaboration, SBI owns 70.1% of the total share and BNP Paribas owns 26% of the share and other investors of this collaboration are MacRitchie Investments Pte. Limited and Value Line Pte. Limited, wherein each stakeholder owns 1.95% of the total share. The authorized capital of SBI Life Insurance is Rs.20 Billion (US $280 Million) and paid up capital of the company is Rs.10 Billion (US $140 Million).

SBI Life Insurance Company is a Public Limited company and is listed in the Indian Stock Exchange (NSE and BSE).

The company started its collaboration with the BNP Paribas in the year 2001. Initially, this joint venture was mainly dealing with bancassurance; however, gradually it has developed its business of selling life insurance products.

Apart from other insurance products Unit Linked Insurance Plans (ULIP) are some of the most preferred products of SBI Life Insurance Company.

About SBI Life ULIPs (Unit Linked Insurance Plans)

Unit Linked Insurance Plans (ULIPs) provide dual benefits of protection and investment. ULIP plans are best-suited for those who want to invest their money for a long term as the main objective of this investment instrument is to accumulate wealth for fulfilling future goals.

The State Bank of India Life Insurance provides an extensive range of Unit Linked Insurance Plans and offers a lot of flexibility and features to the policyholders. Resultantly, these long term insurance products enable its investors to fulfill their insurance requirements depending upon their risk appetite and investment objectives.

Since most of the ULIP investors lack in the knowledge about the insurance plan, however, they can easily rely on one of the most trusted brands of India, SBI, for providing safest ULIP products.

SBI Life ULIP Plans – Overview

State Bank of India is one of the trusted names in the banking and financial sector of India. Apart from banking, the company spread its wings in the insurance sector to offer insurance products in the year 2001. One of the most reliable insurance products of SBI Life Insurance Company is ULIP. An investor can opt for any of the seven ULIP plans offered by the SBI Life.

Plan NameMaximum Sum AssuredFund OptionsFree Switches
SBI Life –Smart EliteLimited Premium: 20 x AP

Single Premium: 5.00 x SP

2
SBI Life – Saral Maha Anand20 x AP32
SBI Life – Smart Wealth BuilderRegular Premium: 20xAP (For All Age Groups)

Limited Premium: 15xAP (For All Age Groups)

Single Premium: 3xSP (For Age Below 45 Years)

Single Premium: 1.25xSP (For Age 45 Years and Above)

 

72
SBI Life – Smart Power Insurance20 x AP22
SBI Life – Smart ScholarFor Limited Period: 20 x AP

For Single Pay: Age< 45 Years = 5 x SP

For Single Pay: Age>=45 = 1.25 x SP

72
SBI Life – eWealth Insurance10 x AP3
SBI Life – Smart Wealth AssureAge<45 Years = 5.00 x SP

Age > = 45 Years = 3 x SP

22

Note: In the above table AP = Annualized Premium and SP = Single Premium
Let now discuss these plans in greater details:

SBI Life – Smart Elite

It is a Unit Linked, non-participating insurance policy that is crafted for individuals who have High – Net worth. This plan allows one to maximize their savings by paying premium for limited or single term and keep protected for longer term. An insured has flexibility to select the best option as per their investment portfolio.

Key Highlights

Individual Plan

This is an investment plan that is available for High Net – worth individuals.

Flexible Plan

An ULIP that provides flexible premium payment and easy policy term is SBI Life – Smart Elite. An investor can opt the policy term from 5 years to 20 years.

Security

The plan provides financial security to the family of the investor.

Liquidity

An investor can opt for partial withdrawal from the sixth year of the policy.

Eligibility Details

 MinimumMaximum
Entry Age1860
Maturity Age65
Policy Term5 years to 20 years (both inclusive)
 Limited Premium AmountLimited/ Single Premium Amount (x 100)
Premium Amount MonthlyRs.12, 500No Limit
QuarterlyRs. 37, 000
Half-YearlyRs. 75, 000
YearlyRs.150, 000
Single Premium Amount
Rs. 200, 000
Sum AssuredFor LPPT:For LPPT: For People of All Ages = 20 x AP

 

For Less than 45 Years = 10 x Annual Premium (AP)
For 45 Years and Above = 7 x AP
For Single Premium (SP):For People of All Ages = 5 x SP
For Less than 45 Years = 1.25 x SP
For 45 Years and Above = 1.10 x SP
Premium Payment TermFor Limited Premium Payment Term (LPPT) – 5, 8, 10 years. 
For Single Premium there is only Single Payment
Premium Payment FrequencySingle, Monthly, Quarterly, Half-Yearly, Yearly

Key Features

SBI Life – Smart Elite is packed with various features. Some of the key features that this plan offers to its investors are:

  • The policy offers dual protection option – Platinum Option and Gold Option.
  • An investor is allowed to partially withdraw his/her money from the 6th year of the policy.
  • Offers accidental benefit cover.
  • Facility to switch and redirect the investment options is provided.
  • Single and limited premium payment option is provided.

Plan Benefits

After understanding the key features of SBI Life – Smart Elite, now let us know the benefits offered by this plan:

Death Benefits

The death benefits can be segregated as per the plans available under this ULIP:

  • For Platinum Option: Under this option, an amount equal to the fund value and sum assured is paid with the minimum of 105% of the total premium that is paid until the time of death.
  • For Gold Option: Sum assured or fund value whichever is higher is paid with a minimum of 105% of the total premium that is paid until the death of the policyholder.

Maturity Benefits

The fund value is paid upon completion of the policy term.

Tax Benefits

An investor of ULIP is eligible for income tax exemptions/benefits according to the laws of Income Tax in India, which change from time to time. For further details about this, one can visit the website of SBI Life ULIPs.

In-Built Benefits: The in-built benefits (riders) offered by SBI ULIP plans are:

  • Accidental death
  • Accidental total disability
  • Accidental permanent disability

SBI Life – SaralMahaAnand

This Unit Linked Insurance Plan of SBI offers dual benefits of investment and insurance. On one hand where a policyholder is able to invest his/her money in a financial instrument with high chances of growth, the other hand it is also coupled with the traditional benefits of the life insurance policy. With the availability of several rider options, this policy offers different options to enhance the cover. The flexible premium payment option and provision of maturity and death benefits are some other useful features of this plan.

Key Highlights

Security

The plan provides financial security to the family of the policyholder.

Simplicity

The joining process of this plan is simple and hassle-free.

Flexibility

The plan gives an opportunity to the policyholder to invest as per his/her investment appetite.

Liquidity

A policyholder can withdraw his/her invested amount partially from the sixth policy year.

Affordability

The plan provides market-linked returns even on the small investments.

Eligibility Details

 MinimumMaximum
Entry Age18 Years55 Years
Maturity Age65 Years
Policy Term (Years)10, 15, 20
Sum AssuredAge below 45 YearsAge more than 45 YearsAge below 45 YearsAge 45 more than 45 Years
10 x AP7 x AP20 x AP20 x AP
Premium Payment Term10, 15, and 20 Years
Premium Payment FrequencyMonthly, Quarterly, Half-Yearly, Yearly

Key Features

  • The plan provides insurance coverage for the family of the policyholder.
  • The ULIP also provides the accidental death benefit rider.
  • A policyholder gets three fund options for investment.
  • There is no premium allocation charge from the 11th policy year and the premium payments also become nominal after that.
  • A policyholder does not need to go for any medical examination.
  • The plan offers liquidity to opt for partial withdrawal from the sixth year of the policy.
  • Tax benefits are also given.

Plan Benefits

The plan offers the following benefits:

Maturity Benefits

Maturity benefits are offered on completion of policy term.

Rider Benefits

Accidental Death Benefit Rider of SBI Life (UIN: 111A019V02): The accidental death benefits are provided, if the policyholder dies in an accident.

Death Benefits

Sum assured or fund value whichever is higher is paid with minimum of 105% of the total premiums (basic) has been paid till the death of the policyholder.

Tax Benefits

An insured is eligible to avail the Tax exemption or benefits as per the law of Income Tax in India, which may change from time to time.

SBI Life – Smart Wealth Builder

As the name of this plan says, it is a wealth builder channel that provides the flexibility to manage and build wealth to the policyholder. An insured can invest in one or more investment funds to reap the benefits of savings in future.

Key Highlights

Flexibility

This plan offers policyholder a flexibility to invest money according to choice.

Security

A policyholder can secure his/her family financially against any misfortunate event.

Liquidity

One can avail the facility of partial withdrawal from the 6th year of the policy or 18th year of the age.

Reliability

An insured can get reliability through assured additions which can be availed periodically.

Eligibility Details

 MinimumMaximum
Entry Age7 yearsFor Limited & Regular Premium: 60 years
For Single Premium: 65 years
Maturity Age70 Years
Policy TermFor Single Premium – 5 Years to 30 Years
For Limited & Regular Premium Payment–10 Years, 15 Years to 30 Years (Both Inclusive)
Sum AssuredPremium ModeMinimumMaximum
 Age < 45 YearsAge > = 45 YearsAge < 45 YearsAge > = 45 Years
Single Premium1.25 x SP1.1 x SP3 x SP1.25 x SP
Limited PremiumHigher of [(10 x AP) or (0.50 x Term x AP)]Higher of [(7x AP) or (0.25 x Term x AP)]15 x AP15 x AP
Regular Premium20 x AP20 x AP
Premium Payment TermFor LPPT:5 or 8 years for a policy term of 10 years5, 8, or 10 years for a policy term of 15 to 30 years (both inclusive)
Single PremiumAt the time of policy inception onetime payment is done
Regular PremiumSame as policy term
 
Premium Payment FrequencySingle and Yearly

Key Features

  • Provides the facility of life cover.
  • One gets assured additions of up to 125% of the yearly regular premium paid for long term.
  • An insured always has option to decrease or increase the sum assured.
  • The premium payment frequency starts from 6th policy year.
  • Facility of partial withdrawal can be availed by the policyholder from the 6th policy year or from the 18th year of age.
  • A policyholder can enjoy the enhanced investment opportunity via seven varied fund options.

Plan Benefits

Maturity Benefit

The maturity benefits are offered only for the policies that are in-force:

  • The fund value is paid, only after the completion of the policy term.

Death Benefit

The death benefits are given only on the policies that are in-force:

  • Sum assured or fund value, whichever is higher is paid with at least of 105% of the total premium (basic) that is paid by the policyholder till his/her death.

Tax Benefits

An insured is eligible to get tax benefits as per the laws of the Income Tax Act. However, these laws change from time to time; it is suggested to keep a track of them.

SBI Life – Smart Power Insurance

The reasonable premium rate offered by this plan gives an opportunity to a policyholder to create wealth without any hassle. This plan not only fulfills the insurance requirements of the policyholder, but also allows one to meet his/her financial needs by providing option of liquidity. The two fund options provided in this plan, allows an insured to opt for sum assured as per his/her needs.

Key Highlights

Security

To provide financial security to the family of the policyholder in case of unfortunate event.

Flexibility

It gives flexibility to the policyholder to manage his/her invested money as per his/her choice.

Reliability

To meet the changing financial requirements of the policyholder.

Liquidity

A policyholder can partially withdraw his/her money from the 6th year of the policy.

Affordability

The affordable premium rates make it one of the most affordable ULIP plans of SBI.

Eligibility Details

 MinimumMaximum
Entry Age18 years45 years
Maturity Age65 years
Policy Term10, 15, 30 years (both inclusive)
Sum AssuredHigher of [(10 x AP) or (0.50 x Term x AP)]20 x AP
Note: The sum assured cannot be more than Rs.1 Crore in any case.
Premium Payment TermSame as policy term
Premium Payment FrequencyMonthly, quarterly, half-yearly, yearly

Key Features

  • The plan has inbuilt permanent and total disability feature to secure the financial future of the policyholder.
  • A policyholder can opt for partial withdrawals from the sixth year of the policy.
  • Gives choice to improve coverage.
  • The reasonable premium options allow an insured to get market-linked returns.
  • The policy provides two fund options to select from – Smart Funds and Trigger Fund, and 2 plan options –Increasing Cover Option and Level Cover Option.

Plan Benefits

Death Benefit

The death benefit in the form of sum assured or fund value, whichever is higher is paid with a minim of 105% of the basic premiums that the insured has paid till his/her death.

Maturity Benefit

The fund value is paid upon completion of the policy term.

Rider (In-built) Accelerated Total and Permanent Disability (TPD) Benefit

In case of Total and Permanent Disability of the insured due to sickness or accident, 100% death benefit is paid immediately and the policy terminates soon after that.

Tax Benefits

An insured is eligible to get the tax benefits as per the Income Tax Act of India. However, one should keep the track of the income tax laws as they keep changing from time to time.

SBI Life – Smart Scholar

A Unit Linked Plan that is designated to the children is SBI Life – Smart Scholar. This plan works to provide secure future to children even when the parents are not around to support. The returns and insurance coverage of this plan are linked to the capital market and thus a substantial corpus is accumulated for a child covered with this plan.  This plan is recommended for those who have children between the age group of 0 to 17 years.

Key Highlights

  • An insured can pay the premium for a limited tenure, in single lump-sum, and regular tenure.
  • Accidental Benefits and Premium Payor Waiver are the two inbuilt riders included in this plan.
  • The plan also provides the benefit of Loyalty Addition, which is added to the fund value.
  • There are seven fund investment options available to invest:
    • Top 300 Fund
    • Equity Fund
    • Equity Optimizer Fund
    • Balanced Fund
    • Growth Fund
    • Money Market Fund
    • Bond Fund

Eligibility Details

 MinimumMaximum
Entry AgeChild: 0 Years

Proposer: 18 Years

Child: 17 Years

Proposer: 57 Years

Maturity Age65 Years
Policy Term8 Years25 Years Less Entry Age of Child

The age of child should be between 18 years to 25 years at the time of maturity

Sum AssuredFor Single Premium:
MinimumMaximum
For all AgesFor Age< 45 YearsFor Age > = 45 Years
1.25 x SP5 x SP1.25 x SP
For Other PPTs
MinimumMaximum
 For Age < 45 YearsFor Age > = 45 YearsFor all Ages
 Higher of 10 x AP or ½ T x AP7 x AP20 x AP
Premium Payment TermSingle Premium

5 Years to 25 Years (Depends upon the limits of the terms of the policy)

Premium Payment FrequencySingle, Monthly, Quarterly, Half-Yearly, Yearly

Key Features

  • The lump sum amount is given on maturity.
  • Provision of partial withdrawal from the sixth policy year.
  • Option to waive premiums at the situation of eventuality.
  • Provides seven fund options.
  • As per the terms of the policy, regular loyalties are added in the in-force policies upon completion of specific duration.

Plan Benefits

Maturity Benefits

The fund value is paid on completion of the policy term.

Death Benefits

The death benefits provided by this plan are:

  • In the situation of unfortunate death of the policyholder, a lump sum amount equal to higher of the 105% of all the premiums paid till the death of the policyholder and sum assured is paid.
  • SBI Life pays the future premiums of the policyholder on his/her behalf (Premium Payor Waiver Benefits) and the fund value accumulated is paid at the time of maturity.
  • The Single premium policy does not cover the accidental benefits and premium payor waiver benefits.
  • In case of the unfortunate total and permanent disability of the policyholder or his/her accidental death, the plan pays:
  • The accidental benefit equal to the sum assured.

Tax Benefits

The insured gets tax exemption according to the Income Tax Act of India.

SBI Life – eWealth Insurance

A ULP plan that can be purchased online through three simple steps and helps a policyholder to grow his/her wealth is SBI Life – eWealth Insurance. An insured can avail the dual benefits of market linked returns and life insurance cover on his/her invested money without much effort.

Key Highlights

  • It is one of those Unit Linked Insurance Plans that does not participate in bonuses.
  • One can purchase this plan online in just three steps.
  • The plan does not have any premium allocation charges.
  • The Automatic Asset Allocation feature of the plan maximizes the returns by managing the investments automatically.
  • There are two options provided in this plan –Growth and Balanced to suit various risk profiles of the insured.

Eligibility Details

 MinimumMaximum
Entry Age18 years50 years
Maturity Age60 years
Policy Term10 years to 30 years
Sum Assured (Sum Assured Multiple Factor)0.5 or 10 x Policy Term (whichever is higher)
Premium Payment TermSame as the Policy Term
Premium Payment FrequencyMonthly and Yearly

Key Features

  • Life coverage.
  • Two plan options are provided in this ULIP –Growth and Balanced.
  • Management of investment is provided through Automatic Asset Allocation feature of the policy.
  • Three steps online policy purchasing process.
  • An insured can withdraw his/her invested amount partially from the 6th policy year.
  • Affordable premium payments without allocation charges.
  • An insured can choose an investment option as per his/her risk appetite.

Plan Benefits

Maturity Benefit

The maturity benefit is provided only for in-force policies. The fund value is given on completion of the policy term.

Death Benefit

As death benefit either the fund value or 105% of the total premium amount paid until the death of the policyholder or the sum assured is paid to the beneficiary. The sum assured is reduced, if the partial withdrawals are made in last two years soon after the death of the policyholder.

Tax Benefits

The tax benefits are given according to the Income Tax Act, however they change time to time so it is suggested to check the tax rules.

SBI Life – Smart Wealth Assure

A Unit Linked Insurance Plan of SBI that offers dual benefits of market-linked returns and insurance coverage in only single premium is Smart Wealth Assure. One feature that makes it different than other ULIP plans of SBI is – it can be purchased at a very young age. An individual can purchase it at the age of 8 years. One can take this plan for 30 years and there is no restriction on the payment of the premium amount.

Key Highlights

  • A unit linked plan with single payment option.
  • Accidental death benefit add-on is offered to provide additional benefits.
  • The below mentioned two fund options are available for investment:
    • Bond Fund
    • Equity Fund

Eligibility Details

 MinimumMaximum
Entry Age8 years65 years
Maturity Age75 years
Policy Term10 years to 30 years (Both Inclusive)
Sum AssuredFor Age < 45 Years: 1.25 x SPFor Age < 45 Years: 5 x SP
For Age > = 45 Years: 1.10 x SPFor Age > = 45 Years: 3 x SP
Premium Payment TermSingle Premium
Premium Payment Frequency

Key Features

  • With insurance cover, this plan offers market-linked returns.
  • Single premium payment facility.
  • Provide an option to select funds from Equity Fund and Bond Fund.
  • The plan provides liquidity in the form of partial withdrawals.
  • The plan offers the feature of customization as it offers option of Accidental Death Benefits to the policyholder.

Plan Benefits

Maturity Benefit

Fund value is paid upon completion of the policy term.

Accidental Death Benefit

The plan provides the feature of accidental death benefit, if the death of the insured occurs because of an accident.

Death Benefit

The sum assured or the fund value whichever is higher is paid with at least 105% of the single premium that is paid by the policyholder.

Tax Benefits

The premium paid to avail the benefits of this plan also avail the tax benefits. An insured can get the tax benefits as per the laws of the income tax act of India. However, the income tax laws change time to time so it is the responsibility of the insured to check them.

Things to Know Before Buying SBI Life ULIP Plans

One of the best combinations of insurance and investment is ULIP. ULIP or Unite Linked Insurance Plan offers an insured the facility to protect as well as build a good corpus through a single plan. However, every market fund has some or the other risk factors, so before purchasing one, an individual should do a thorough research about it. Below mentioned are a few points that one must know before purchasing a ULIP plan of SBI:

Understanding the Risk Appetite

Same as mutual funds, ULIPs are also subject to the market risks and the entire risk has to be monitored and faced by the policyholder. Therefore, it is recommended to analyze the risk appetite before investing in ULIP. Therefore, one has to select between conservative and aggressive funding options. The money of the investor is invested in equities that are volatile, but have high returns in case of aggressive funding option. On the other hand, with conservative option, the money is majorly invested in the debts that have lower chances of risk, but provide stable returns. However, there is third option of investment as well, wherein the money is divided equally between debts and equity.

Facility to Switch

The strategy of market changes with time and if after sometime one realizes the requirement to switch from one fund of investment to another, he/she can do that easily with ULIP. Since, one selects the funding option as per his/her risk appetite at the beginning, but with time if one wants to switch from one find to other in order to get the highest benefits, he/she can do that easily with SBI ULIP plans. Every ULIP plan os SBI provides different number of free switches.

Select Premium Payment Option Strategically

ULIPs of SBI provide three premium payment options – Regular Premium Payment, Single Premium Payment, and Limited Premium Payment. In regular premium payment option, an insured has to pay the premiums regularly throughout the term of the policy. On the other hand, in single premium, the insured has to pay the complete premium at once. In limited premium option, one has to select the number of years in which one will be able to pay the premium. So, an individual should select a plan as per his/her premium payment requirement.

Terms and Conditions

Every ULIP plan has different terms and conditions. So, before finalizing a plan, it is suggested to go through its terms and conditions carefully.

Documents Required to Buy SBI Life ULIP Plans

The below mentioned documents are needed to buy SBI Life ULIP plans:

  • Identity Proof: Passport, driving license, voter id, or aadhaar card can work as an identity proof.
  • Residential Proof: The following documents can be considered as residential proof:
    • Any utility bill that is not more than two months old.
    • Letter of accommodation or allotment given by the employer.
    • Bank account statement or post office account statement.
    • A letter issued by the Mission in India or foreign embassy.
  • The documents that are needed at the time of partial withdrawal:
    • Documents of the policy
    • ID proof
    • A cancelled cheque of the policyholder
    • Payout form
    • Current bank statement of NRE account to prove the premiums are paid.

FAQs

Question 1: How can I check the status of my SBI Life ULIP plan?

Answer: To check the status of your ULIP plan online, you need to login to the e-portal of SBI Life ULIP. There, you need to provide your customer ID, policy number, and date of birth. As soon as you provide these details, you will see the details of your policy along with its status on the following screen.

Question2: What is the claim settlement process of SBI Life – ULIP plans?

Answer: The process to settle claim of SBI Life – ULIP plans is very easy and requires one to contact the nearest branch. There one has to submit the list of documents mentioned on the website. After successful verification of the documents, the claim is settled without delay. For more help and clarification, one can write to claims@sbilife.co.in

Question 3: How can I renew my SBI ULIP plan?

Answer: One can perform renewal of SBI Life – ULIP plans through any of the following modes:

  • Through SMS
  • Online
  • Going to the nearest branch of SBI

For online renewal, one has to login to the e-portal of SBI and then click ‘Renew Policy’ tab for processing the premium payment. Alternatively, for renewal one can also utilize the kiosk in the ATM of SBI by following its renewal process.

Question 4: Explain SBI Life-ULIP plans cancellation process

Answer: For cancellation of the policy, the policyholder needs to submit the duly filled surrender form with the relevant documents to any of the branches of SBI. Once the request for cancellation of the policy is received and after verifying all the documents, the policy is cancelled as per the records of the bank account. The refund of the premium is calculated on NAV value as per the current rate of the market.

Question 5: How can one pay the premium of SBI Life – ULIP plans and what are the available rates of premium?

Answer: A policyholder can pay the premium of his/her SBI Life – ULIP plan through any of the below 10 modes:

  • Electronic Clearance Service (ECS) – mandatory
  • Direct remittance at any of the branch of SBI either by courier or by post.
  • Through credit card
  • Through direct debit
  • The online payment options available are:
    • Via ATMs of the State Bank Group
    • Paying through Visa Bill Pay.Com
    • Through the website of SBI Life under online payment option
  • Payment via the terminals of Point of Sales (POS), which is available at the selected branches of SBI.
  • Si-Eft for the account holders of State Bank and its associated banks
  • Payment via mobile app
  • Paying premium by cash at the authorized collection centers of SBI
  • Through Nach (National Automatic Clearing House)

Note: Nach is one of the newly services launched which works same as ECS, wherein form filling and getting registration is required before availing this facility.

 

 

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