In this fast-growing world, where everything is expensive, it is important that every individual is financially protected. Being financially protected not just means that you have a comprehensive insurance plan. It always means that you have guaranteed income through your investments. Many people are skeptical to buy an insurance policy as they are not sure if the premium they pay is worth it. What if we told you that you can now earn some money by buying an insurance policy? Yes. SBI Life Insurance has introduced the SBI Life Flexi Smart Plus Plan which gives you both protection and investment options under the same plan.
This individual, participating, and variable insurance product can help you fulfill your dreams at different stages of life. With attractive features like guaranteed minimum bonus and two protection options to choose from, this is one of the most sought-after insurance plans in India.
To be eligible to purchase the SBI Life Flexi Smart Plus Plan, individuals will have to meet the below mentioned eligibility criteria:
|Plan Type||Individual, participating, variable insurance plan|
|Minimum Entry Age||18 years|
|Maximum Entry Age||60 years|
|Minimum Age at Maturity||23 years|
|Maximum Age at Maturity||65 years|
|Policy Term||5 years to 30 years|
While purchasing the SBI Life Flexi Smart Plus Plan, the policyholder will be given an option to select the sum assured amount. For more information on the sum assured and the premium range under the SBI Life Flexi Smart Plus Plan, read on.
|Minimum Sum Assured||Higher of annualised premium*10/7 (age below 45/age above 45) or annualised premium * 0.50/ 0.25 (age below 45/age above 45)* policy term|
|Maximum sum assured||Annualised premium*20|
|Premium Payment Term||5 to 30 years|
|Premium Payment Frequency||Yearly, Half-yearly, Quarterly, and Monthly|
|Minimum Premium Amount||Yearly- Rs.50,000 Half-yearly- Rs.30,000 Quarterly- Rs.20,000 Monthly- Rs.9,000|
|Maximum Premium Amount||No limit|
SBI Life Flexi Smart Plus Plan offers types of coverage, namely gold option and platinum option. The benefits that a policyholder is eligible to receive depends on the type of plan they choose at the time of inception of the policy. Some of the benefits under the SBI Life Flexi Smart Plus Plan are:
|Guaranteed Minimum Bonus||Under the SBI Life Flexi Smart Plus Plan, policyholders will get an interest rate of 10% p.a on the balance of the policy account every day on a pro-rata basis. The accrued interest will be credited to the balance under the policy at the end of every financial year. This will form a part of the principal at the beginning of the year.|
|Non-zero Positive Regular Bonus||Apart from the guaranteed minimum bonus, policyholders will also get a non-zero positive regular bonus which will be declared at the end of each financial year. The non-zero positive regular bonus will be based on the surplus arising upon the statutory valuation of assets and liabilities. This regular bonus will be accumulated in the policy balance amount every day and will be credited at the end of every financial year.|
|Interim Bonus||An interim bonus will be given to the policies that are exiting in a financial year. It will be declared at the beginning of the year. The bonus interim interest rate will not be less than the interim bonus interest rate.|
|Guaranteed Death Benefit||In the event of death of the policyholder, guaranteed death benefit is given. If the policy is in force in case of unfortunate event of death of the life insured the benefits payable will be: For gold option: The death benefit payable will be higher of the policy account value or sum assured multiplied by 105% of the total premiums paid as on the date of intimation of the death claim. For platinum option: The death benefit payable will be higher of the policy account value plus sum assured or 105% of the total premiums paid as on the date of intimation of death claim. If the policy is discontinued after completing 5th policy year and the death occurs after the policyholder requested to revive the policy, the death benefit payable will be same as above for policies that are in-force. If the policy is discontinued after completing 5th policy year and the death occurs after the policyholder requested to convert the policy to paid-up policy, the death benefits payable will be: For gold option: Higher of policy account value as on the date of intimation of the claim or paid-up sum assured as applicable minus any partial withdrawals made in the last 2 years immediately preceding the death of the life insured. For platinum option: The death benefit payable will be paid-up sum assured plus policy account value as on the date of intimation of the claim to the company.|
|Maturity Benefit||The SBI Life Flexi Smart Plus Plan also offers maturity benefit. Upon maturity, the policyholder is entitled to receive the policy account value including terminal bonus, if any. Please note that the maturity benefit will be paid in lump-sum.|
|Surrender Benefit||Under the SBI Life Flexi Smart Plus Plan, policyholders will have an option to surrender their policy. Policyholders can surrender their policy at any time during the policy term. However, if the policy is surrendered during the first 5 policy years, lock-in conditions are applicable, life cover will cease, and fund management charge of discontinued policy account shall be deducted. If the policy is surrendered after completing 5 policy years, the policy account value will be payable immediately.|
Following are some of the other key features of the SBI Life Flexi Smart Plus Plan:
|Partial Withdrawals||Policyholders will be allowed to make partial withdrawals from the 6th policy year onwards. One free partial withdrawal can be made in one policy year. More than one partial withdrawal will attract a fee of Rs.100. Please note that only 3 partial withdrawals can be made in one policy year and not more than 10 partial withdrawals can be made in the entire policy term. Also, the minimum partial withdrawal amount is Rs.2,000 and the maximum partial withdrawal amount cannot be more than the sum of all accrued bonuses at the time of withdrawal|
|Change the Sum Assured||Unlike many other insurance policies, where a policyholder cannot change the sum assured amount, policyholder under the SBI Life Flexi Smart Plus Plan can change the sum assured amount. This option is available at each policy anniversary from the 6th policy year. The policyholder should give 2 months prior notice and make sure that the policy in in-force to request to increase or decrease the sum assured. Increase the sum assured The policyholder can increase the sum assured by changing the sum assured multiplier factor(SAMF). By increasing the SAMF, the sum assured will increase but the regular premium will remain the same. However, this option is available only after the life assured has attained the age of 50 years as on the last birthday. Decrease the sum assured If the policyholder wants to decrease the sum assured, they can decrease the SAMF. Please note that decreasing the SAMF will not have any effect on the regular premium, it will remain the same. Also, SAMF once decreased cannot be increased in the future.|
|Increase Policy term||At each policy anniversary starting from the 6th policy year, the policyholder will get an option to increase the policy term. When a policyholder increases the policy term, the corresponding premium payment term will also increase. Please note that this option can be availed only once during the entire policy term.|
Some of the charges under this plan are:
|Grace Period||The SBI Life Flexi Smart Plus Plan has a grace period of 30 days from the due date for payment of premiums if the payment is made in yearly, half-yearly, or quarterly modes. In case the premiums are paid in monthly mode, the grace period is 15 days.|
|Revival / Renewal||A lapsed policy can be reinstated for full benefits by reviving it within two years from the date of the first unpaid premium. The insured has to pay the total outstanding premiums with interest to reinstate the policy.|
|Free Look Period||The SBI Life Flexi Smart Plus Plan has a free look period of 15 days within which the policyholder can cancel the policy and get the premiums paid refunded. For policies purchased through distance marketing, the free look period is 30 days from the receipt of the policy document.|
There is one exclusion under the SBI Life Flexi Smart Plus Plan which is the suicide exclusion.
Suicide exclusion: Under this policy, If the life insured commits suicide within one year from the date of issue or revival of the insurance policy, the policy shall be void. In such event, the policy account value will be payable on the policy as on intimation of death to the company.
Policyholders who have purchased the SBI Life Flexi Smart Plus Plan will enjoy tax benefits under Section 80C of the Income Tax Act, 1961. However, if the premium paid during the financial year exceeds 10% of sum assured, the benefit will be limited up to 10% of the sum assured. Policyholders also enjoy tax exemption under Section 10(10)D, if the premium paid does not exceed 10% of the sum assured during the policy term.
SBI Life Insurance is one of the leading insurance companies in India. The brand has gained excellent reputation over the past few years. It is also the largest state-owned banking and financial services company in the country. Choosing a well-established insurance provider is very important. So, if you are planning on buying a protection cover with investment option, the SBI Life Flexi Smart Plus Plan is the perfect choice for you. Whether you are looking for unit linked plans or retirement plans, SBI Life Insurance offers it all. SBI Life Insurance offers a wide range of insurance plans, visit their official website to find insurance products that will suit your requirements.