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SBI Life - Smart Champ Insurance Plan

Every parent tries to provide the best for their children, even if it means sacrificing things themselves. With cost of education going up in India, it is imperative that one start saving in order to meet rising costs. Seeing our children fulfil their dreams offers unparalleled joy, but all these dreams could remain dreams if something unfortunate happened to the parent. This is why it is important to invest in an insurance plan which secures the future of our loved ones. SBI Life’s Smart Champ Insurance Policy is a non-linked life insurance scheme which is aimed at providing a financial cushion to meet any needs a child could have. This policy offers assured benefits, with the policyholder protected under a life cover, ensuring that lack of finances do not hamper the dreams of his/her children.

Eligibility – Who is the SBI Life Smart Champ Insurance Plan for?

An individual who wishes to secure the future of his/her child through the SBI Life Smart Champ Insurance Plan is expected to satisfy a few basic criteria, as listed below:

Parameters Criteria for eligibility
Minimum age at entry Life assured: 21 years Child: 0 years
Maximum age at entry Life assured: 50 years Child: 13 years
Maximum age at maturity Life assured: 70 years Child: 21 years

Sum Assured and Premium Range – What you get and what it costs?

Sum Assured – Each insurance policy offers a certain amount which will be paid as cover to the policyholder/nominee (depending on situation). This cover is the sum assured and is the minimum amount guaranteed under the scheme. A policyholder can choose to increase/decrease this amount based on personal requirements. Certain policies also offer this on completion of the term. The Smart Champ Life Insurance Plan offers cover based on the future requirements of an individual, with the minimum and maximum amount highlighted below:

Minimum Sum Assured Rs.1 lakh
Maximum Sum Assured Rs.1 crore

Premium* - Each policyholder is expected to pay a certain amount towards maintaining a policy, with this amount deciding the sum assured. This is termed the premium, with it mandatory to pay this in order for the policy to be active. A policyholder can choose the mode of premium payment, the premium frequency, etc., with the premium varying based on these factors.

Term of the policy (years) 21 minus entry age of child Eg: if entry age of child is 5 years, the policy term will be 21-5 = 16 years
Premium Payment Mode
  • Single premium
  • Yearly
  • Half-yearly
  • Monthly
  • Quarterly
Minimum Single Premium Amount Rs.66,000
Maximum Single Premium Amount Based on sum assured
Minimum Monthly Premium Amount Rs.500
Maximum Monthly Premium Amount Based on sum assured
Minimum Quarterly Premium Amount Rs.1,500
Maximum Quarterly Premium Amount Based on sum assured
Minimum Half-yearly Premium Amount Rs.3,000
Maximum Half-yearly Premium Amount Based on sum assured
Minimum Yearly Premium Amount Rs.6,000
Maximum Yearly Premium Amount Based on sum assured

*Premiums can vary depending on factors like the age of policyholder, location of individual, policy term, etc. Applicants should check the same with the insurance provider before purchasing a plan.

Plan Coverage – What the SBI Life Smart Champ Insurance Plan covers?

The Smart Champ Insurance Plan from SBI is designed to offer multiple layers of protection to individuals, ensuring that an unforeseen event does not derail the future of their children. The table below highlights the types of protection one is eligible to receive under this plan.

Death Benefit/Accidental Total and Permanent Total Disability Benefit If the policyholder passes away (or meets with an accident which results in total and permanent disability) while the policy is active, his/her nominee will be paid an amount depending on the policy chosen.
  • In case of a single premium policy, the nominee will receive the sum assured, which is the higher of the base sum assured or the single premium multiplied by a factor based on the age. This multiplication factor is shown below:
    Entry age less than 45 years 1.25 times premium
    Entry age more than 45 years 1.10 times premium
  • In case of limited premium payment term, the nominee will receive a sum assured which is the highest of 105% the premiums paid, the base sum assured, or the annualised premium multiplied by a factor based on the policy term and entry age of policyholder. This multiplication factor is show below:
Policy term Entry age less than 45 years Entry age more than 45 years
8/9 years 5 5
10 years and more 10 7
In addition to this benefit, all future premiums are waived off. SBI Life will also pay the terminal bonus (if applicable), with the Smart Benefits paid in instalments.
Survival Benefit The policy pays Smart Benefits after the child attains the age of 18 years. These benefits are paid for four years, as shown below:
Child’s age Smart Benefits
18 years 25% of the sum assured is paid in addition to 25% of the vested simple reversionary bonus
19 years 25% of the sum assured is paid in addition to 25% of the vested simple reversionary bonus
20 years 25% of the sum assured is paid in addition to 25% of the vested simple reversionary bonus
21 years In addition to 25% of the sum assured and 25% of the vested reversionary bonus, SBI Life will also pay an additional terminal bonus (if applicable) when the child completes 21 years of age
Surrender Benefit Surrender benefit is payable if a policy has been in force for a minimum of 2 years for PPT less than 10 years, or 3 years for PPT greater than 10 years. This amount is the higher of the Guaranteed Surrender Value or the Non-Guaranteed Special Surrender Value, and depends on the duration for which a policy is active and the premiums paid.

Riders/Add-on plans – Additional coverage under the SBI Life Smart Champ Insurance Plan:

The SBI Life Smart Champ Insurance Plan does not offer any rider.

Exclusions – What the SBI Life Smart Champ Insurance Plan does not cover?

The following are the exclusions under this plan:

  • Suicide – There will be no benefit paid if the policyholder commits suicide within a year of purchasing the policy. In case a policy is active and in-force, SBI Life will pay 80% of premiums paid if the policyholder commits suicide. This is applicable even if the policyholder commits suicide in an insane frame of mind. In case of limited premium payment term policies, SBI Life will pay the surrender value or 80% of all premiums paid if the policyholder commits suicide within a year of reviving/reinstating the policy.
  • Accidental Total and Permanent Disability – The following are the exclusions in case of the accidental total and permanent disability benefit:
    • If disability occurs due to an infection which is not the result of an accident.
    • If disability occurs due to drug/alcohol abuse.
    • Any injury which is intentional.
    • Any injury/disability occurring out of an intention to commit criminal activities/participation in criminal activities.
    • Any disability which occurs due to participation in war, riots, rebellions, etc.
    • If disability is due to nuclear contamination.
    • If disability is due to participation in dangerous sports/adventure activities.
    • If disability is due to an aviation incident (except when an individual is a passenger on a licensed aircraft).

Other Key Features of SBI Life Smart Champ Insurance Plan:

Grace period
  • 30 days if the premium is paid quarterly, yearly, or half-yearly.
  • 15 days if the premium is paid every month.
Free look period
  • Policies purchased through distance marketing can be returned within 30 days of purchase date.
  • Policies purchased through other modes have a 15 day free look period.
Revival A policyholder can revive a lapsed policy by paying all dues within two years of first missed payment. Revival is subject to certain terms and conditions, and is at the discretion of the company.
Loan A policyholder can avail loan facility, provided the policy has attained the surrender value. The maximum loan quantum is equivalent to 90% of the surrender value.
Rebates Rebates are offered on high sum assured.

Tax Benefits – How you can save with the SBI Life Smart Champ Insurance Plan?

The premiums paid by a policyholder are eligible for tax savings under Section 80C of the Income Tax Act. One can also avail tax benefits under Section 10(10D) of the same act if he/she surrenders the policy/when he/she receives a maturity benefit. These benefits are subject to the current Income Tax Rules and are subject to change.

Why you should buy the SBI Life Smart Champ Insurance Plan?

In this current day and age, it is important to plan our future, for life can be unpredictable. This plan is a must for individuals who are keen to protect their children, ensuring that their dreams are not compromised due to an unforeseen event. Not only does this plan provide benefits to ensure the future of the child is not compromised, it also earns bonuses, helping an investment keep pace with inflation. The policy is easy to purchase and maintain, with it possible to customise it according to individual needs. In addition, SBI Life Insurance is one of the biggest private insurers in the country, having a high claim settlement ratio of 93.39% (as of 2015-2016), highlighting its dedication to honour commitments.