SBI Life - Smart Champ Insurance Plan

• Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
• Claim up to Rs. 1,50,000 deduction under section 80C**
• Choose between annual and monthly premium payment options

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:

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:

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.

*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.

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:

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.