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.
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 – 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||
|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.
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.
The policy pays Smart Benefits after the child attains the age of 18 years. These benefits are paid for four years, as shown below:
|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.|
The SBI Life Smart Champ Insurance Plan does not offer any rider.
The following are the exclusions under this plan:
|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.|
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.
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.