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SBI Life - Smart Elite Plan

The Smart Elite Plan from SBI Life is designed to provide insurance solutions to those who are looking to get the most out of their investment. A unit linked scheme, it is mainly targeted towards high net-worth individuals. An individual can customise this plan based on his/her needs, with SBI Life offering options to choose the policy term, the premium amount, premium payment term, etc. There are two protection plan options available under this scheme, Gold Option and Platinum Option. The policy provides market linked returns, thereby helping an initial investment grow over time.

Eligibility – Who is the SBI Smart Elite Plan for?

Individuals who wish to buy the SBI Life Smart Elite Plan need to satisfy a few basic eligibility criteria, as highlighted below:

Parameters Criteria for eligibility
Minimum age at entry 18 years
Maximum age at entry 60 years
Maximum age at maturity 65 years
Protection plan options to choose from
  • Gold Option
  • Platinum Option
Plan types
  • Single Premium
  • Limited Premium

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

Sum Assured – This is the amount the insurer pays the nominee if the policyholder passes away while the policy is in force. The sum assured in this plan depends on the premium mode chosen by an individual. It ranges from 1.10 times the single premium to 20 times the annualised premium, as highlighted in the table below:

Minimum Sum Assured (Rs.)
Age Limited Premium Mode Single Premium Mode
Less than 45 years 10 times the annualised premium 1.25 times the single premium
More than 45 years 7 times the annualised premium 1.10 times the single premium
Maximum Sum Assured (Rs.)
Limited Premium Mode Single Premium Mode
20 times the annualised premium 5 times the single premium

Premium*– This is the amount a policyholder pays towards maintaining the policy. The premium determines the sum assured one can get, with this amount varying based on the age of policyholder, plan term, etc. The Smart Elite Plan from SBI Life comes with a policy term ranging from 5 to 20 years, with the premium varying based on this. The frequency of premium payment also results in different premium requirements, as highlighted in the table below:

Minimum term of the policy 5 years
Maximum term of the policy 20 years
Premium Payment Term
  • 5 years
  • 8 years
  • 10 years
  • Single premium
Premium Payment Frequency
  • Single
  • Monthly
  • Quarterly
  • Half-yearly
  • Yearly
Minimum Single Premium Amount Rs.2 lakh
Maximum Single Premium Amount No upper limit
Minimum Monthly Premium Amount Rs.12,500
Maximum Monthly Premium Amount No upper limit
Minimum Quarterly Premium Amount Rs.37,500
Maximum Quarterly Premium Amount No upper limit
Minimum Half-yearly Premium Amount Rs.75,000
Maximum Half-yearly Premium Amount No upper limit
Minimum Yearly Premium Amount Rs.1.5 lakh
Maximum Yearly Premium Amount No upper limit

*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 Elite Plan covers?

SBI Life’s Smart Elite Plan can be customised according to the needs of an individual, with some of the key features of this plan mentioned below:

  • One can choose between two options, Gold and Platinum, based on the cover he/she needs.
  • One can choose the premium payment term to match their current financial condition. This in turn has a bearing on the premium amount paid, and the sum assured one is entitled to.
  • The sum assured can be modified after the sixth policy year to meet future requirements.

The table below highlights the different benefits provided by this plan:

Death Benefit The nominee of a policyholder will be paid a death benefit if the policyholder passes away while the plan is in force. The death benefit varies based on the protection option chosen by the policyholder.
  • Gold Option –If the policyholder had chosen this option, his/her nominee will receive an amount which is the highest of the sum assured, fund value or 105% of all premiums paid until time of death.
  • Platinum Option – In this case, the nominee will be paid the sum assured plus the fund value at time of death. The minimum amount one is eligible for under the Platinum Option is 105% of all premiums paid.
Maturity Benefit The policyholder will be paid a maturity benefit equivalent to the fund value on survival till the policy term. One can choose to receive this amount either in the form of a single lumpsum payment or in instalments. One can choose the frequency of receiving these instalments, with SBI Life providing the option of receiving these yearly, monthly, quarterly, or half-yearly.
In-built Accident Benefit Under the Accident Benefit, an additional amount is paid if the policyholder meets with an accident which leads to death or total and permanent disability. The amount payable is equivalent to the sum assured.
Partial Withdrawals Partial withdrawals are permitted from the sixth policy year, with one free withdrawal allowed each year. The number of partial withdrawals are limited to two in a year, with a maximum of five permitted during the entire policy.
Fund Options There are five fund options to choose from, with a varied risk profile on offer.

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

There are no riders currently offered with this plan.

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

There are certain exclusions in this plan, as highlighted below:

  • Suicide – The policy becomes void if the policyholder commits suicide within a year of purchasing/renewing the policy. The mental state of the policyholder does not play a role in this case, with it applicable even if it happens in an insane frame of mind. The insurer will pay the fund value on the date of death, with no further benefits payable.
  • In-built Accident Benefit exclusions – There are a number of exclusions to this benefit, as listed below:
    • Any accident occurring out of criminal activity or the intention to perform a criminal activity.
    • Death/disability due to an infection. This does not include any infection caused by an accident.
    • Any incident occurring due to usage of drugs/alcohol.
    • Any accident arising out of intentional injury to self.
    • Any accident due to nuclear contamination, war, riots, etc.
    • An aviation accident, unless a policyholder is flying in a commercial airline.
    • Any accident which occurs due to participation in dangerous sports.

Other Key Features of SBI Life Smart Elite Plan:

Some of the other features of this plan are highlighted in the table below:

Grace period
  • 30 days if the premium payment frequency is quarterly, yearly, or half-yearly.
  • 15 days for monthly premium payments.
Free look period
  • 30 days if policy was purchased via distance marketing.
  • 15 days for all other policies.
Revival A lapsed policy can be revived within two years of first missed premium, subject to the terms and conditions in place.
Surrender A policyholder can surrender the policy, with a surrender value being paid depending on the time of surrender.

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

The Smart Elite Plan from SBI Life not only offers life cover, it also helps one save money on taxes. Listed below are the tax benefits one can avail by purchasing this plan:

  • The premiums paid by a policyholder are eligible for tax deductions under Section 80C of the Income Tax Act. This benefit depends on the sum assured chosen. If the premiums paid in a financial year are greater than 10% of the sum assured, the maximum tax benefit available is limited to 10% of the sum assured.
  • There are no taxes levied on the death benefit a nominee receives.
  • A policyholder can claim tax benefits on the maturity benefit. This can be done under Section 10(10D) of the Income Tax Act.

Note: The deductions available depend on existing tax laws in the country and could change with changes in these laws.

Why you should buy the SBI Life Smart Elite Plan?

SBI Life Insurance is among the top 10 insurers in India (based on premiums collected), offering a host of plans to individuals. One can customise these plans based on their personal needs, ensuring that they meet certain goals. The Smart Elite Plan is designed for those looking to secure their future, ensuring that their lifestyle is not hampered. This plan gives market linked returns at reasonable costs. In addition to these, SBI Life has a high claim settlement ratio of 93.39% (as of 2015-2016), highlighting its commitment to customers.