SBI Life – Smart Money Planner is an individual, participating, non-linked, profit endowment assurance plan offered by SBI Life Insurance Company. It is a savings plan with ‘growth period’ feature that offer regular income throughout the benefit period. It helps people in achieving their long and short term goals by providing them with life cover throughout the policy term, premium payment period and growth period. Apart from death benefit, the plan also provides survival and maturity benefits to the customers. Policyholders get 4 plan options and they can choose between Single Premium and Limited Premium Payment modes. They can also avail tax benefits under the Income Tax Act, 1961.
Policyholders of SBI Life – Smart Money Planner has to fulfil the following eligibility requirements to avail the policy:
|Plan Type||Individual, participating, non-linked, profit endowment assurance plan|
|Minimum Age at Entry||18 years for all the 4 plans|
|Maximum Age at Entry||Plan 1 – 60 years Plan 2 – 55 years Plan 3 – 55 years Plan 4 – 50 years|
|Maximum Age at Maturity||75 years|
The guaranteed benefit that the policy offers to every policyholder is called the Sum Assured. The minimum and maximum Sum Assured offered by SBI Life – Smart Money Planner is mentioned in the table below:
|Maximum Sum Assured||Rs.5 crore|
|Minimum Sum Assured||Rs.1 lakh|
|Benefit Payment Period||Plan 1 – 5 years Plan 2 – 10 years Plan 3 – 5 years Plan 4 – 10 years|
Premium on the other hand is the amount paid by the policyholders to avail the policy. The minimum and maximum premium is decided by the company based on the age, gender, plan term, location and other factors.
|Premium Payment Period||Plan 1 – 6 years Plan 2 – 6 years Plan 3 – 10 years Plan 4 – 10 years|
|Growth Period||Plan 1 – 4 years Plan 2 – 4 years Plan 3 – 5 years Plan 4 – 5 years|
|Premium Payment Mode||Single Premium Yearly Half Yearly Quarterly Monthly|
|Policy Term||Plan 1 – 15 years Plan 2 – 20 years Plan 3 – 20 years Plan 4 – 25 years|
|Premium Frequency Loading||Monthly – 8.5% of annual premium Quarterly – 26% of annual premium Half-yearly – 51% of annual premium|
SBI Life – Smart Money Planner is a participating life insurance plan, which is why policyholders will receive a profit share in the form of Terminal Bonus and Regular Simple Reversionary Bonus. The latter is guaranteed by the company and is announced at the end of every financial year. Terminal Bonus may be paid depending on the case. To avail the profits, policyholders have to pay their premiums on time.
SBI Life – Smart Money Planner covers the following:
If the policy is active on the date of death, the company will pay the following as death benefit:
|Maturity Benefit||If the policy is active and the life insured is alive at the end of the policy term, then the company will pay the Guaranteed Sum Assured on maturity. It will also pay the Terminal Bonus (if any) and the Vested Simple Reversionary Bonus. If the life insured is alive by the end of policy term and the policy is not in-force, but has got paid-up value, then the company will pay the paid-up value on maturity. It is equal to the Vested Simple Reversionary Bonuses + Terminal Bonus (if any) + paid-up sum assured on maturity.|
|Survival Benefit||If the life insured is alive, then the company will pay the survival benefit in instalments at the end of every policy year. The first benefit instalment will be paid a year after the growth period ends. If the policy is active, then the survival benefit will be a fixed percentage of the Basic Sum Assured. If the policy has acquired paid-up status, then the percentage will be applicable on the paid-up Sum Assured.|
SBI Life – Smart Money Planner does not offer any riders.
Suicide Exclusion – If the life insured dies by suicide within 1 year from the start/revival of the policy, then the company will not pay any death benefit. It will pay 80% of the basic premiums that have been paid by the insured, if the person dies within 1 year from the start of the policy. It will pay higher of 80% of the basic premiums that have been paid by the insured or the surrender value, if the person dies within 1 year from the revival date of the policy.
SBI Life – Smart Money Planner has many features. Some of them are as follows:
In case of Limited Premium Payment:
If a policy has acquired paid-up value, then policyholders have an option to surrender their policy. In case the policy is surrendered, then the company will pay higher of Non-Guaranteed Special Surrender Value (SSV) or Guaranteed Surrender Value (GSV).
GSV = Minimum GSV + Surrender Value of vested bonuses.
Minimum GSV = GSV factors x basic premium paid – survival benefit instalment that has already been paid. GSV factors are a percentage of basic premium paid:
|Paid-up Value||In case of Limited Premium Payment term – The plan will acquire the paid-up status only if the policyholder has paid premium for a minimum of 2 policy years and he/she has selected Plan 1 and Plan 2. If he/she has selected Plan 3 and Plan 4, then premium for a minimum of 3 years has to be paid. Paid-up Value = Paid-up Sum Assured + Terminal Bonus (if any) + Vested Simple Reversionary Bonus (if any). Paid-up Sum Assured = Basic Sum Assured x number of instalments paid/total number of instalment to be paid under the policy. From the date of acquiring paid-up status, the company will not add any reversionary bonuses to the policy. Policyholders can choose to terminate their paid-up plan before maturity by selecting the surrender policy option for surrender value.|
|Revival||Within 2 years from the 1st unpaid premium date.|
|Free Look Period||15 days (30 days if bought through distance marketing channel).|
|Loan||Policyholders can apply for a loan against their policy, if it has got the Surrender Value. The loan amount cannot be more than 90% of the Surrender Value.|
Death Claim – The nominee/legal heir/policyholder have to inform the company of death of the life insured in writing. They have to mention the policy number, cause and date of death. Along with that they have to provide the following documents:
|Grace Period||15 days for monthly mode. 30 days for other modes.|
SBI Life – Smart Money Planner holders can claim tax benefits under the following Sections:
SBI Life – Smart Money Planner has other benefits apart from the ones mentioned above. Some of them are:
|Calculators and Planners||Customers can use the calculators and planners present on the website of the company to plan their investment.|
|Customer Service||Customers can contact the customer care service 24x7 for any queries related to the policy.|
|Online Payment||Customers can easily pay their premium online on the website of the company.|
|e-Document||Customers can download their Policy document online from the website of SBI Life Insurance Company.|
SBI Life – Smart Money Planner is one of the most popular plans offered by SBI Life Insurance Company. The company has a presence all over India, which makes its products and services easily accessible. It is one of the most trusted names in the insurance industry. It provides 24x7 customer care service, which customers can reach out to for any claims or policy related queries. Apart from the above, the company also conducts an Insurance Awareness Program to familiarize customers with the benefits of investing money in an insurance policy.