Life isn’t merely about living in the present, it is also about planning for the future. It pays to invest in a good insurance scheme, with the SBI Life Smart Power Insurance Plan being an ideal option for those looking to secure the future of their family. This is a non-participating ULIP which doubles as an insurance plus investment plan, making it an ideal solution in today’s fast paced world. One can choose to customise it based on their current needs and future expectations, with this plan offering adequate cover at affordable prices. This policy comes with two plan options, offering two different fund options, helping one find the best solution for their financial needs.
Individuals looking to invest in the Smart Power Insurance Plan from SBI Life 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||45 years|
|Maximum age at maturity||65 years|
|Plan options to choose from||Based on sum assured:
Sum Assured – The sum assured is the ultimate benefit which is guaranteed to a policyholder. This is the amount which the insurer pays to the nominee if the policyholder passes away during the policy term. This is also the basic amount the policyholder is entitled to receive on maturity. The sum assured depends on the premium paid by an individual, with it highlighted in the table below:
|Minimum Sum Assured||Higher of:
|Maximum Sum Assured||20 times the annualised premium|
Premium* - Each policyholder is expected to pay a certain amount towards maintaining the policy. This amount determines the sum assured and is called the premium. One can choose to pay a premium based on his/her requirements, with this amount varying based on the age of policyholder, term of policy, premium payment frequency, etc.
|Minimum term of the policy||10 years|
|Maximum term of the policy||30 years|
|Premium Payment Term||Equivalent to policy term|
|Premium Payment Frequency||
|Minimum Single Premium Amount||No single premium under plan|
|Maximum Single Premium Amount||No single premium under plan|
|Minimum Monthly Premium Amount||Rs.2,000|
|Maximum Monthly Premium Amount||No upper limit|
|Minimum Quarterly Premium Amount||Rs.5,500|
|Maximum Quarterly Premium Amount||No upper limit|
|Minimum Half-yearly Premium Amount||Rs.9,500|
|Maximum Half-yearly Premium Amount||No upper limit|
|Minimum Yearly Premium Amount||Rs.15,000|
|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.
The SBI Life Smart Power Insurance Plan not only provides life cover to an individual, it also doubles up as a smart investment option. The plan offers the following protection to a policyholder, irrespective of the plan option chosen by him/her.
|Life Cover Benefit||In the event of demise of policyholder within the policy term, his/her nominee will be paid the Life Cover Benefit. This amount is equivalent to the higher of the sum assured or the fund value at time of death, with the minimum amount being 105% the premiums paid.|
|Maturity Benefit||A maturity benefit is paid to the policyholder on his/her survival till maturity. This amount includes the fund value, which is paid as a lumpsum amount. A policyholder can also choose to receive the maturity benefit in instalments, with the amount paid for a period of five years after maturity. He/she can opt for monthly, quarterly, half-yearly, or yearly payment, based on current requirements.|
|Accelerated Total & Permanent Disability Benefit||In case of total and permanent disability of a policyholder due to an illness or accident, SBI Life will pay the life cover benefit to the policyholder/nominee. Once paid, the policy ceases to be in force.|
The SBI Life Smart Power Insurance Plan does not come with any rider options currently.
There are certain exclusions under the SBI Life Smart Power Insurance Plan, as highlighted below:
|Free look period||A policyholder can choose to return the policy if he/she is not satisfied with the terms and conditions. A 30 day free look period is provided if the policy is purchased via distance marketing. In case of all other modes of policy purchase, the free look period is 15 days.|
|Revival||Lapsed policies can be revived within two years of first unpaid premium by paying all dues. Revival is subject to the terms and conditions enforced by the company.|
|Fund options||There are 7 investment fund options under this plan:
|Partial withdrawal||A policyholder can make partial withdrawals from the 6th policy year, with two free partial withdrawals permitted per year. The number of partial withdrawals in a year is limited to 4.|
|Switching||A policyholder can choose to switch between funds. Two free switches are permitted each year, with a switching charge of Rs.100 levied on extra switches.|
SBI Life Smart Power Insurance Plan offers the following tax benefits to individuals:
Note: The limit of tax exemption depends on current interest rate slabs and is subject to change.
It is important to plan our future, for an unforeseen event could hamper not just our life, but also the lives of our loved ones. Investing in the Smart Power Insurance Plan from SBI Life Insurance provides a sense of comfort, knowing that the financial security of our loved ones is taken care of if something happens to us. This plan is affordable, offering a range of fund options to choose from. A policyholder can customise the plan to match his/her growth expectations, with SBI Life offering the option to switch between funds. In addition to the benefits offered by the plan, SBI Life also has a high claim settlement ratio (93.39% as of 2015-2016), with its grievances resolved ratio being 99.97%.