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SBI Life - Smart Power Insurance Plan

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.

Eligibility – Who is the SBI Life Smart Power Insurance Plan for?

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:
  • Level Cover Option – In this option the sum assured does not change over the policy term.
  • Increasing Cover Option – In this option the sum assured increases by 10% annually from the sixth year of the policy. This increase continues for 5 years.
Based on funds:
  • Trigger Fund Option
  • Smart Fund Option

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

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:
  • 10 times the annualised premium, or
  • 0.50 times the annualised premium multiplied by the term (0.50 x annualised premium x term)
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
  • Monthly
  • Quarterly
  • Half-yearly
  • Yearly
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.

Plan Coverage – What the SBI Life Smart Power Insurance Plan covers?

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.

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

The SBI Life Smart Power Insurance Plan does not come with any rider options currently.

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

There are certain exclusions under the SBI Life Smart Power Insurance 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 doesn’t matter, as suicide committed even in an insane frame of mind is excluded under the policy. The insurer will pay the nominee the amount in the fund of a policyholder as on the date of suicide. The policy will cease to exist once this amount is paid.
  • Accelerated Total & Permanent Disability Benefit exclusion – No benefit will be paid if disability occurs due to any of the reasons mentioned below:
    • If a policyholder sustains injury which is intentional and self-inflicted. Disability due to attempted suicide is excluded in the policy.
    • Any disability due to intoxication/effect of drugs.
    • Any incident due to war/civil hostility, rebellion, etc.
    • Disability on account of nuclear contamination.
    • Disability on account of participation in criminal activities.
    • Any disability which occurs due to participation in dangerous sports/adventure activities.
    • Pre-existing ailments.
    • Any disability which occurs due to HIV/AIDS.
    • Members of armed forces who face injuries while on the battlefield/in the line of duty.

Other Key Features of SBI Life Smart Power Insurance Plan:

Grace period
  • If premium is paid monthly, a grace period of 15 days is provided.
  • In case of premiums made yearly, half-yearly, or quarterly, the grace period is 30 days.
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:
Fund name Risk profile
Equity Fund High
Top 300 Fund High
Equity Optimiser Fund High
Growth Fund Medium-High
Balanced Fund Medium
Bond Fund Low-Medium
Money Market Fund Low
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.

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

SBI Life Smart Power Insurance Plan offers the following tax benefits to individuals:

  • The premiums paid by a policyholder are eligible for tax deductions under Section 80C of the Income Tax Act. This depends on the sum assured chosen by a policyholder.
  • The amount received by the nominee of a policyholder as death benefit is exempt from tax.
  • The amount received at maturity is eligible for tax exemption under Section 10(10D) of the Income Tax Act.

Note: The limit of tax exemption depends on current interest rate slabs and is subject to change.

Why you should buy the SBI Life Smart Power Insurance Plan?

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%.