SBI Life Smart Elite Plan

Key Features of SBI Life Smart Elite Plan

• Unit Linked Insurance Plan with limited or single premium payment option

• Two protection options – Gold and Platinum

• Inbuilt Accidental rider to increase protection

• Sum Assured can be increased or decreased from the 6th policy year

• Under the Settlement Option, the Fund Value can be withdrawn in five equal instalments over 5 years after the end of the policy term.

• The following funds are available for investment:

• Equity Elite Fund II

• Balanced Fund

• Bond Fund

• Money Market Fund

Benefits

Here are some benefits of the policy:

• On death, under the Gold option, higher of Fund Value less partial withdrawals already made or the base SA is payable subject to a minimum of 105% of all premiums paid till death.

• The insured will get the total Fund Value on Maturity.

• Under the Platinum Option, the Fund Value net of partial withdrawals and the base Sum Assured is paid to the nominee.

• Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Product Specification

Plan Options Under SBI Life Smart Elite Plan

You can invest in one or multiple funds as listed below. If you choose multiple options, each fund must receive an investment in multiples of 1%. 

Here are the categories of funds included in the SBI Life Smart Elite Plan – a ULIP scheme:

Equity Elite Fund II: This fund invests majorly in equities and carries the highest risk. However, Equity Elite Fund II aims to offer a significant return over the long run.

Balanced Fund: The multifaceted fund aims to achieve growth in income through investments in both stocks and fixed-income securities. Balanced fund also strives to maintain a suitable balance between profitability and security.

Bond Fund: This fund offers secure and stable investment growth in the long run. It primarily invests in debt instruments and generates income through investment in fixed-income securities.

Money Market Fund: It offers a chance to put money into liquid and secure financial products, thereby avoiding market uncertainty temporarily.

Pure Fund: The objective of this fund is to provide high equity exposure targeting higher returns in the long term.

Midcap Fund: The goal of this investment fund is to aim for higher returns over the long term by primarily investing in mid-sized companies, with a focus on maximizing equity exposure.

Corporate Bond Fund: The goal of the fund is to provide policyholders with a consistent income by investing in debt securities while maximizing returns by focusing on medium-term maturity Corporate Bonds.

Policy Details

• Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days in other modes.

• Surrender Benefit: Policyholder is allowed to surrender their SBI ULIP policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. Upon completion of 5 years, the fund value in the Discontinued Policy fund as of that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire Fund value on the date of surrender is paid without any charges

• Free Look Period: You have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

• One free partial withdrawal is allowed every year which should be a minimum of Rs. 5,000 and maximum of 15% of the Fund Value as of the date of withdrawal

• Premium redirection is available from the 2nd policy year

• 2 free switches are allowed per policy year

Additional Features or Riders

• No Premium Allocation charges form the 6th policy year thereby increasing returns

• There is an inbuilt Accidental Death and Accidental Total and Permanent Disability Rider under the plan

Exclusions

• The benefit paid in case of suicide within 12 months of policy inception is the fund value as on that date.

• For both the riders, accidents due to infection, drug abuse, self-inflicted injury, war or civil commotion, criminal acts, aviation, etc. are excluded.

How To Buy SBI Life Smart Elite Plan?

You can follow these easy steps to buy the policy:

• Fill out application/proposal form with accurate medical history

• Include address proof and KYC documents

• Medical examination may be necessary depending on sum assured and age

Policy Discontinuation

What happens if you stop paying premiums under certain situations?

1. If you stop paying the premium before 5 years

   • Policy holder stops paying premium Insurance cover ceases

   • Fund value (net of discontinuance charge) transferred to Discontinued Policy Fund

   • Discontinued Policy Fund earns minimum guaranteed interest rate (same as savings bank account of State Bank of India)

   • Proceeds payable after 5th policy anniversary

   • In case of Life Assured's death, only accumulated Fund Value payable to nominee

   • Policy can be revived within 2 years of first unpaid premium due date.

2. If you stop paying the premium after 5 years

   • Policy holder stops paying premium after 5 years

   • No Surrender/Discontinuance Charges

   • Fund Value paid to policy holder

   • Policy terminates immediately

3. If you want to surrender the policy

   • Policy holder can surrender policy before 5 years

   • Insurance cover will cease

   • Fund Value (minus discontinuance charge if applicable) will be transferred to Discontinued Policy Fund

   • Discontinued Policy Fund earns minimum guaranteed interest rate like SBI savings account

   • Proceeds payable after 5th policy anniversary

   • In case of Life Assured death, only accumulated fund value payable to nominee.

In Conclusion 

The State Bank of India Life Smart Elite Plan is a comprehensive ULIP plan designed to provide financial protection to policyholder and their families. The plan provides coverage in case of death and helps ensure the nominee remains financially secure. The State Bank of India Life Smart Elite Plan is a well-rounded and reliable insurance plan for those looking to safeguard their future.