SBI Life: Smart Elite Policy Review

By | December 13, 2016
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SBI Life Smart Elite policy is basically a Unit Linked Insurance Plan (ULIP). This doubles as an investment portfolio by adding up to a life insurance policy. In this policy the premium requires to be remunerated in a lump sum under the single premium paying mode or for a restricted phase under the limited premium paying mode. This policy mainly provides the two choices of selecting the level of protection that are Gold and Platinum, which requires to be selected as per the life stage and need.

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SBI Life Insurance Company Details

If the option of Gold is selected then the death benefit under this policy will be higher of the sum assured or the fund value subject to the 105% of the total premiums compensated till date. Moreover, if the option of Platinum is chosen then there is a dual death benefit under this policy of sum assured plus fund value which is subject to a minim of 105% of the premiums which are compensated till date. On endurance till the end of the term of the plan, the fund value is compensates to the insured persons as the maturity benefit and the policy terminates. In addition to this, there is an intrinsic rider of accidental, death as well as accidental total and permanent disability benefit in this policy.

Key features of SBI Life Smart Elite:

Some of the main features of SBI Life Smart Elite policy are as following:

  • In this policy there is no Premium Allocation Charges from the 6th policy year onwards.
  • You get an option to reimburse premium as one time Single premium or increase it over limited tenures of 5, 8 or 10 years.
  • The enhanced fund value after the 5th year of the policy as premium allocation charges are not valid from then.
  • This policy also offers the various fund options which are available for investing in as well as ability for managing them as per your risk profile and preferences.
  • You can pay the premium on single variants or monthly, quarterly, half-yearly and yearly basis.
  • This plan also offers an insurance cover worth up to 7-10 times the yearly premium by you according to your age group.
  • One can have the greater control of investments by switching and redirecting features.

Benefits of SBI Life Smart Elite:

  • Death Benefit: If the policyholder dies within the term of the policy, the nominee will get the:
  • In gold option: Higher of Sum Assured or Fund Value with at least 105% of generally premium collected to be compensated in either case.
  • In Platinum Option: Sum Assured as well as Fund Value as Death Benefit with at least 105% of generally premium collected to be compensated in either case.
  • Maturity Benefit:

When the plan matures, the Fund Value is compensated to the insured person as Maturity Benefit and the policy finishes.

  • Tax Benefit:

In this policy the tax benefits are exist under the section 80C of the Income Tax Act. The deductions are limited up to 10 percent of sum assured in case the premium gathering in a year exceeds 10% of sum assured.

  • Riders:

There is no additional rider in this policy. Moreover, there is an intrinsic rider in this policy that is the Permanent Disability (Accidental TPD) and Accidental Death and Accidental Total benefit.

  • Partial Withdrawal:

The partial withdrawal in this policy is allowed from the 6th year of the plan onwards. This plan provide one free partial withdrawal every year post in which there is a charge of Rs 100 for every withdrawal. Furthermore, the maximum of 2 Partial Withdrawals are allowed peer year of the policy and an utmost of 5 in the entire Policy term of 10 years or less up to an utmost of 10 for Policy term over 10 years.

  • Switching:

The least amount of switch is Rs 5000 and there are 2 free switches every year in this policy. A charge of Rs 100 will be charged for any switch after the free ones.

Apart from this, the applicants within the age group of 18-60 years can purchase this plan; as well as the Maximum age at maturity of a candidate must not go beyond 65 years. Moreover, the product snapshot of SBI Life Smart Elite is given below:

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Age at Entry ·         Min: 18 years ·         Max: 60 years
Age at Maturity ·         65 years
Policy Term ·         5 to 20 years (both inclusive)
Premium Payment Term
·         For Limited Premium Payment Term (LPPT) – 5 or 8 or 10 years.
·         For Single Premium – Single Payment.
Minimum Limited Premium Amount (X 100)

Minimum Single Premium Amount (X 100)

Maximum Limited/Single Premium Amount (X 100)

·         Yearly Rs 150,000
·         Half-yearly Rs   75,000
·         Quarterly Rs   37,500
·         Monthly Rs   12,500
Rs 200,000
·         No limit
Premium Modes ·         Single /Yearly /Half-yearly /Quarterly / Monthly
Sum Assured ·         Minimum:
             For LPPT –·         For Ages  below 45 yrs : 10 x Annual Premium (AP)

·         For Ages  45yrs & above: 7 x AP

 

For Single Premium (SP) –
For Ages below 45 yrs : 1.25 x SP
For Ages 45yrs & above: 1.10 x SP

 

·         Maximum:
For LPPT –

 

·         For All Ages – 20 x AP
For SP –

 

·         For All Ages – 5 x SP

 

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