SBI Life: Smart Wealth Builder Insurance Policy Review

By | December 26, 2016
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SBI Life Smart Wealth Builder is a unit linked non participating insurance policy. It is an effort for meeting all your monetary as well as insurance requirements through a single product. You can select your needed life insurance cover subject to least or utmost level with SBI Life Smart Wealth Builder Insurance plan. In this plan the minimum return is definite and the maximum returns is mainly depend performance of the market.

SBI Life Insurance Company Details

  • Eligibility criteria:
Age of entry Ø  Minimum: 7 Years

Ø  Maximum:

For Regular & Limited Premium: 60 years

For Single Premium: 65 years

Age of Maturity Ø  Maximum: 70 years.
Term of policy Ø  Regular Premium:10,15 to 30 years(both inclusive)

Ø  Limited Premium paying term:10,15 to 30 years(both inclusive)

Ø  Single premium: 5 to 30 years(both inclusive)

 

  • Features SBI Life Smart Wealth Builder plan:

The features of SBI Life Smart Wealth Builder plan are as following:

  • There is no management fee for the regular and limited premium paying tenure for first 5 years, thus raises your fund value.
  • The guaranteed additions up to 125% are obtainable on the regular yearly premium.
  • You will receive the guaranteed additions which depends on the plan term, for higher plan tenure higher the definite addition.
  • The definite additions start from 10th policy year.
  • There is no premium Allocation Charge from 11th year beyond.
  • Person will get Life Insurance coverage, with the least Sum Assured based on his age.
  • Is there is also a choice of paying premiums often or for limited period or by lump sum.
  • One will receive an enhanced investment chance by 7 various fund alternatives.
  • This is a flexible product with an alternative to raise or decrease your Sum Assured from 6 th policy year beyond.
  • One will also receive the Maturity Benefit in intermittent installments by settlement alternative.
  • Benefits of SBI Life Smart Wealth Builder Policy:

The benefits of SBI Life Smart Wealth Builder Policy are as following:

  • Death Benefit:

In case of demise of the insured person, the nominee gets the higher of the Fund Value or Sum Assured is owed with a least of 105% of whole basic premiums compensated till the date of intimation of demise. Moreover, the sum assured will be reduced to the point of limited withdrawals made in the last 2 years for age on death underneath 60 years and for age on demise 60 years and over.

  • Maturity Benefit:

On ending of Policy Term, Fund Value will be compensated in a lump sum to the policyholder. The Maturity benefit is obtainable in the Settlement option in this plan which helps you in getting the intermittent installments of maturity benefit in 2 – 5 years from the date of maturity.

  • Income Tax benefit:

In Life insurance you can compensate upto the Rs. 1,00,00 as premium each year without paying any tax under Section 80CCC. Moreover, a tax-free death benefit is too obtainable under Section 10(10D).

  • Other information:
  • Moreover, documents which are required to apply SBI Life Smart Pension Policy are as following:
  • Identity Proof
  • Age Proof
  • Address Proof
  • Income Proof
  • PAN Number
  • Policy Revival:

This policy gives you a Revival period of 2 years from the time of discontinuance.

  • Free Look Period:

You can review the terms and conditions of the plan within 15 days for the policies sourced by any of the conduit mode other than distance marketing as well as 30 days for distance marketing. Additionally, you can call off the plan in 15 days of receipt of plan document, if you are not influenced with the Terms and Conditions of the plan.

  • Grace Period:

A Grace Period of 30 days will be permissible in SBI Life Smart Wealth Builder Insurance Policy.

  • NAV calculation:

NAV of the Fund shall be calculated as the market value of investment held by fund plus value of current assets subtracting the worth of current liabilities and provisions.

  • Option of switching:

You can switch your investments amid the 7 funds for suiting your changing investment requirements. Moreover, the Minimum switch amount is Rs. 5000/-.

  • Charges in SBI Life Smart Wealth Builder:
  • Guaranteed Additions (GA):

The premium which is paid by the policyholder is invested across the investment funds, which increases your fund value. The fund value is rewarded in form of Guaranteed Additions at the ending of the certain Policy tenure. Below is the percentage of GA – for regular, limited as well as single premium policies.

Policy Year End Regular Premium Policy (in %) Limited Premium Policy Single Premium Policy (in %)
5 PPT (in %) 8 PPT (in %) 10 PPT

(In %)

·         10 ·         5 ·         5 ·         5 5 ·         5
·         15 ·         15 ·         5 ·         10 10 ·         5
·         20 ·         25 ·         10 ·         10 15 ·         5
·         25 ·         35 ·         10 ·         10 20 ·         7
·         30 ·         45 ·         10 ·         15 25 ·         8

 

  • Fund Management Charges:

A sure fixed percentage of funds before calculating NAV will be charged on every day basis.

Fund Name Fund Management Charge
Equity Fund 1.35% p.a
Balanced Fund 1.25%p.a
Money Market Fund 0.25%p.a
Equity optimiser Fund 1.35%p.a
Top 300 Fund 1.35% p.a
Bond Fund 1.00%p.a
Growth Fund 1.35%p.a
Discontinued Policy Fund 0.50%p.a

 

  • Discontinuance charges:

The discontinuance charges are expressed as the percentage of yearly premium or Fund value.

Year of discontinuance Discontinuance charges
Ist ·         Lower of 1%(single premium or fund value) subject to maximum of Rs.6000.
2nd ·         Lower of 0.5%(single premium or fund value) subject to maximum of Rs.5000.
3rd ·         Lower of 0.25%(single premium or fund value) subject to maximum of Rs.4000
4th ·         Lower of 0.1%(single premium or fund value) subject to maximum of Rs.2000
5th year onwards ·         NIL

 

  • Miscellaneous Charges:

To issue an extra or the duplicate copy of fund statement a charge of Rs. 100 per statement will be charged.

Furthermore, the snapshot of SBI Life Smart Wealth Builder is given below:

Ø  Premium Payment Term ·         For LPPT:

5/8 Years for Policy Term of 10 Years.
5/8/10 Years for Policy Term of 15-30 Years (both inclusive)

·         Regular Premium : Same as Policy Term

·         Single Premium : One-time payment at policy inception

Ø  Premium Amount
(X 100)
Plan Type Premium Frequency Minimum Maximum
·         Regular premium Annual Rs. 30,000 Rs. 3,00,000
·         Limited premium Annual Rs. 40,000
·         Single premium Single Rs. 65,000
Ø  Premium Modes ·         Single / Yearly
Ø  Sum Assured
Premium Mode Minimum (in Rs.) Maximum (in Rs.)
Age below 45 years Age 45 years or above Age below 45 years Age 45 years or above
·         Regular Premium Higher of
[(10 x AP ) or (0.50 x Term x AP)]
Higher of
(7 x AP) or (0.25 x Term x AP)]
20 x AP 20 x AP
·         Limited Premium 15 x AP 15 x AP
·         Single Premium 1.25 x SP 1.1 x SP 3 x SP 1.25 x SP

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