SBI Life Investment Plan For Girl Child

Investment Plans Offered by SBI for Girl Child

The investment options for a girl child offered by SBI are some of the best child plans you can invest in. SBI-Life offers 3 key child plans for you to invest in. These plans are a combination of life cover and market-linked investments. These plans allow you to directly earn returns on your capital while your child is insured during the policy term. The following table lists the child plans offered by SBI.

Details About the Investment Plans Offered by SBI for Girl Child

1. SBI Life Smart Scholar Plan

   The SBI Life Smart Scholar is a unit-linked insurance plan (ULIP), wherein a part of the premiums is used for insurance, and the other part is invested in equities, debts, bonds, etc., or a combination of all these. The returns generated through these investments are on the higher side as compared to traditional savings options such as FD, PPF, etc., given the risk involved. The risk of investment in such plans is completely borne by the investor. Should there be any market fluctuations, the investor (or the parent in this case) stands a chance to lose or gain money depending on the performance of the funds. However, if you constantly monitor the funds’ performance, you can detect the irregularities yourself and switch between funds accordingly.

   Key Features of SBI Life Smart Scholar Plan

   This SBI investment plan for the girl child offers benefits of market-linked returns, loyalty additions, as well as a premium waiver.

   • Lock-in Period: The money invested cannot be withdrawn for a period of 5 years. This ensures that the amount remains invested and continues generating returns for a minimum of 5 years.
   • Premium Waiver: If the parent dies within the specified policy term, SBI Life waives off future premiums payable. The fund value remains invested and continues accruing returns till the end of the policy term.
   • Loyalty Additions: Additional fund units will be allocated to the base fund on completing certain policy years within the policy term. For a policy term of 15 years, loyalty additions are made on completing the 9th, 12th, and 15th years. Likewise, for a policy term of 25 years, the additional units are added on the 10th, 13th, 16th, 19th, 22nd, and 25th years.
   • Fund Options: You can choose from 10 different funds ranging from equity-based funds to money market as per your risk tolerance and financial goals
   • Accident Benefit: It provides an additional lump sum equal to the accident sum assured to the child if the policyholder passes away in an accidental death. The accident sum assured is paid in 10 equal instalments if the accident causes accidental total and permanent disability.
   • Eligibility:
     • Parent: 18-50 years
     • Child: 0-17years

2. SBI Smart Future Star

   SBI Smart Future Start is a non-linked, participating, individual life insurance and savings instrument which allows a parent to ensure that their child is protected using a life cover while also earning returns from the bonuses declared by the company. What sets this plan apart is that the plan is bought in the name of the child. This means that the child is the policyholder and the parent is the proposer.

   Key Features of SBI Smart Future Star

   • Dual benefit: The plan combines the benefits of life insurance along with the benefits of market-linked savings using bonuses declared by the company. This helps in not only ensuring that the child is protected financially but also has a healthy corpus through the earned bonuses.
   • Participating nature: The plan, using its participatory nature, offers reversionary bonuses which are declared annually by companies and terminal bonuses to create a corpus for the child’s future.
   • Waiver of premiums: The plan has an inbuilt waiver of premiums feature. If the parent/policyholder dies during the policy term, the remaining premiums of the plan are paid by the company so that the child can receive the full benefits of the plan irrespective of the presence of the parent.
   • Payout: The plan also allows for flexible payout options. You can choose to withdraw your final corpus as a lump sum or use the settlement option to defer the payments for 1-7 years. You can also opt to receive your final corpus in the form of instalments over 2-7 years.
   • Eligibility:
     • Age of the child: 30 days to 15 years
     • Age of the parent: 18 to 50 years
     • Death benefit: If the child/policyholder dies due to unfortunate circumstances, a lump sum consisting of the sum assured along with all the declared bonuses is paid to the parent.

3. SBI Smart Platina Young Achiever

   The SBI Platina Young Achiever is a non-linked, non-participating, individual child plan which is designed to ensure that a child’s future is protected through guaranteed and fixed returns at the end of the policy term.

   Key features of SBI Smart Platina Young Achiever

   • Guaranteed benefits: The plan provides an investment option to parents which is completely risk-free. It offers fixed and guaranteed returns when your plan matures. Market fluctuations do not affect the final corpus accumulated for your child’s future goals.
   • Guaranteed additions: Guaranteed additions are added to the corpus at the end of every year from the first year to the last year of the policy term. The rate of accrual depends on the premium payment term and the annual premium.
   • Waiver of premium: In case the parent of the child dies during the policy term, all remaining premiums are waived off so that the child can reap the full benefits of the plan irrespective of the parent’s presence.
   • Payout: The plan offers a flexible payout option. The policyholder can choose the settlement option which allows them to defer the lump sum payment by 1-7 years, receive the corpus in instalments over 2-7 years or combine partial lump sum withdrawals and instalments as per their preference.
   • Death Benefit: If the child passes away during the policy term, 105% of the total premiums paid to the parent.
   • Eligibility
     • Age of the parent: 18- 65 years
     • Age of the child: 20 days to 15 years

Conclusion

SBI offers different investment plans for parents of a girl child to invest in. These plans not only cater to different types of investors but also cater to the academic and financial needs of a girl child. Apart from child plans offered by SBI, you can also look at the best investment plans to invest in for your future financial goals and choose a plan that best suits your financial goals and risk profile.