SBI Life Smart Champ Insurance Plan

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Introduction/Overview

SBI Life Smart Champ Insurance is a participating traditional Child Plan designed specifically to provide for the child’s future needs even if the parent is not around.

Key Features

  • It is a participating Child Plan with Single Pay or Limited Premium payment option
  • Accidental Total and Permanent Disability rider and Waiver of Premium Rider is inbuilt in the plan for maximum protection
  • Guaranteed Smart Benefits, Simple Reversionary Bonus and Terminal Bonus further increase the corpus built

Benefits

  • Guaranteed Smart Benefits are paid for 4 years @ 25% of the Basic Sum Assured and 25% of the vested Simple Reversionary Bonuses after the child attains 18 years and till he reaches 21 years
  • On maturity, the last instalment of the Smart Benefit including vested Bonuses and Terminal Bonus, if any, is paid to the policyholder
  • On death or disability of the policyholder within the term, a lump sum death benefit will be paid which will be a multiple of the Single or Annual Premium paid depending on the age of the policyholder.
  • The future premiums are waived but the policy continues and future bonuses also accrue
  • Smart Benefits are paid as under the original terms.
  • Alternatively, the discounted value of Smart Benefits  and vested bonuses can be received in one lump sum in the last 3 premium years
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

Policyholder – 21 years

Child  -  0 years

Policyholder – 50 years

Child – 13 years

Maturity Age (Last Birthday)

-

Policyholder – 70 years

Child – 21 years

Policy Term (PT) in years

21-child’s entry age

Premium Paying Term (PPT) in years

Single Pay or 18-child’s entry age

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly or Single Pay

Yearly Premium

Single – 66,000

Annual - 6000

Based on maximum SA

Sum Assured

1,00,000

1 crore

Details About Premium

Annual premium in Rupees for a policy tern of 15 years

Age of the policyholder

30 years

Age of the child

6 years

PPT

12 years

Sum Assured

250,000

Premium

21,013

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days in other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 2 years in case of Limited Pay and anytime in case of Single Pay. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.

GSV = GSV Factor * Basic premiums paid including the GSV of vested bonuses excluding the Smart Benefits already paid

SSV = Paid-up Value * SSV Factor

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Additional Features or Riders

  1. There is inbuilt Waiver of Premium and Accidental Total and Permanent Disability Rider
  2. Large SA rebates are offered for coverage of 2 lakhs and above

Inclusions

  • loans are available under the plan @ 90% of Surrender Value

Exclusions

  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid
  • For the disability rider, accidents due to infection, drug abuse, self-inflicted injury, war or civil commotion, criminal acts, aviation, etc. are excluded

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.