SBI Life Smart Humsafar

What is SBI Life Smart Humsafar?

The SBI Life Smart Humsafar is described as a with-profit joint life endowment assurance investment plan. It is a participating traditional insurance product and offers an excellent package of insurance cum investment solutions. Being a participating policy, you are entitled to a share of the profits emerging from the insurer's 'participating life insurance business', which is paid as bonus. The benefits under this policy are subject to the payment of premiums as and when due.

Features of SBI Life Smart Humsafar

The key features of SBI Life – Smart Humsafar are:

1. Joint Life Coverage:

   This SBI life investment plan is a "JOINT LIFE" policy, covering two lives assured simultaneously.

2. Participation in Profits:

   As a participating policy, it receives a share of profits in the form of regular Simple Reversionary Bonus and Terminal Bonus. Participation in further profits ceases if premiums are not paid when due.

3. Endowment Plan:

   It provides benefits upon the death of the life assured(s) during the policy term or upon survival until the Date of Maturity.

4. Insurance cum Investment:

   It is presented as a solution offering both insurance protection and investment aspects.

Eligibility Criteria for SBI Life Smart Humsafar

Benefits of SBI Life – Smart Humsafar

The key benefits provided under this guaranteed return policy are:

1. Participation in Profits:

   The policy receives bonuses, specifically Simple Reversionary Bonus and Terminal Bonus, which enhance the final payout.

2. Death Benefit:

   This is payable upon the death of the life assured(s) during the policy term.

3. On First Death:

   If the policy is in force, the benefit is the higher of:

   • The Basic Sum Assured.

   • A multiple of the annualised premium (10 times if Equivalent age at entry was less than 45 years, 7 times if 45 years or more).

   • 105% of all the premiums paid under the base policy till the date of first death.

   • Additionally, all future due premiums starting from the next policy anniversary are waived.

   • On First Death (if Paid-up): If the policy is not in force but has acquired paid-up value, the paid-up sum assured on death is paid.

4. On Second Death:

   If the policy is in force (after the first death), the benefit is the higher of:

   • The Basic Sum Assured plus vested simple reversionary bonuses plus terminal bonus, if any.

   • A multiple of the annualised premium plus vested simple reversionary bonuses plus terminal bonus, if any (10 times if Equivalent age at entry was less than 45 years, 7 times if 45 years or more).

   • 105% of all the premiums paid till the date of first death (including waived premiums).

   • On Second Death (if Paid-up on First Death): If the policy was not in force on the date of first death but had acquired paid-up value, the paid-up value on death is paid.

   • Simultaneous Death: If both lives assured die simultaneously, the sum of the applicable death benefit under first death and second death is paid.

5. Maturity Benefit:

   If the policy is in force and at least one life assured survives to the Date of Maturity, the benefit is the Basic Sum Assured along with the vested simple reversionary bonus plus terminal bonus, if any. If the policy is not in force but is paid-up, the paid-up value on maturity is paid.

6. Surrender Value:

   A value is payable if the policy is surrendered after acquiring paid-up value.

Riders Under SBI Life Smart Humsafar

SBI Life – Accidental Death Benefit Rider (UIN: 111B015V02) is an option available for both the first and second life assured.

Additional Details of SBI Life Smart Humsafar

1. Bonuses:

   Simple Reversionary Bonus (also called Regular Bonus) is declared annually based on statutory valuation. Once declared, it is guaranteed and payable at the time of settling a death or maturity claim. In case of surrender, a discounted value of the bonus may be payable. A Terminal Bonus may also be paid based on experience at death, surrender, or maturity.

2. Premium Payment:

   Premiums can be Single or Regular. Regular premium frequency options are Yearly, Half-Yearly, Quarterly, or Monthly. Premiums must be paid on or before the due dates or within the grace period. Future due premiums are waived after the first death, provided the policy is in force. Premium frequency can be changed on a policy anniversary with a written request.

3. Grace Period:

   A 30-day grace period is provided for Yearly, Half-Yearly, and Quarterly premium frequencies. A 15-day grace period applies to the monthly frequency. The policy remains in force during the grace period.

4. Non-Forfeiture Benefits:

   The policy acquires a Paid-up Value if at least 3 full policy years' premiums have been paid. Once paid-up, no further regular simple reversionary bonuses are allocated, and the policy does not participate in any profits.

5. Surrender:

   The policy can be voluntarily surrendered for a Surrender Value if it has acquired paid-up value. The amount is the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). GSV is calculated based on basic premiums paid and GSV factors. SSV is declared periodically based on experience. Surrender terminates all rights and benefits.

6. Revival:

   A lapsed policy can be revived within a 2-year period from the date of the First Unpaid Premium or before maturity, whichever is earlier. Revival requires a written request, potential underwriting (including Good Health Declarations), and payment of all due premiums with interest. Revival is effective only upon acceptance in writing by the insurer.

7. Policy Loan:

   A loan facility is available against the policy once it has acquired Surrender Value. The loan amount will not exceed 90% of the Surrender Value. Interest accrues on the outstanding loan.

8. Free-Look Period:

   You have a period to review the policy terms after receiving the document. This period is 15 days for policies not purchased through Distance Marketing and 30 days for policies purchased through Distance Marketing. The policy can be returned for a refund (minus deductions) within this period.

9. Nomination and Assignment:

   Nomination is possible as per Section 39 of the Insurance Act, 1938. Each life assured is the natural nominee for the other. Assignment is possible as per Section 38 of the Insurance Act, 1938.

10. No Explicit Charges:

    Being a non-linked product, there are no explicit charges under this policy.

Suicide Exclusion

If a life assured commits suicide within one year from the date of commencement of risk or date of revival, the death benefit will not be paid. Instead, if suicide occurs within one year of the commencement of risk, 80% of the premiums paid under the policy will be paid. If suicide occurs within one year of revival, the payout is 80% of the premiums paid under the base policy or the surrender value, whichever is higher. The contract terminates after this payment.