SBI Life – Smart Elite Plan

What is SBI Life Smart Elite Plan?

SBI Life Smart Elite is a non-participating, Unit Linked Insurance Plan (ULIP) that combines investment benefits with family protection. The SBI Smart Elite plan is market-linked, providing the policyholder with the potential to earn higher returns. This unit-linked life insurance product gives you the flexibility to pay premiums for a limited term or as a single premium, with the freedom to stay invested and protected for the long term. The plan also offers a liquidity option in the form of partial withdrawals starting from the 6th policy year.

SBI Life Smart Elite Plan Features

SBI Life investment plans provide you with dual benefits of investment and insurance. The features offered by SBI Elite Plan are: 

• Unit Linked Insurance Plan with limited or single premium payment option.

• Two protection options – Gold and Platinum.

• Inbuilt Accidental rider to increase protection.

• No premium allocation charge from the 6th policy year onwards, thereby enhancing your fund value.

• Life insurance coverage is 7 times the annualized premium for limited premium payment terms and 1.25 times the single premium for single premium policies.

• Switch and redirection facility, to pilot your investments.

• Under the settlement option, the fund value can be withdrawn in installments over 2 to 5 years after the policyholder's death.

• The following funds are available for investment:

  • Equity Elite Fund II

  • Balanced Fund

  • Bond Fund

  • Money Market Fund

  • Bond Optimiser Fund

  • Pure Fund

  • Midcap Fund

  • Corporate Bond Fund

SBI Life Smart Elite Plan Benefits

SBI Life Elite Plan is a good investment option that offers the following benefits: 

1. Death Benefit:

   • Gold Option: In the unfortunate event of the life assured's death, the beneficiary receives the highest of: the Fund Value (minus recent partial withdrawals), the Sum Assured (minus recent partial withdrawals), or 105% of the total premiums paid to date (minus recent partial withdrawals).

   • Platinum Option: The beneficiary receives the higher of: the Fund Value plus the Sum Assured, or 105% of the total premiums paid up to the date of death.

   • Settlement Option: The nominee or beneficiary can choose to receive the death benefit as a lump sum or in installments over a period of 2 to 5 years. During this period, the investment risk is borne by the beneficiary.

   

2. In-built Accident Benefit:

   • An additional benefit equal to the Basic Sum Assured (up to a maximum of ₹50 Lakhs) is provided for Accidental Death or Accidental Total and Permanent Disability (TPD).

   • Accidental death benefit is paid as a lump sum.

   • The accidental TPD benefit is paid to the life assured in 10 equal annual installments.

   • This benefit is not available if the policy is in paid-up status.

3. Maturity Benefit:

   • On survival of the life assured up to maturity, the fund value as on the date of maturity shall be paid as a lump sum.

4. Tax Benefit:

   You may be eligible for Income Tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time. Please consult your tax advisor for details.

Eligibility Criteria of SBI Life Smart Elite Plan

Selecting the right investment plan is important for a secured financial future, ensuring flexibility and long-term benefits. Understand the SBI Life Elite Plan eligibility criteria below: 

SBI Life Smart Elite Plan Additional Details

1. Grace Period: 

   • A grace period of 30 days is allowed for Yearly, Half-yearly, and Quarterly premium frequencies, and 15 days for monthly payments.

2. Surrender Benefit: 

   You are allowed to surrender your SBI ULIP policy after 5 completed years.

   • During the first 5 years: The fund value, after deducting applicable discontinuance charges, is transferred to the 'Discontinued Policy Fund'. This fund earns a minimum interest of 4% p.a., and the value is paid on the first working day of the 6th policy year.

   • After 5 years: The fund value will be paid immediately without any charges.

3. Free Look Period:

   • You can review the policy for 15 days (for physical policies) or 30 days (for electronic or distance marketing policies) from the date of receipt. If you disagree with the terms, you can return the policy for a refund.

4. Partial withdrawals:

   • Available from 6th policy year. The minimum withdrawal is ₹5,000, and the maximum is 15% of the fund value.

5. Premium Redirection:

   • This facility is available from the 2nd policy year onwards.

   • Switching Option: You can switch your investments among the available funds. Two switches are free in a policy year.

   

6. Discontinuation of Policy

   • Discontinuation within the first 5 years:

     • If you stop paying premiums, the fund value (after charges) is moved to the Discontinued Policy Fund, and the risk cover ceases.

     • You have 3 years to revive politics.

     • If not revived, the fund value is paid out at the end of the 5-year lock-in period, and the policy terminates.

   • Discontinuation after the first 5 years:

     • The policy is converted to a reduced paid-up policy.

     • You can revive the policy within 3 years.

     • Alternatively, you can surrender the policy and receive the fund value immediately. If no option is chosen, the policy continues in a reduced paid-up state until maturity.

Revival

You can revive your policy within a 3-year revival period from the date of the first unpaid premium.

• During the lock-in period: The fund from the Discontinued Policy Fund is reinvested, and the discontinuance charges are added back.

• After the lock-in period: All due premiums are invested, net of charges, to restore the original cover.

• The revival is subject to underwriting approval.

Exclusions

1. Suicide Exclusion:

   If the life assured dies by suicide within 12 months of the policy's commencement or revival, the nominee will receive the Fund Value as on the date of intimation of death.

2. Accidental Benefit Exclusions:

   The in-built accidental benefit does not cover death or disability resulting from:

   • Infection (unless from an external wound).

   • Drug or alcohol abuse.

   • Self-inflicted injury or attempted suicide.

   • Criminal acts.

   • War or civil commotion.

   • Nuclear contamination.

   • Aviation activities (other than as a passenger).

   • Hazardous sports or pastimes.

Conclusion

The SBI Life Smart Elite Plan is a comprehensive ULIP plan that provides financial protection to policyholders and their families. The plan provides coverage in case of death and helps ensure the nominee remains financially secure. The SBI Life Smart Elite Plan is a well-rounded and reliable insurance plan for those looking to safeguard their future, while also providing the potential for wealth creation through a range of market-linked funds and flexible features.