SBI Life Smart Power Plan

Features of SBI Life Smart Power Plan

• ULIP Plan: It is a Unit Linked Insurance Plan with regular premium payment option

• Plan Options: There are 2 protection cover options

  • Level Cover option - The sum assured chosen at inception remains the same throughout the policy term. 

  • Increasing Cover option - The Sum Assured under this option increases by 10% from the 6th policy year and thereafter every 5 years

• Inbuilt Benefit: In-built Accelerated Total & Permanent Disability (TPD) Benefit, providing increased protection. Under this benefit, 100% of the death benefit is paid immediately following a disability due to accident or sickness.

• Fund Options: There are 2 fund options - Trigger Fund Option and Smart Fund Option

  • The Trigger Fund Option automatically allocates the premium in equity and bond funds in the ratio of 80:20, and the ratio is maintained as it automatically adjusts any shortfall or excess

  • The Smart Fund option has 7 funds to choose from, based on your risk appetite, and maximised returns:

    • Equity Fund

    • Top 300 Fund

    • Equity Optimizer Fund

    • Growth Fund

    • Balanced Fund

    • Bond Fund

    • Money Market Fund

Benefits of SBI Life Smart Power Plan

SBI Life Investment Plans enable you to build a prosperous future for yourself and your family. The benefits of SBI Life Smart Power Plan are: 

• Maturity Benefit: The insured will get the total Fund Value on Maturity. The policyholder can receive the maturity amount as lump-sum or in equal installments. 

• Death Benefits: On death, of the life assured, the highest of the following will be paid: 

  • Your Fund Value as on the date of death intimation, or

  • Sum Assured less Applicable Partial Withdrawals (APW), or

  • 105% of the total basic Premiums paid till death

• Settlement Option: Under the Settlement Option, the Fund Value can be withdrawn in five equal instalments over 5 years after the end of the policy term. 

• Tax Benefits: Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act. Income Tax laws are subject to change.

Product Specification:

Policy Details

• Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days in other modes
• Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. A long-term approach helps identify the best SIP investment when comparing such lock-in based investment options. After completion of 5 years, the fund value in the Discontinued Policy Fund as on that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire fund value on the date of surrender is paid without any charges.
• 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.

• Death Claim: At the death of the Life Assured, the death claim will be paid easily in the following manner: 

  • If the policy is assigned (transferring the ownership), the Assignee will receive the death claim.

  • If the policy is not assigned and the Policyholder is not the Life Assured, in that case: 

    • The Policyholder or their legal heir will receive the claim.

  • If the Policyholder is the Life Assured and if there is a valid Nominee (and not a minor):

    • The Nominee will receive the claim.

  • If the Nominee is a Minor, then the Appointee will receive the claim.

  • If no valid nomination exists, the legal heir of the Life Assured will receive the claim.

Inclusions Under SBI Life Smart Power Plan

• Partial Withdrawals: In this investment plan, two free partial withdrawals are allowed every year which should be a minimum of Rs.2000 and maximum of 15% of the Fund Value as on the date of withdrawal.

• Premium Redirection: The option is available from the 2nd policy year.

• Fund Switching: Two free switches are allowed per policy year.

• Change in Fund Option:  Fund options can also be altered from trigger fund to smart fund option and vice-versa under the Portfolio Transfer option.

Additional Features or Riders in SBI Life Smart Power Plan

There is an inbuilt Accelerated Total and Permanent Disability Rider.

Exclusions under SBI Life Smart Power Plan

The benefit paid in case of suicide within 12 months of policy inception is the fund value as on that date.

For the riders, disability due to drug abuse, self-inflicted injury, war or civil commotion, criminal acts, aviation, pre-existing illnesses, HIV infection, etc., is excluded. 

Documents Required for SBI Life Smart Power Plan

The 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.