SBI Life Smart Power Plan

What is SBI Life Smart Power Plan

SBI Life Smart Power Plan is a ULIP which allows investors to enjoy market-linked returns through investments in the market while financially protecting their family in case of a mishap. It ensures that your family is financially secure irrespective of your presence through its death benefit feature. It also makes sure that your investments match your goals and risk tolerance by providing you a variety of funds to invest in.

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 10 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

    • Bond Optimiser Fund

    • Pure Fund

    • Corporate bond 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• Settlement Option: Under the Settlement Option, the Fund Value can be withdrawn in five equal instalments over 5 years after the end of the policy term.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 of SBI Life Smart Power Plan

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. In total, you can make a maximum of 10 withdrawals for a 10-year policy and 15 withdrawals throughout the term of a 15-year policy.

• 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.

Riders Offered under SBI Life Smart Power Plan

Accelerated Total and Permanent Disability Rider: Unlike traditional riders, the TPD benefit comes as an inbuilt feature of the SBI Life Smart Power Plan. This benefit provides the policyholder with 100% of the death benefit payment if the life assured is diagnosed with a qualifying total and permanent disability due to accident or sickness.

Exclusions under SBI Life Smart Power Plan

Suicide exclusion: If the policyholder commits suicide within 12 months of commencement of the policy, the full sum assured will not be paid to the nominee. Rather, the nominee will only receive the total fund value. Any charges deducted from the fund after the death of the life assured will be added back to the total fund value before payment.

TDP Exclusions: Disability benefits will not be provided to the policyholder if the disability occurs due to the following reasons:

• Self-harm and substance abuse
• Unlawful acts
• War and civil unrest
• Nuclear risk
• Aviation
• Hazardous activities
• Military service
• Pre-existing medical condition.

Conclusion

The SBI Life Smart Power Plan is a comprehensive ULIP which provides policyholders with comprehensible coverage through its level and increasing cover options. It also caters to different types of investors by providing them with the automated trigger fund options and the manual smart funds option. While a ULIP plan such as this can help you build a healthy corpus, the increasing cost of life might require investments in a diverse range of financial instruments. You can read about the best investment plans and choose plans as per your financial goals for the near and far future.