SBI Life Smart Scholar Plan

What is SBI Life Smart Scholar Plus?

The Smart Scholar Plus is a Unit Linked Child cum investment plan specifically created for parents who have a child aged between 0 and 17 years. It offers flexibility in premium payments, allowing you to choose between a one-time payment (Single Premium), payments for a limited period (Limited Pay), or regular payments over the policy term (Regular Pay). The plan enables you to invest your money in ten varied fund options based on your choice and risk appetite. At the end of the policy term, the accumulated fund value can be utilized to meet your child's significant life goals, such as higher education, marriage, or financial security. Additionally, it provides liquidity through partial withdrawals to cover unplanned expenses.

Features of SBI Life Smart Scholar Plus

The Smart Scholar Plus plan comes with several key features designed to provide comprehensive protection and wealth creation opportunities:

• Dual Protection: It offers protection for your child's future in case you are not around, including a lumpsum benefit and an inbuilt Premium Payor Waiver Benefit to ensure the policy continues.

• Accident Benefit: This is an integral part of the plan, providing benefits for Accidental Death and Accidental Total and Permanent Disability (Accidental TPD).

• Loyalty Additions: The plan includes regular Loyalty Additions, which are additional allocations of units to your investment, providing periodic boosts for in-force policies.

• Enhanced Wealth Creation: You have the opportunity to enhance your wealth through a choice of ten different fund options.

• Twin Benefit: It combines insurance cover with market-linked returns.

• Flexible Options: The plan offers flexible options to meet your changing requirements, including partial withdrawals, switching between funds, and premium redirection.

• Lock-in Period: Unit Linked Insurance Plans like Smart Scholar Plus do not offer any liquidity during the first five years of the contract, meaning you cannot surrender or withdraw monies completely or partially until the end of the fifth year.

Eligibility criteria for the SBI Life - Smart Scholar Plus Plan 

Special Condition: Subject to the condition that at maturity, the age of the child should be 18 years or more (last birthday).

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Benefits of SBI Life Smart Scholar Plus

• This child plan offers a range of benefits to ensure the financial well-being of your child:

• Death Benefit (in case of unfortunate death of the Life Assured):

  • If the policy is in-force, a lump sum benefit is paid, which is the higher of the Sum Assured or 105% of the total premiums paid up to the date of death.

  • Crucially, all future premiums due are waived (under the inbuilt Premium Payor Waiver Benefit), and the policy continues to be in-force. No further mortality, Accident Benefit, or PPWB charges are deducted, and the Fund Value will be paid at maturity.

  • In the case of a reduced paid-up policy after the lock-in period, the death benefit payable will be the higher of the Paid-up Sum Assured or 105% of Total Premiums Paid up to the date of death.

• Accidental Death or Accidental Total and Permanent Disability (Accidental TPD) Benefit (of Life Assured):

  • If the policy is in-force, an additional benefit equal to the Accident Benefit Sum Assured is paid.

  • The Accident Benefit Sum Assured is equal to the Sum Assured under the product, subject to an overall cap of ₹50 lacs per life.

  • For Accidental Death, the amount is paid as a lump sum.

  • For Accidental TPD, the Accident Sum Assured is paid in 10 equal annual installments.

  • This benefit is payable only once, for either death or disability, whichever occurs first. If a claim for Accidental TPD is accepted, the Accident Benefit ceases, and no related charges are deducted, but the policy continues with life cover, and premiums must still be paid.

  • This benefit is not available for Single Premium policies or reduced paid-up policies. However, for reduced paid-up policies, the Accident Benefit Sum Assured will be equal to the paid-up sum assured if claimed.

• Death of the Child: No sum assured is payable in the event of the child's death. The Life Assured can choose to continue or terminate the policy.

• Death of Both Life Assured and Child: If both the Life Assured and the child die during the policy term, the policy automatically terminates, and all due benefits along with the Fund Value are paid to the nominee.

• Maturity Benefit: On completion of the policy term, the fund value is paid as a lump sum to the beneficiary. The beneficiary will be the policyholder if they survive, or the child if the life assured died during the policy term.

• Loyalty Additions:

  • Loyalty units are added to in-force policies upon completing specific durations, providing periodic boosts to investments.

  • These additions depend on the policy term and are calculated as 1% of the average fund value over the first day of the last 24 policy months at the relevant policy year-end.

  • Loyalty additions are offered for all policy terms, regardless of premium frequency, and continue even if the policy continues after the death of the life assured. Once allocated, they remain attached for the remaining policy term.

  • They are not available for reduced paid-up policies but are credited on revival if all due premiums have been paid.

• Flexible Options:

  • Switching Option: You can switch your investments among the 10 available funds to align with your changing investment needs. A minimum switch amount of ₹5,000 applies. You get two free switches per policy year, with a charge of ₹100 for each subsequent switch. Unused free switches cannot be carried forward.

  • Premium Redirection Option: From the 2nd policy year onwards, you can alter the allocation percentages for future premiums. One free premium redirection request is allowed per policy year, with a charge of ₹100 for additional requests. This affects future premiums only and does not impact existing units.

  • Partial Withdrawals: Available from the 6th policy year onwards, provided premiums for 5 complete policy years have been paid. You get one free partial withdrawal per policy year, with a charge of ₹100 for additional withdrawals. A maximum of 2 partial withdrawals are allowed in one policy year, and up to 5 for policy terms of 10 years or less, or 10 for terms over 10 years. The minimum withdrawal amount is ₹5,000, and the maximum is up to 15% of the fund value. Withdrawals are not allowed if the fund value falls below 50% of the total premiums paid.

Riders Under SBI Life Smart Scholar Plan

The SBI Life Smart Scholar Plus plan does not offer separate riders. Instead, it includes in-built additional benefits: the Accident Benefit and the Premium Payor Waiver Benefit (PPWB). These benefits are an integral part of the plan for Limited and Regular Pay policies and are not available with Single Pay policies.

Additional Details of SBI Life Smart Scholar Plus

• Fund Options: You can invest in any one or a combination of ten diverse funds with varying risk profiles, including Equity Fund, Top 300 Fund, Equity Optimiser Fund, Growth Fund, Balanced Fund, Bond Fund, Money Market Fund, Bond Optimiser Fund, Pure Fund, and Blue Chip Fund.

• 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. It is advisable to consult your tax advisor for details.

• Free Look Period: You have a 30-day free look period from the date of receiving the policy document to review its terms and conditions. If you disagree, you can return the policy for cancellation and receive a refund, subject to certain deductions (e.g., proportionate charges, stamp duty, medical expenses).

• Grace Period: A grace period of 30 days is allowed for Yearly, Half-yearly, and Quarterly premium payment frequencies, and 15 days for monthly payments. The policy remains in force during this period, and applicable charges continue to be deducted.

• Discontinuance of Policy: Policy discontinuance occurs due to surrender or non-payment of premium before the grace period expires.

  • During Lock-in Period (first 5 years): The fund value (after discontinuance charges) is credited to a Discontinued Policy Fund, and risk cover ceases. You have options to revive the policy within 3 years or surrender. If no option is exercised, the policy continues without risk cover, and the fund value is paid at the end of the lock-in period (6th policy year).

  • After Lock-in Period (after 5 years): The policy is converted into a reduced paid-up policy. All charges (except PPWB) continue to be deducted, but mortality and Accident Benefit charges are based on the reduced paid-up sum assured. You can still revive the policy within 3 years or completely withdraw.

• Revival: You can revive your policy within 3 consecutive years from the date of the first unpaid premium by paying all due premiums. Revival is subject to underwriting acceptance and is applicable for Regular and Limited Pay policies only.

• Surrender: You can surrender your policy at any time, but once surrendered, it cannot be revived.

  • If surrendered during the first 5 policy years, the fund value (after discontinuance charges) is transferred to the 'Discontinued Policy Fund', earning a minimum guaranteed interest rate of 4% p.a. Life cover and in-built benefits cease, and the surrender value is paid on the 1st working day of the 6th policy year.

  • If surrendered after the 5th policy year, the fund value is paid immediately, and the policy terminates.

Exclusions Under SBI Life Smart Scholar Plus

• Suicide Exclusion: If the Life Assured dies due to suicide within 12 months from the policy commencement or revival date, the nominee or beneficiary will receive the fund value as available on the date of intimation of death. Any charges other than FMC recovered after the death date will be added back to the fund value.

• Exclusions for Accident Benefit: Death or total and permanent disability arising from or due to the following events is not covered:

  • Infection (unless caused by an external visible wound accidentally sustained).

  • Life Assured under the influence of Alcohol or solvent abuse, or use of drugs (except under direction of a registered medical practitioner).

  • Intentional self-inflicted injury, including injuries from attempted suicide.

  • Life Assured's involvement in criminal and/or unlawful acts with criminal or unlawful intent.

  • War, invasion, hostilities, civil war, rebellion, revolution, act of foreign enemy, armed or unarmed truce, mutiny, rebellion, strikes, or participation in a riot or civil commotion.

  • Taking part in any naval, military, or air force operation during peacetime or during service in any police, paramilitary, or similar organization.

  • The radioactive, explosive, or hazardous nature of nuclear fuel materials or property contaminated by them, or accidents arising from such nature.

  • Life Assured's participation in any flying activity other than as a passenger in a commercially licensed aircraft.

  • Engaging in or taking part in professional sport(s) or any hazardous pursuits, including but not limited to, diving or riding or any kind of race; underwater activities involving the use of breathing apparatus or not; martial arts; hunting; mountaineering; parachuting; bungee-jumping.