SBI Life Smart Scholar Plan

What is the SBI Life Smart Scholar Plan?

SBI Life Smart Scholar Plus is a Unit Linked Insurance Plan (ULIP) for parents with kids between the ages of 0 and 17. You only have to pay premiums for a short time, but the policy benefits last until your child becomes 18.

You can put your money into any of the nine funds, depending on how much risk you're willing to take. When the fund matures, you can utilise the money for your child's college tuition, marriage, or to make sure they are financially secure. The plan also lets you take money out to assist you in dealing with unexpected costs.

Features of SBI Life Smart Scholar Plan

Here are the main characteristics of the SBI Life Smart Scholar Plus Plan:

• Child Protection with Continuity: This investment plan provides a lump sum benefit with an integrated premium payor waiver that keeps the policy alive even if you're not around.
• Built-in Accident Coverage: Includes payments for accidental death and total and permanent disability (TPD).
• Market-linked Growth: Put money into one of nine funds that give you both life insurance and investment profits.
• Loyalty Addition Benefits: Adding extra units at regular intervals helps long-term investments grow.
• Flexibility and Liquidity: Provides features that can be changed, and the ability to make partial withdrawals to meet changing or urgent needs.

Eligibility Criteria for the SBI Life Smart Scholar Plan

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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*Standard T & C Apply

Benefits of SBI Life Smart Scholar Plan

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

1. Death Benefit

   If the Life Assured dies during the policy term while the policy is active, a lump sum equal to the higher of the Sum Assured or 105% of total premiums paid is paid, all future premiums are waived, the policy continues without charges, and the fund value is paid at maturity.

   • Death of the Child: The Life Assured does not obtain a Sum Assured if the child dies while the policy is still in existence. The policy regulations say that they can either keep it going or discontinue it.
   • Death of Both Life Assured and Child: If both the Life Assured and the child die during the policy period, the insurance expires automatically. The candidate gets all the benefits they are owed, plus the value of the fund.

2. Maturity Benefit

   At the end of the policy, the Fund Value is paid in a lump sum. If the life assured is alive, they get it. Otherwise, the child receives it.

3. Accident Benefit

   This benefit gives extra protection for accidental death or permanent disability. The accident cover equals the Sum Assured, up to ₹50 lakh. It covers sudden accidents causing bodily injury, not sickness. If permanent disability or death happens within 180 days of the accident, the benefit is paid, even if it occurs after the policy ends, as long as the accident happened while the policy was active.

4. Premium Payor Waiver Benefit (PPWB)

   If the life assured passes away, SBI Life pays all future premiums. When the child turns 18, they get the Fund Value to help with their money needs.

5. Switching Option:

   You may transfer your money between the 10 funds at any moment during the policy term, depending on what you require. You can only switch for at least ₹5,000. You can switch two times in a policy year for free. After that, every switch costs ₹100. You can't carry over free switches that you don't use. You can make as many switches as you want in a year or during the policy's term.

6. Premium Redirection Option:

   After the second year of your policy, you can adjust how your future premiums are spread out between funds. You can change your premium once a year for free. Any further requests will cost ₹100. You can't use free redirections that you don't use.

7. Partial Withdrawals:

   After the lock-in period of five years, you can make partial withdrawals commencing in the sixth policy year. You can take out one free withdrawal each year. Each further withdrawal costs ₹100. You can withdraw money twice a year.

8. Tax Benefit:

   According to current income tax regulations, you may be able to get income tax benefits under Section 80C and Section 10(10D). These benefits may change with time.

Riders Under SBI Life Smart Scholar Plan

There are no separate riders with the SBI Life Smart Scholar Plus plan. Instead, it comes with built-in extra benefits, including the Accident Benefit and the Premium Payor Waiver Benefit (PPWB). These benefits are an important aspect of the plan for Limited and Regular Pay policies, but they are not available with Single Pay policies.

Additional Policy Details of SBI Life Smart Scholar Plan

• Free Look Period: You get 30 days from receiving the policy document to review its terms. If you are not satisfied and no claim is made, you can return the policy for cancellation by stating the reason.
• Grace Period: You have 30 days to pay your premiums for the year, half-year, or quarter. There is a 15-day grace period for monthly payments. The policy is still in effect throughout this time. If someone dies during the grace period, the death benefit is paid under the provisions of the policy.
• Discontinuance of Policy (Within Lock-in Period): If premiums aren't paid within the grace period within the first five years, the policy goes into a discontinuation fund. You can bring the policy back to life within three years of the first missed payment. After the lock-in time ends, the fund value is paid out if it is not resurrected. The nominee gets the money if the person dies before it is paid out.
• Discontinuance of Policy (After Lock-in Period): If the policy is stopped after five years, it becomes a reduced paid-up policy. The amount of the policy is lower than the premiums paid. The accident benefit also goes down by the same amount. You can bring the policy back to life within three years. If not revived, lower benefits will apply until maturity or an earlier payout.
• Complete Withdrawal: You can give up the policy at any time. The fund value is paid on the surrender date after the lock-in term ends or right away if the lock-in period has already ended.

Exclusions Under SBI Life Smart Scholar Plan

1. Suicide Exclusion Criteria:

   If death occurs due to suicide within 12 months from policy start or revival, only the fund value available on the date of death intimation is paid to the nominee.

2. Exclusions for Death or Total and Permanent Disability:

   • Death or disability due to any infection is not covered, except if the infection is caused by an accidental external wound.
   • Death or disability caused by alcohol, solvent abuse, or drug use is not covered, unless taken as prescribed by a registered doctor.
   • Intentional self-inflicted injuries or injuries due to attempted suicide are not covered.
   • Death or disability occurring while involved in criminal or illegal activities is not covered.
   • Events related to war, invasion, civil war, rebellion, riots, strikes, or civil unrest are not covered.
   • Participation in military, police, paramilitary, or similar forces during service is not covered.
   • Death or disability caused by nuclear radiation, nuclear accidents, or radioactive contamination is not covered.
   • Injuries or death during flying activities are not covered, except when travelling as a passenger in a licensed commercial aircraft.
   • Death or disability caused by hazardous sports or adventure activities such as racing, diving, mountaineering, parachuting, martial arts, hunting, or bungee jumping is not covered.