SBI Life Smart Scholar Plan

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Introduction/Overview

SBI Life Smart Scholar is a non-participating Unit Linked Child Plan which is designed for the benefit of the child where the child’s future is secured even in the absence of the parent

Key Features

  • It is a unit linked plan with premium payment options in limited mode
  • The plan is for the benefit of the child where the parent is the life insured
  • There is a feature of Loyalty Additions which further increase the Fund Value and are paid even in case the life insured is dead
  • The following 7 funds are available for investment:
  1. Equity Fund
  2. Top 300 Fund
  3. Equity Optimizer Fund
  4. Growth Fund
  5. Balanced Fund
  6. Bond Fund
  7. Money Market Fund

Benefits

  • The insured will get the total Fund Value on Maturity
  • In case of death of the life assured, the basic SA subject to a minimum of 105% of all premiums paid till death is paid. Further premiums are waived and are paid for by the company. On Maturity, the Fund Value is again paid
  • The policyholder can choose to avail the maturity benefit over 5 years through the Settlement Option
  • Loyalty Additions are paid after specified intervals and are calculated as 1% * average fund value on the first day over the last 24 months
  • Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

Parent - 18 years

Child – 0 years

Parent – 57 years

Child – 17 years

Maturity Age (Last Birthday)

Parent – NA

Child – 18 years

Parent – 65 years

Child – 25 years

Policy Term (PT) in years

8

25

Premium Paying Term (PPT) in years

Single pay

Or

5-25 years

Premium Paying Frequency

Yearly, half-yearly, quarterly, monthly

Yearly Premium

Single pay –  75,000

PPT >=8 yrs.:

Yearly – 24,000

Half-yearly – 16,000

Quarterly – 10,000

Monthly – 4000

PPT 5-7 years:

Yearly – 50,000

Half-yearly – 25,000

Quarterly – 12,500

Monthly - 4500

No limit

Sum Assured

Single Pay – 1.25 * Single Premium

Regular Pay – higher of (10*annual premium) or (0.5*term*annual premium) for ages <45

&

Higher of (7*annual Premium) or (0.25*term*annual premium) for ages>45 yrs.

Single Pay – 35Single premium for ages<45 yrs. & 1.25* Single premium for ages >45 yrs.

Regular Pay – 20* Annual premium

 

Details About Premium

Illustration for a policy term and PPT of 20 years for a parent aged 30 years

Premium

50,000

100,000

Sum Assured

5 lakhs

10 lakhs

Fund Value @ 6%

15,58,343

31,38,539

Fund Value @ 10%

24,75,781

49,85,760

Policy Details

Grace Period: 30 days grace period is allowed for payment of premium in every mode except monthly mode where 15 days’ grace period is allowed

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. 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.

Inclusions

  • One free partial withdrawal is allowed every year which should be a minimum of Rs.5000 and maximum of 15% of the Fund Value as on the date of withdrawal
  • Premium redirection is available from the 2nd policy year
  • 2 free switches are allowed per policy year

Additional Features or Riders

  • There is an inbuilt Premium Payor Waiver Rider which pays premium in the absence of the life insured
  • There is also an inbuilt Accidental benefit rider including total and permanent disability where a lump sum amount is paid on accidental death or disability

Exclusions

  • The benefit paid in case of suicide within 12 months of policy inception is the fund value as on that date.
  • For the Accidental Death Benefit Rider, accidents due to infection, drug abuse, self-inflicted injury, war or civil commotion, criminal acts, aviation, etc. are excluded

Documents Required

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.