SBI Life Smart Wealth Builder Plan

What is SBI Life Smart Wealth Builder Plan?

SBI Life Smart Wealth Builder is a non-participating Unit Linked Insurance Plan (ULIP) wherein investors can avail of the dual benefits of life coverage and enhanced investment opportunity. The plan ensures no Policy Administration fees for the first five years for Regular and Limited Premium Payment Term (LPPT) plans, and no Premium Allocation Charge from 11th year onwards. The flexible plan offers investors the choice between various mutual funds under the Smart Wealth Builder plan.

Individuals can consider the following points while selecting the best-suited investment plan:

• Investment risk appetite

• Fund performance history

• Objective

• Investment duration or tenure

Key Features of Smart Wealth Builder Plan

Listed below are the key features of Smart Wealth Builder plan:

1. Premium Payment Term Flexibility

   While buying a new SBI Smart Wealth Builder plan, you can opt for different premium payment modes as mentioned below:

   Premium Payment Type	Premium Payment Term (PPT)	Details
   Single Premium	PPT= Pay once (Policy Term= 5-30 Years)	Pay the total premium amount only once at the time of buying the policy
   Regular Premium	PPT= Policy Term        = 12-30 Years	Pay premiums periodically throughout the whole Policy Term (PT)
   Limited Premium	If Policy Term= 12-14 Years PPT= 7 Years If Policy Term= 15-19 Years PPT= 7/10/12 Years If Policy Term= 20-30 Years PPT= 7/10/12/15 Years	Pay premiums periodically for a few years of the policy term

2. Investment Funds under SBI Wealth Builder Plan

   The insurance company provides its investors with high SBI wealth builder returns via 11 funds for investment.

   

3. Guaranteed Additions

   The SBI Wealth Builder Plan provides the feature of Guaranteed Additions, which further increase the SBI Life Fund Value to buy new units of the Fund.

   • Additions are higher for longer policy terms
   • Percentage of guaranteed addition depends on the policy term and the premium payment method

   This can be up to 125% of your annual premium if you choose a 30-year policy. These additions start as early as the 10th year and are added every 5 years after that, as long as your policy is active.

4. No Policy Administration Charges

   No policy administration fees for the first five years if you choose a regular or limited premium payment plan.

5. No Allocation Charges

   After the 10th year, the insurer stops deducting allocation charges, ensuring more of your money goes into your fund.

6. Investment Flexibility

   You have a choice of 11 different fund options, so you can pick the one that best fits your investment goals.

SBI Wealth Builder Plan Specifications

Benefits of SBI Life Smart Wealth Builder

On buying the SBI Wealth Builder ULIP Plan, the insured will receive the total Fund Value Assured on maturity and death. Moreover, the policyholder gets regular guaranteed returns, tax benefits and many other advantages.

The list of benefits offered by the plan are as follows: 

1. Maturity Benefits

   On survival of the life assured up to maturity, the Fund value shall be payable in lump sum.

   Illustration of the maturity benefits of SBI Smart Wealth Builder is as follows: 

   Premium Payment Type: Regular pay

   Policy Term: 30 years

   Premium Payment Term: 30 Years

   Premium Payment Frequency: Annually

   Investment Fund Type: 100% Equity Fund

   Age at Policy Purchase	35 years
   Premium	Rs. 50,000
   Sum Assured	Rs. 5,00,000
   Fund Value at Maturity (@ 4%)	Rs. 21,74,877
   Fund Value at Maturity (@ 8%)	Rs. 42,95,463

2. Death Benefits Paid in Lump Sum or Instalments

   Upon unfortunate demise of the policyholder, the beneficiary will receive the higher of the following:

   • Your Fund Value as on the date of death intimation, or
   • Basic Sum Assured less Applicable Partial Withdrawals (APW), or
   • 105% of the total Premiums received up to the date of death, less Applicable Partial Withdrawals (APW)

   Note: APW are partial withdrawals, if any, in the last 2 years immediately preceding the death of the Life Assured.

   Upon the unfortunate demise of the policyholder, the beneficiary can receive the payout as a lump sum or in instalments ranging between 2-5 years.

   How to calculate death benefits?

   Here’s an illustration to know the death benefits:

   Policy Term: 30 Years

   Premium Payment Mode: Regular Pay

   Annual Premiums Paid = Rs. 50,000

   Death of Policyholder = At the End of 20th Policy Year

   	Amount
   Death Benefit at a 4% rate	Rs. 12,46,085
   Death Benefit at an 8% rate	Rs. 19,28,918

3. Tax Benefits

   Under the SBI Life -Smart Wealth Builder plan, investors could be eligible for income tax benefits under the current tax laws in India. Since tax laws can change, it is advised to consult a tax advisor to understand the potential tax benefits thoroughly.

   Also read Union Budget 2025 to know the details of tax benefits.

Applicable Charges in SBI Life Smart Wealth Builder Plan

SBI Life Smart Wealth Builder plan returns are paid to the investors after the deduction of certain charges. 

Additional Features of SBI Life Wealth Builder Policy

Here are additional features of the policy:

1. Grace Period

   30 days grace period is allowed for completing the premium payment.

2. 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 of 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.

3. Free Look Period

   If you would not be pleased with the coverage, and terms and conditions of the Smart Wealth Builder policy, SBI life insurance provides the option of cancelling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

4. Policy Discontinuation Fund

   If the policyholder chooses to discontinue the Smart Wealth Builder Plan before the ULIP lock-in period is over, the deposited fund amount is accumulated in the Discontinued Policy Fund.

   The invested amount usually earns returns at a rate of 4% p.a., which is decided by the IRDAI.

5. Fund Switching Flexibility

   SBI Life Smart Wealth Builder Plan allows two free switches per policy year. However, all investors must note the following things:

   • Rs. 100 per switch is charged from the 3rd switch onwards in a policy year

   • No carry-forward of free switches is allowed to the next policy year

   • Minimum amount allowed for fund switching is Rs 5,000

6. Change in Sum Assured

   The Sum Assured can be increased or decreased from the 6th policy year.

7. Facility to Re-direct Premium

   From the 2nd policy year, policyholders can redirect their premium without any charges.

8. Partial Withdrawals

   The lock-in period for a Smart Wealth Builder SBI ULIP Plan is 5 years. After 6th policy year, policyholders can make partial withdrawals on the Fund Value.

   • Policyholders can make one partial withdrawal free of charge per policy year.

   • Rs. 100 has to be paid from the 2nd partial withdrawal onwards.

   • One cannot carry forward the free partial withdrawal to the next policy year.

   • Only 2 partial withdrawals per policy year and 10 partial withdrawals in a full policy term are allowed.

9. Fund Settlement Option

   The nominee can get the Death benefits in equal instalments over 2-5 years after the death of the policyholder.

   • The instalment pay-out can be made annually, half-yearly, quarterly or monthly.

   • Fund switches are offered during this settlement period.

Exclusions

Exclusion in Suicide Cases

The benefit paid in case of suicide within 12 months of policy inception is the fund value at the time of policy claim.

All the charges (except Fund Management Charges) deducted till date of suicidal death intimation to the company are deposited back in the fund value.

Documents Required

Policyholder has to submit the following documents with SBI Life insurance:

• Filled ‘Application form/ proposal form’ of the SBI Smart Wealth Builder ULIP Plan

• Accurate medical history details.

• Address proof

• KYC documents

A medical examination may be required in some cases based on the sum assured and age of the person.

In Conclusion

Beside insurance, Smart Wealth Builder plan also have an investment component that is subject to market risks. This is why all investors must assess their needs and requirements before investing in the plan. SBI Life Smart Wealth Builder is a ULIP scheme that helps its investors reap dual benefits to get better future returns.

FAQ's