SBI Life Smart Wealth Builder Plan

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Introduction/Overview

SBI Life Smart Wealth Builder is a non-participating Unit Linked Plan which aims to provide for every requirement of the policyholder through wealth maximization

Key Features

  • It is a unit linked plan with premium payment options in regular, limited and single mode
  • There is a feature of Guaranteed Additions which further increase the Fund Value
  • The Guaranteed Addition percentage depends up on the term chosen and the premium payment option chosen. It is higher for higher terms
  • The Sum Assured can be increased or decreased from the 6th policy year
  • Under the Settlement Option, the Fund Value can be withdrawn in five equal instalments over 5 years after the end of the policy term
  • 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 and on death, higher of the basic SA net of any partial withdrawals already made from the Fund Value or Fund Value subject to 105% of the premiums paid
  • Guaranteed Additions are paid from the end of the 10th policy year @ 5% and increase every 5 years
  • 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)

7 years

60 / 65 years

Maturity Age (Last Birthday)

-

70 years

Policy Term (PT) in years

5 for Single Pay

10 for limited and Regular Pay

30

Premium Paying Term (PPT) in years

Regular Pay – equal to policy term

Limited Pay:

Policy term 10 yrs. – 5 / 8

Policy Term 15-30 yrs. – 5 / 8 / 10

Premium Paying Frequency

Yearly

Yearly Premium

Single pay –  65,000

Limited pay – 40,000

Regular Pay – 30,000

300,000

Sum Assured

Single Pay – 1.25 * Single Premium for ages <45 yrs. & 1.1* Single premium for ages >45 yrs.

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

Regular Pay – 20* Annual premium

Limited Pay – 15*annual premium

Details About Premium

Illustration for a policy term of 15 years

Age

35 years

45 years

Premium

50,000

50,000

Sum Assured

500,000

500,000

Fund Value @ 4%

871,443

860,664

Fund Value @ 8%

12,06,211

11,91,980

Policy Details

Grace Period: 30 days grace period is allowed for payment of premium

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

  • No Policy Administration charges for the first 5 years in regular and limited premium modes

Exclusions

  • The benefit paid in case of suicide within 12 months of policy inception is the fund value as on that date.

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.