SBI Life Smart Privilege Plan - All You Need to Know About Benefits & Features

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SBI Life Insurance is one of the most trusted life insurance companies in India. Keeping the requirements of customers in mind, the company has launched “Smart Privilege”- a ULIP product specially designed for the HNIs. This is a unit linked non-participating plan that provides the dual benefits of life coverage along with an opportunity to increase your finances through investments in eight selected funds. The plan also provides unlimited free fund switches and redirection of premiums, throughout the tenure of the policy.

The plan provides numerous advantages and benefits to the insured. Besides this, loyalty additions are also provided under SBI Life Smart Privilege to boost the fund value of the insured. No policy administration charges are levied for the insured ensuring that the insured are getting the maximum benefits.

SBI Life Smart Privilege Plan - Features

  • The plan offers flexibility in premium payment; according to the suitability of the insured he/she can opt to pay premium throughout the tenure of the policy. They can choose the premium payment option for a limited or single period of premium payment and can continue to take advantages of the benefits offered by the policy throughout the tenure of the policy.
  • The policy provides a minimum entry age of 8 years for limited and regular premium payment and for a single premium policy the plan provides a minimum entry age of 13 years. Whereas the maximum entry age of the policy is 55 years.
  • The tenure of the policy for regular and limited premium option is 10-30 years and for single premium policies, the tenure of the policy ranges from 5-30 years.
  • The insured can pay premiums according to their own choice and comfortability in single, annually, quarterly, half-yearly and monthly.
  • According to one’s own choice, he/she can invest in an array of 8 funds which also includes an option for two new funds pure funds and midcap funds.
  • In order to boost the fund value of the insured the plan provides benefits as-
  1. Throughout the entire tenure of the policy, no policy administration charges are deducted.
  2. From the 6th policy year onwards, no premium allocation charges are deducted.
  3. From the 6th policy year onwards, the loyalty additions are provided to the insured, the plan is in force.
  • Anytime during the entire tenure of the policy if the insured wants to change its financial priorities then the plan provides an option of unlimited free switches under which then he/she can change their financial plan with a facility of unlimited free switching.
  • The policy offers liquidity under which the insured can make partial withdrawal throughout the tenure of the tenure of the policy onwards 6th policy year.

For the better understanding of our customers, here, we have summed up the key features of SBI Life Smart Privilege in a tabular form.

Entry Age

Minimum- 8 years for limited/regular premium policies

13 years for single premium policy

Maximum- 55 years

Maturity Age

Minimum- 18 years

Maximum-70 years

Policy Tenure

10-30 years (both Inclusive) for limited/regular premium policies.

5-30 years (both inclusive) for single premium policies

Tenure of premium payment

Limited Premium Paying Tenure-

Minimum- 5 years  Maximum- Policy tenure- 1year

Regular Premium –Same as policy tenure

Single Premium- one-time payment at policy inception.

Premium Modes

Single, yearly, quarterly, half-yearly, monthly.

Sum Assured

For regular/limited premium

For all Ages: Higher of 10 x annualized premium or (Policy tenure x 0.5x AP)

For Single Premium

For ages below 45 years: 1.25 x SP

For ages more than or equal to 45 years:

Minimum: 1.10 x SP Maximum: 1.25 x SP

 

Benefits Offers by the Policy are:-

Maturity Benefit- In case the ensure survives the entire tenure of the policy and the policy is in force then on completion of the policy tenure the fund value is paid to the insured as maturity benefit. Moreover, the beneficiary of the policy can avail the maturity benefit in installments under the settlement option.

Death Benefit- in the case of sudden and unfortunate demise of the insured person during the tenure of the policy the sum assured amount or higher of fund value is payable to the beneficiary of the policy with a minimum of 105% of total premium paid till the date of information of death.

Tax Benefit- According to the application of Income Tax Law in India the insured are eligible for tax benefit on the maturity proceeds and the premium paid under section 80C and 10 D of Income Tax Act.

If as an insured you want to keep protection and investment together, then this plan is profitable. However, while you are planning to zero in on the policy, don’t forget to compare the individual charges and fund values based on term, age and other parameters.

 With all these features and benefits offered by this SBI Life plan is most beneficial for those who want to gain the dual benefits of life coverage as well as an opportunity to invest in the capital markets to achieve their financial goals for future.

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