SBI Life – Smart Champ Insurance Plan

SBI Life Insurance Company is a joint venture between two market giants, State Bank of India, India’s largest multinational bank and BNP Paribas Cardif, a life and property & casualty insurance arm of BNP Paribas, world’s strongest bank. SBI Life Insurance Company offers a comprehensive range of insurance, investment and pension products to cater to the varying needs of individuals and groups. There are products to suit each need and goal with the option to customize. SBI life insurance has gained popularity for excellent services, customizable products and competitive pricing. It has also been awarded as ‘Life Insurance Company of the year’.

What is the child insurance plan?

Child insurance plans are the type of endowment plans that offer both insurance and investment options. Basically, these plans are designed to provide future financial security for the child in the event of eventualities as well as to build lump sum corpus to meet child-specific long-term needs such as higher education and wedding. Child insurance plans can be non-linked or linked to the market. Child insurance plans can also be with profit or without profit plans.

SBI Life’s Smart Champ Insurance Plan

SBI Life’s Smart Champ Insurance is a traditional non-linked, participating life insurance plan that is mainly crafted to meet higher education need of the child. Securing the child’s future against future uncertainties is a primary goal of almost all the parents. SBI Life’s smart champ insurance plan helps you achieve that goal with its amazing and multiple features.

Features of SBI Life’s Smart Champ Insurance Plan

  • The policy offers guaranteed smart benefits in four equal instalments to take care of the higher educational needs of your child
  • Triple protection for child– immediate payment, waiver of premiums and smart benefits
  • The plan is available in two types –single premium and limited pay premium
  • Option to receive discounted value
  • Accidental total and permanent disability benefits

Benefits of SBI Life’s Smart Champ Insurance Plan

  • Death/ATPD (Accidental total and permanent disability) benefits: In an unfortunate event of death or ATPD (accidental total and permanent disability), whichever is earlier, during the policy term the following benefits are payable:
    • Immediate lump sum amount:
      For single premium policies, ‘sum assured on insured event’ is payable. Where, the sum assured on the insured event is higher of basic sum assured or a multiple of single premium.
      Multiple is as below
      Policy term Age at entry < 45 years Age at entry ≥ 45 years
      All 1.25 1.10
    • For Limited pay premium, the sum assured payable is higher of basic sum assured or a multiple of annualised premium or 105% of the total premium paid till the date of an event. Multiple is as below.
      Policy term Age at entry < 45 years Age at entry ≥ 45 years
      8 -9 years 5 5
      10 years and above 10 7
      • Future premiums are waived off. But the policy continues to accrue bonuses if any.
      • Smart benefits instalment due will be payable. If there are terminal bonuses, it will be paid along with the last smart benefit instalment.
  • Survival benefit: Smart benefits are payable in four equal instalments after the child attains 18 years of age until the completion of 21 years of age. 1st instalment on completion of 18 years, 2nd one on completion of 19 years, 3rd one on completion of 20 years and the last one on completion of the 21st year. Each instalment will be 25% of the basic sum assured + 25% of vested simple reversionary bonuses. Terminal bonus, if any will be paid along with the last instalment of smart benefits.
  • Tax benefit: Premium paid for SBI Life’s Smart Champ Insurance can be claimed for tax deductions under Section 80C of the Income Tax Act. Tax exemption can also be availed under Section 10 (10D) for the lump sum benefits received.
  • Option to advance the benefits: For nominees, there is an option to receive the future smart benefit instalments as a lump sum at a discounted value. The discounted rate applicable will be 6.25% per annum. Terminal bonus, if any will be paid along with the lump sum benefit.

Eligibility Criteria for SBI Life’s Smart Champ Insurance Plan

The LICs Cancer Cover health insurance has the following eligibility criteria :

Eligibility conditions Minimum Minimum
Entry age
For life assured:
For a child:

21 years
0 year

50 years
13 year
Maturity age
For life assured:
For a child:
-
-

70 years
21 year
Policy term 21 – child’s entry age
Plan Type 21 – child’s entry age
Premium payment term- Limited premium policies 18 – child’s entry age
Premium payment frequency Single premium/yearly/half-yearly/quarterly/monthly
Premium frequency loading Half-yearly: 51% of the annual premium
Quarterly: 26% of the annual premium
Monthly: 8.5% of the annual premium
Premium range:
1. Single
2. Yearly
3. Half-yearly
4. Quarterly
5. Monthly

Rs. 66,000
Rs. 6,000
Rs. 3,000
Rs. 1,500
Rs. 500



Based on the basic sum assured
Basic sum assured Rs. 1,00,000 (in multiples of Rs. 1,000) Rs. 1 CR

Who should buy SBI Life’s Smart Champ Insurance plan?

SBI Life’s Smart Champ Insurance plan is suitable for investors looking for a comprehensive investment tool to protect their child’s future and save enough for their dreams. Every responsible parent seeking guaranteed benefits should consider this plan to save for the child’s future and to ensure their needs are met at every important milestone of life.

When should you buy SBI Life’s Smart Champ Insurance plan

SBI life’s Smart Insurance plan is recommended to buy as soon as the child is born. Parents can invest in this plan to secure their children’s bright future against any kind of uncertainties. However, SBI Life’s Smart Champ Insurance plan can be bought any time before the child attains 13 years of age. But, buying early helps you reap the smart benefits of the plan to the fullest.

Documents required for buying SBI Life’s Smart Champ Insurance plan

  • PAN card is mandatory
  • Identity proof: PAN card/Aadhaar card/passport/driving license etc.
  • Proof of residence: bank account statement/ Property tax receipt/ utility bill/ passport etc
  • Proof of income: Income Tax return /employer certificate
  • Age proof: PAN card/School certificate/ birth certificate/Passport

Discontinuance of premium in SBI Life’s Smart Champ Insurance plan

Before the policy acquires surrender value, if the premium payment is not paid before the end of grace period of 30 days, the policy will lapse and the benefits will cease. However, revival can be done within 2 years from the date of first unpaid premium. If the premium payment is discontinued, after the policy acquires surrender value policy benefits will continue till maturity with reduced sum assured.

Surrender of SBI Life’s Smart Champ Insurance plan

The policy can be surrendered once it acquires a surrender value. A surrender value may vary depending on the plan type.

  • For single premium policies, the policy will acquire surrender value anytime during the policy term
  • For Limited premium policies, first two years (for 10 PPT) and three years (for PPT 10years and above) full premium has to be paid to attain surrender value.

On surrender, Guaranteed surrender value or non-guaranteed SSV, whichever is higher is payable.

GSV Factors for various policy duration are given below:

Policy year % of basic premium paid
Single premium LPPT policy with less than 10 years PPT LPPT policy with PPT 10 years and more
1 70% 0% 0%
2 70% 30% 0%
3 70% 30% 30%
4-7 90% 50% 50%
8-9 90% 55% 55%
10 90% NA 55%
11-15 90% NA 60%
16-18 90% NA 65%

Surrender during the last 3 years of policy:

Policy year % of basic premium paid
Single premium LPPT policy
3rd last policy yea 90% 65%
2nd last policy year 95% 70%
Last policy year 98% 75%

The surrender value of vested bonus if any will also be added to GSV.

Loan facility in SBI Life’s Smart Champ Insurance plan

In an emergency situation, SBI Life’s Smart Champ Insurance plan allows you to borrow against the policy to a maximum of 90% of the surrender value. The loan interest rate applicable is declared by the company from time to time.

Exclusions in SBI Life’s Smart Champ Insurance plan

If the life assured commits suicide within a year from policy’s inception or from the date of revival, the policy shall be void. The beneficiary will be paid 80% of the total premium paid as on the date of death intimation.
ATPD (Accidental Total and Permanent Disability) benefit exclusions: benefits are not payable if the situation arises due to below events

  • Infection
  • Drug abuse
  • Self-inflicted injury
  • Aviation
  • Nuclear contamination
  • War and civil commotion
  • Criminal acts
  • Hazardous sports

Conclusion

SBI Life’s Smart Champ Insurance is an insurance cum savings product that comes with guaranteed smart benefits. Investing for your child in SBI Life’s Smart Champ Insurance plan ensures your child’s all future needs are met with or without you being around.


FAQs

No. there is no additional rider offered along with this plan


Accidental Total and Permanent Disability is a condition in which life assured becomes incapacitated due to an accident. This condition makes them unable to earn income or get into any profession for rest of the life.


Yes. Large sum assured rebates are available under SBI Life’s Smart Champ Insurance plan. Details are mentioned below.

Basic sum assured Rebate per thousand basic sum assured
Limited premium Single premium
Rs. 1 lakh < basic sum assured < Rs. 2 lakh Nil Nil
Rs. 2 lakh ≤ basic sum assured < Rs. 3 lakh Rs. 3.00 Rs. 6.50
Rs. 3 lakh ≤ basic sum assured < Rs. 5 lakh Rs. 4.50 Rs. 9.50
≥ Rs. 5 lakh Rs. 5.50 Rs. 11.00