SBI Life – Smart Swadhan Plus

SBI life insurance company, headquartered in Mumbai is a well-known player in the Indian Insurance market. It was started as a joint venture company by State Bank of India, India’s largest multinational bank and BNP Paribas Cardif, insurance wing of global banking giant BNP Paribas bank. SBI Life Insurance Company’s 62.1% of total share capital is held by the State Bank of India and 22% of capital is being held by BNP Paribas Cardif. SBI Life insurance company offers a diverse range of insurance products starting from a pure protection plan to market-linked products for investment needs. With the product diversity and quality services, the company has consistently been recognised and awarded.

What are Term Assurance Plans?

Term insurance or term assurance plans are the simplest and most basic form of insurance that is meant to provide life protection. Term insurance plans are the products that provide larger sum assured at a relatively lesser amount of premium in order to provide financial assistance to insured’s family in the event of his/her untimely demise during the policy period. The basic term insurance plans only pay death benefits and nothing in return on maturity for surviving the policy term. However, there are variants of term insurance plans that offer a return of premium on maturity, if the insured survives the policy period. SBI Life Smart Swadhan Plus plan is also one such variant that offers return of premium on maturity.

SBI Life’s Smart Swadhan Plus

SBI Life’s Smart Swadhan Plus is a non-linked, non-participating term assurance plan with return of premium benefit. This plan helps you protect your family financially against the uncertainties of life. The policy helps you meet your insurance needs at an affordable cost. The policy also rewards you by returning the premium on maturity for surviving the policy term. With various attractive features, SBI Lie’s Smart Swadhan Plus promises to provide comprehensive financial protection during eventualities.

Features of SBI Life’s Smart Swadhan Plus

  • Twin benefit of protection and return of premium
  • Flexibility to choose the premium payment type –single premium, limited premium or regular premium
  • Choose the term as per your need
  • High sum assured rebate

Benefits of SBI Life’s Smart Swadhan Plus

  • Life cover benefit : In the unfortunate event of the death of the life assured, sum assured on death will be payable to the beneficiary.
    • Sum assured on death :
      • For single premium policies: Higher of basic sum assured or 1.25 times of single premium or maturity benefit.
      • For limited premium paying term/ Regular premium policies: Higher of basic sum assured or 10 times of annualized premium or maturity benefit or 105% of all premiums paid till the date of death.
  • Maturity benefit : If the policyholder survives the policy period/term, 100% of the total premiums paid during the policy tenure, shall be paid in a lump sum.
  • Tax benefit : Premiums paid for the SBI life’s Smart Swadhan Plus policy can be claimed for tax deduction under Section 80C of the Income Tax Act, 1961. The lump sum benefit paid also is exempted from income tax under Section 10 (10D) of the Income Tax Act.

Eligibility Criteria for SBI Life’s Smart Swadhan Plus

Eligibility conditions Minimum Maximum
Entry age 18 years 65 years
Maturity age - 75 years
Plan types Single premium, regular premium, limited premium
Policy term 10 years 30 years
Premium paying term
Single premium plan
Limited premium plan
Regular premium plan

One-time payment
5 years, 10 years and 15 years
Same as the policy term
Premium payment frequency Single/Yearly/Half-yearly/Quarterly/Monthly (for the monthly mode of
premium payment, three months premium needs to be paid in
advance. Renewal premium can be paid only through electronic
clearing system and standing instructions
Premium frequency loading Half-yearly : 52% of annual premium
Quarterly : 26.5% of annual premium
Monthly : 8.9% of annual premium
Premium range
Single
Yearly
Half-yearly
Quarterly
Monthly

Rs. 21,000
Rs. 2,300
Rs. 1,200
Rs. 650
Rs. 250



No limit
Sum assured range (in multiples of Rs. 1000) Rs. 5,00,000 No limit

Availability of policy term for chosen premium payment option

Premium payment option Policy term available
Single premium 10-30 years
Limited premium payment term – 5 years 10-30 years
Limited premium payment term – 10 years 15-30 years
Limited premium payment term – 15 years 20-30 years
Regular premium 10-30 years

Premium illustration in SBI Life’s Smart Swadhan Plus plan

Below are the indicative premium rates for 30 year old individual depending on the plan option.

Sum assured : Rs. 50,00,000
Policy term : 30 years

Plan option Premium (in Rs.)
Single premium 3,32,300
Limited premium payment term – 5 years 78,150
Limited premium payment term – 10 years 43,750
Limited premium payment term – 15 years 34,350
Regular premium 28,400

Who should buy SBI Life’s Smart Swadhan Plus plan

SBI Life’s Smart Swadhan Plus plan suitable for any individual seeking complete financial protection for family against future uncertainties. If you are looking for a plan that pays back whatever you have paid at the end of maturity for surviving the term.

When should you buy SBI Life’s Smart Swadhan Plus plan

SBI Life’s Smart Swadhan Plus plan can be bought anytime from 18 years of age to 65 years. However, it’s always recommended to buy term insurance cover when you are young and healthy to get the maximum possible coverage at an affordable cost.

Documents required for buying SBI Life’s Smart Swadhan Plus plan

  • PAN card is mandatory
  • Age proof : PAN card/Passport / driving license /Birth certificate etc.
  • Identity proof : PAN card/ Aadhaar card / Voter’s ID card / driving license/ Passport etc.
  • Address proof : Electricity bill/ bank account statement/telephone bill/Passport etc.
  • Income proof : IT return/ employer certificate/salary slip

Surrender of SBI Life’s Smart Swadhan Plus plan

The policy can be surrendered at anytime surrendered anytime during the policy term. For Limited premium and regular premium policies: The policy will acquire paid-upacquire a paid-up value or surrender value only after paying two years of the premium for limited premium payment term -5 years. The policy will acquire paid-up value after three years full premium payment for limited premium payment term [1] – 10 years and 15 years and also for Regular premium policies. If the surrender is made after policy attaining paid-up value, the reduced sum assured or paid-up sum assured will be paid on death. Likewise, reduced benefits will be paid on maturity.

When you surrender in-force/paid-up policies, the higher of the guaranteed surrender value (GSV) or Special surrender value (SSV) will be paid. GSV will be equal to premiums paid multiplied by GSV factors.

GSV factors for various plans and policy period is given below :

Policy year % of premiums paid
Single premium Limited premium-5 years Limited premium-10 years Limited premium-15 years Regular premium
1 70% 0% 0% 0% 0%
2 70% 30% 0% 0% 0%
3 70% 40% 35% 33% 30%
4-6 90% 60% 55% 53% 50%
7 90% 65% 60% 58% 55%
8th years to 3rd last policy year 90% 75% 70% 68% 65%
Last two policy years 90% 90% 85% 83% 78%

Loan facility in SBI Life’s Smart Swadhan Plus plan

No loan facility is offered under SBI Life’s Smart Swadhan Plus plan

Exclusions in SBI Life’s Smart Swadhan Plus plan

Suicide Exclusion : If the life assured, whether sane or insane, commits suicide within one year of policy commencement or within a year from the date of policy revival, then no benefits under the plan will be payable as policy is considered void. However, for in-force policies, 80% of the total premium paid will be paid to the nominee.

Conclusion

SBI Life’s Smart Swadhan Plus plan is a term insurance plan with return of premium option on maturity that offers coverage at a reasonable cost. With many premium payment options, flexibility and rebates on large sum assured SBI Life’s Smart Swadhan Plus plan can be a good option to financially secure your family’s future.


FAQs

If you have not paid the premium within the premium payment due date, then you are given 30 days grace period from the date of premium due date. The policy will stay in force during the grace period. If you do not pay a premium even within the grace period, then the policy will get lapsed. However, a lapsed policy can be revived within two years from the date of first unpaid premium. Revival will be subjected to satisfactory proof of insurability.


Once the policy acquires paid-up value status, death benefits and maturity benefits are reduced proportionately. Here are the benefits paid out for paid-up value policies.

Death benefit : Paid-up sum assured on death = Basic sum assured X number of premiums paid/total number of premiums payable

Maturity benefit : 100% of total premiums paid


Yes. Below are the rebate offered on availing large sum assured.

Basic sum assured (in Rs.) Rebates on premium per thousand sum assured
Single premium Limited premium term – 5 years Limited premium term -10 years Limited premium term -15 years Regular premium
≥ 7.5 lakhs < 10 lakhs 2.00 0.45 0.40 0.30 0.30
≥ 10 lakhs < 15 lakhs 4.00 1.10 0.80 0.60 0.60
≥ 15 lakhs < 25 lakhs 6.00 1.75 1.20 1.00 0.90
≥ 25 lakhs < 35 lakhs 7.50 2.20 1.50 1.25 1.20
≥ 35 lakhs < 50 lakhs 8.25 2.40 1.70 1.40 1.30
≥ 50 lakhs 8.90 2.60 1.85 1.50 1.40