SBI Life – Flexi Smart Plus Plan

SBI Life Insurance Company is one of the most reputed life insurance companies in India. SBI Life Insurance Company is headquartered in Mumbai with its presence all over the country. SBI life insurance has more comprehensive insurance portfolio to offer with its customisable products to meet the specific requirement of every individuals and group. The company has tremendously with service excellence, product expertise and wide distribution network.

What are Variable Life Insurance Plans?

Variable life insurance plans are the insurance products that offer guaranteed death benefit along with the accumulation of cash value. Basically, part of premiums paid by you is used for buying life cover and the balance will be invested in bonds and equities through individual policy account. Though the plan offers you to explore various investment options, the returns are declared by the insurance company but not linked to the capital market. That means, the structure of the product is similar to unit-linked insurance plans but the investing pattern is the same as that of traditional endowment plans.

SBI Life’s Flexi Smart Plus Plan

SBI Life’s Flexi Smart Plus is a participating (with profit) variable insurance product that provides both protection and investment under the single plan. It not only helps you protect your family but also helps you fulfil your dreams.

Features of SBI Life’s Flexi Smart Plus Plan

  • The guaranteed minimum bonus of 1% p.a. for the entire term
  • Two protection option – gold option and platinum option
  • Partial withdrawal facility from 6th year onwards
  • Increase or decrease your chosen sum assured during the policy term
  • Increase your chosen policy term

Benefits of SBI Life’s Flexi Smart Plus Plan

  • Flexibility benefit: The plan offers various flexible features
    • The partial withdrawal facility is made available from 6th year onwards. There is one free partial withdrawal allowed in a policy year. In excess of free withdrawal, every partial withdrawal is charged Rs. 100. In a policy year, three partial withdrawals can be made and 10 partial withdrawals are allowed in the policy term. Maximum partial withdrawal is up to the sum of all accrued bonuses:
      • Increase or decrease in sum assured option is made available to meet your changing needs at each policy anniversary date starting from the 6th year.
      • Increase in policy term option is made available on each policy anniversary date starting from the 6th year. The option can be availed only once.
  • Death benefit: The benefits offered on death depending on the policy status is as below
    • If the policy is in-force:
      In case of demise of the policyholder during the term, below benefits are paid out to the beneficiary:
      • For gold option:
        Policy account value or sum assured or 105% of total premium paid till the date of death – whichever is higher
      • For platinum option:
        Policy account value + sum assured or 105% of total premium paid till the date of death – whichever is higher
    • If the policy is discontinued within 5 years:
      Account value of the discontinued policy account at the time of death intimation is paid out to the beneficiary.
    • If the policy is discontinued after the completion of 5 years:
      Policies discontinued and converted into paid-up value status, below benefits are payable
      • For gold option: policy account value or paid-up sum assured – whichever is higher
      • For platinum option: Paid-up sum assured + policy account value is payable.
  • Maturity benefits: On survival of policy term, the policyholder will be entitled to policy account value + terminal bonuses, if any is payable as maturity benefit.
  • Tax benefits:Tax benefits/exemptions are applicable as per the income tax laws under Section 80C and Section 10 (10D) of the Income Tax Act, 1961

Eligibility Criteria for SBI Life’s Flexi Smart Plus Plan

Eligibility conditions Minimum Maximum
Entry age
18 years

60 years
Maturity age 23 years 65 years
Policy term 5 years 30 years
Premium paying term Same as policy year
Premium payment frequency Yearly/half-yearly/quarterly/monthly (in a monthly payment mode, 3 months premium needs to be paid in advance. Renewal premium can only be paid through electronic clearing system and standing instruction mode.)
Premium range (in multiples of Rs. 100)
Yearly
Half-yearly
Quarterly
Monthly


Rs. 50,000
Rs. 30,000
Rs. 20,000
Rs. 9,000



No limit
Sum assured range

Age < 45 years



Age ≥ 45 years


Higher of annualised premium*10 or annualised

premium*0.5*policy term

Higher of annualised premium * 7 or annualised

premium * 0.25* policy term


Annualised


premium*20

Annualised


premium*20

Who should buy SBI Life’s Flexi Smart Plus plan?

SBI Life’s Flexi Smart Plus plan is a suitable option for investors looking for super flexible insurance product along with savings element attached to it. If you are an investor seeking liquidity along with reliable returns, SBI Life’s Flexi Smart Plus plan is an ideal choice.

When should you buy SBI Life’s Flexi Smart Plus plan?

Be it any insurance product, buying early is a wise way. However, SBI Life’s Flexi Smart plus can be bought anytime between 18 years of age to 60 years. You can buy based on your insurance needs and time horizon for financial goals.

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

  • PAN Card is mandatory
  • Identity proof: PAN card/Passport/Driving license/Voter ID card etc.
  • Proof of address: Aadhaar card/ Bank account statement or Utility bills etc
  • Income proof: IT returns/ salary slip/ employer’s certificate etc
  • Age proof: Birth certificate/PAN card/Passport etc

Discontinuance of premium in SBI Life’s Flexi Smart Plus plan

If you discontinue premium payment, you can revive/completely withdraw/ convert it to paid-up policy depending on the policy year in which you discontinue. If you discontinue within the first five years, your policy account value will be disinvested and credited to ‘discontinued policy fund’ after deducting discontinuance charges. You can revive the policy within two years from the date of discontinuance of premium. If revival is not done, the policy is completely withdrawn and the value of discontinuance fund will be paid out on the 1st working day of the 6th policy year. In case, you discontinue premium payments after the policy attains paid-up status i.e. after completion of the first five years of the policy with all premiums paid, then you can continue till maturity without losing the benefits. Mortality charges, fund management charges and administration charges for policy continue to be deducted. Policy account value as on date of maturity will be paid out.

Surrender of SBI Life’s Flexi Smart Plus plan

Surrender of policy can be done anytime during the policy term. However, if the surrender is requested within the first five years, surrender benefits (discontinued policy fund minus charges if any) will be paid only on the 1st business day of the 6th policy year. If the death occurs before that, the discontinued fund value will be paid to the beneficiary. If the policy is surrendered after five years of the policy, your policy account value as on date is paid immediately.

Loan facility in SBI Life’s Flexi Smart Plus plan

There is no loan facility offered in SBI Life’s Flexi Smart Plus plan.

Exclusions in SBI Life’s Flexi Smart Plus plan

If the life assured commits suicide within a year from date of policy inception or from date of revival, the policy shall be void and the benefits under the plan will cease. Your policy account value as on date of death intimation will be paid to the beneficiary.

Conclusion

SBI Life’s Flexi Smart Plus plan is an insurance cum savings plan that offers various flexible features that helps you protect your wealth and to achieve some important milestones of your life along with securing your families financially in the event of an unfortunate situation.


FAQs

Below are the major charges applicable under SBI life’s Flexi Smart Plus policy

Policy administration charges: Policy administration charges for the first year is Rs. 70 per month. The charge is Rs. 50 monthly for second year onwards with an increase at 3% p.a rate every year up to a maximum of Rs. 200 per month.

Fund management charges: Annual fund management charges for policy account is 0.75% p.a of the policy account value. It is 0.50% p.a for the discontinued policy account.

Discontinuance charges:

Year of discontinuation of the policy Discontinuance charges
1 Lower of 6% of (annualised premium or fund value) subject to a maximum of Rs. 6,000
2 Lower of 4% of (annualised premium or fund value) subject to a maximum of Rs. 5,000
3 Lower of 3% of (annualised premium or fund value) subject to a maximum of Rs. 4,000
4 Lower of 2% of (annualised premium or fund value) subject to a maximum of Rs. 2,000
5th year onwards Nil

Premium allocation charges:

Policy year Premium allocation charges (% of premium)
1 9%
2-4 6.5%
5 6%
6th onwards 5%

Mortality charges: Depending on the age of the policyholder and other risk factors, these charges are recovered on a monthly basis.

Partial withdrawal charges: Rs. 100 is charged in excess of any free partial withdrawals.


Sum assured in SBI Life’s Flexi Smart Plus plan can be increased/decreased by changing sum assured multiplier factor.


Option to increase policy term is available at each policy anniversary date starting from 6th policy year for all in-force policies. However, it’s important to notify the company two months before to excise this one-time option.