SBI Life – Smart Bachat Plan

SBI Life Insurance Company is one of the best life insurance companies in India that was founded in the year 2001. Unrivalled strength of India’s banking giant, State bank of India and the strong global presence of French multinational company, BNP Paribas Cardif has added to the growing success of SBI Life Insurance Company. SBI Life Insurance Company offers a wide range of insurance products starting from pure protection plans, savings plan, pension plans and to some market-linked investment products to cater to the requirement of every individual and group investor.

What are the endowment plans?

Endowment plans are specialized insurance products that provide you with an opportunity to save regularly for your long-term goals along with providing protection to your family during eventualities. Endowment plans can be with profit or without profit plans. Endowment plans can be market-linked or non-linked plans. Generally, non-linked savings plans are referred to as endowment plans. In simple terms, endowment insurance plans provide you maturity benefit along with death benefits.

Endowment policies offer you an excellent opportunity to save through an insurance policy. If you want to know more about endowment policies in India, you can visit this page. To buy an endowment policy in a few simple steps, you can click here.

SBI Life – Smart Bachat Plan

SBI life’s Smart Bachat is a non-linked, participating endowment plan. The plan not only safeguards your family financially in an unfortunate event but also provides you with an opportunity to save wisely for your long-term goals like retirement, children education and marriage etc. The highlight of the plan is the premium payment term is limited. The plan comes with various features that can help you meet your investment needs effectively.

SBI is a leading insurance provider in India for many years. It has a variety of plans to cater to your life insurance needs You can browse other life insurance policies by SBI here.

Features of SBI Life’s Smart Bachat Plan

  • Two plan options to meet your insurance needs
    • Option A: endowment option
    • Option B: Endowment option + in-built accidental death and total permanent disability rider
  • Choose your premium payment term and policy term
  • Simple revisionary bonuses throughout the policy term
  • In-built premium waiver benefit in option B
  • Protection cover throughout the policy term

Benefits of SBI Life’s Smart Bachat Plan

  • Flexibility benefit: Plan offers many flexible features.

    Flexibility to choose from two different plan options for life cove

    • Option A: Endowment option

      This option offers life cover + simple revisionary bonusesthroughout the policy term.

    • Option B: Endowment option with Accidental death and total permanent disability (AD&TPD) benefit

      This option offers the additional benefit of cover paid out in case of accidental death and total permanent disability to the policyholder during the policy term along with the benefits mentioned under option A.

  • Death benefit: In the event of policyholder’s death during the policy term, the beneficiaryis entitled to receive a higher of the below as benefits.
    • The sum assured + vested simple reversionary bonuses + terminal bonus if any
    • 105% of all the premiums paid till the date of death.
  • Maturity benefit: If the policyholder survives till the end of thepolicy term, the basic sum assured + vested simple reversionary bonuses + terminal bonuses, if any are paid as maturity benefit.
  • In-built AD&TPD benefits for Option B
    • AD& TPD benefits payable under option B is lower of the below:
      • Basic sum assured
      • Rs. 50 lakhs subjected to the condition that the total sum assured under this benefit on all your SBI Life policies does not exceed Rs.50 lakhs.
    • In case death occurs due to an accident during the policy term
      • AD&TPD benefits + death benefits as per the basic plan is payable.
    • In case the life assured suffers a total permanent disability due to an accidentduring the policy term,
      • AD&TPD benefit is payable in a lump sum
      • All the future premiums would be waived off
      • The policy continues to stay in force till surrender, death or on maturity, whichever is earlier.
  • Tax benefits: Premiums that you pay towards SBI life’s Smart Bachat can be claimed for tax deduction under Section 80C of the Income Tax Act, 1961. And, benefits paid out are tax-free under Section 10 (10D) of the IT Act.

SBI life’s Smart Bachat Plan allows the policyholders to avail a number of benefits while also helping them save money through investment in insurance. If you too wish to avail these benefits at attractive premium rates, click through the link below to compare and finalize the most suitable insurance policy for yourself!

Eligibility Criteria for SBI Life’s Smart Bachat Plan

Eligibility conditions Minimum Maximum
Entry age
For Endowment option
For Endowment with AD&TPD benefit
8 years
18 years
50 years
Maturity age 65 years
Sum assured (in multiples of Rs. 1,000) Rs. 1,00,000 No limit
Premium payment frequency Yearly/Half-yearly/Quarterly/Monthly (for monthly mode, 3 months premium has to be paid in advance. Premium payment can be made through ECS and Standing instructions only
Premium frequency loading Half-yearly: 51% of the annual premium
Quarterly: 26% of the annual premium
Monthly: 8.5% of the annual premium
Plan type Limited premium Policy
Premium range
Rs. 5100
Rs. 2600
Rs. 1350
Rs. 450
No limit

Take a look at corresponding policy term for premium payment term chosen

Premium payment term (in years) Policy term (in years)
5 10-25
7 10-25
10 15-25
15 20-25

If you’re not eligible for SBI life’s Smart Bachat Plan and wish to explore similar insurance policies that are better suited to your needs and eligibility criteria, visit this page to ensure all your insurance needs are taken care of.

Premium illustration for SBI Life’s Smart Bachat plan

Below are the sample premium rates for 30-year-old male/female life seeking INR. 5,00,000 cover for 20 years based on options chosen.

Plan option Premium payment term (in years) Policy term (in years) Sum assured (in INR.) Yearly premium exclusive of taxes (in INR.)
Option A – Endowment option 5 20 5,00,000 68,285
Option B – Endowment with AD&TPD benefit 5 20 5,00,000 + 5,00,000 (AD&TPD benefit) 69,285

Who should buy SBI Life’s Smart Bachat plan?

SBI Life’s Smart Bachat plan is suitable for investors looking for conservative long-term investment options for building corpus along with life protection. It is also a great option for investors looking to seek long-term benefits with limited years of investment outgo.

When should you buy SBI Life’s Smart Bachat plan?

SBI Life’s Smart Bachat plan being the traditional endowment product is good to invest in any market scenario for conservative investors. However, investing early for a longer term can help accumulate a good amount of bonus along with securing family financially from life’s uncertainties.

Documents required for buying SBI Life’s Smart Bachat plan

  • PAN Card is mandatory
  • Income proof: salary certificate/ income tax return
  • Identity card: Aadhaar card/PAN card/Passport/ Driving license or any other document with photograph issued by government/ statutory/ regulatory authorities or by public sector undertakings.
  • Proof of residence: Municipal tax receipts/ utility bills/ passport/bank statement etc

With minimum documentation requirements, SBI life’s Smart Bachat Plan is an intelligent choice for many insurance buyers. If the convenient options of this policy suit you, buy it now by clicking the button below, enjoy attractive rates & secure your future.

Discontinuance of premium in SBI Life’s Smart Bachat plan

SBI life’s Smart Bachat policy offers the benefit of surrender value/paid-up value. In this, policy acquires paid-up status if the premium is paid for at least 2 years for premium payment term less than 10 years and 3 years for policies with premium payment term for more than 10 years. Hence, if you discontinue your premium payment after the policy attains paid-up value, the policy will not be terminated. However, the benefit of sum assured will be reduced to paid-up sum assured which will be paid out on death or on maturity with vested bonuses.

Surrender of SBI Life’s Smart Bachat plan

SBI Life’s Smart Bachat plan acquires paid-up value or surrender value status when two years premiums are paid in full (for premium payment term less than 10 years) and three full years premiums are paid (for premium payment term more than 10 years). On surrender, higher of guaranteed surrender value (GSV) or special surrender value (SSV) including vested bonuses, if any will be paid. GSV will be equal to basic premiums paid multiplied by GSV factors as mentioned in the policy. SSV is determined based on the past experience of the product along with reviewing future experience.

Loan facility in SBI Life’s Smart Bachat plan

In SBI Life’s Smart Bachat plan, once the surrender value is acquired, policy qualifies for the loan facility. Amount of loan will be limited up to a maximum of 90% of surrender value/paid-up value. Interest on the loan will be as per the rate applicable which will be declared by the company from time to time.

Exclusions under SBI Life’s Smart Bachat

Suicide exclusion: If the life assured commits suicide within one year of commencement of policy or a year from date of revival of the policy, insane or insane state, no death benefit will be payable to the beneficiary. However, an amount equivalent to 80% of total premiums paid till the date of death is paid to the beneficiary. After the payment, all the benefits under the policy will be ceased.In the case of Option B, exclusions in specific to AD&TPD benefits are also applicable. Exclusions are an infection, drug abuse, self-inflicted injuries, a criminal case, nuclear contamination, war and civil commotion, aviation and hazardous sports.


SBI Life’s Smart Bachat plan is a savings plan that provides long-term benefits of life coverage and savings by limiting your obligation to pay. With customizable and flexible features, SBI Life’s Smart Bachat plan is a great choice to meet the dual needs of insurance and savings.

Choosing the right endowment plan is not an easy task and can be a bit of an ordeal in itself. Which is why we have simplified the process for you, simply enter the requested details and browse through the relevant plan of your choice, instantly!


Yes. You can avail a loan up to a maximum of 90% of the surrender value of Smart Bachat policy. The loan facility is made available to meet unexpected expenses but only after the policy acquires surrender value which means the completion of 2-3 years of a policy (depending on the premium payment term). Interest applicable to the loan is declared by SBI life from time to time.

Yes. SBI Life’s Smart Bachat plan offers a discount on premium in the form of rebate for policyholders opting for higher sum assured. Details are mentioned below

Basic sum assured (in INR.) Rebates on premium per thousand sum assured (in INR.)
1,00,000 ≤ SA < 3,00,000 Nil
3,00,000 ≤ SA < 5,00,000 3
≥ 5,00,000 4