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.
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.
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.
Flexibility to choose from two different plan options for life cove
This option offers life cover + simple revisionary bonusesthroughout the policy term.
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.
For Endowment option
For Endowment with AD&TPD benefit
|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|
Take a look at corresponding policy term for premium payment term chosen
|Premium payment term (in years)||Policy term (in years)|
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|
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.
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.
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.
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.
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.
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.
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|
Other SBI Life Savings Plans