SBI Life – Smart Humsafar Plan

SBI Life Insurance Company is a result of an amalgamation between Indian public limited banking undertaking, State Bank of India and French multinational insurance company, BNP Paribas Cardif. With a diverse range of products and competitive pricing, SBI Life Insurance Company has emerged as one of the leading insurance companies in India. SBI Life Insurance Company was first started as a bancassurance channel which now follows a multi-distribution model to cater to a wide range of insurance needs across the country.

What are Endowment Plans?

Endowment plans are the insurance products that not only provide life insurance cover in an unfortunate event but also provides future financial shield by offering maturity benefits at the end of a specific policy term. Endowment plans can be purchased as a long-term investment to fulfil your long-term financial goals such as retirement planning, children higher-education or wedding etc. Endowment plans can be traditional non-linked or new-age unit-linked insurance plans. Endowments can be participating in plans that offer bonuses in addition to the sum assured or can also be non-participating plans.

SBI Life’s Smart Humsafar

SBI life’s Smart Humsafar is a joint life, participating endowment plan. Basically, it is a single policy that can provide life cover for both husband and wife along with providing opportunities to save for the future. It is a special insurance cum savings product that is designed for married couples.

Features of SBI Life’s Smart Humsafar Plan

  • Joint life cover with a savings element
  • 2.5% of the sum assured as a guaranteed minimum bonus for the first three years
  • Premium waiver benefit in case of death of any one of the lives assured
  • Optional additional riders

Benefits of SBI Life’s Smart Humsafar Plan

  • Death benefit: As the policy provide joint life protection, death benefits are paid out in two instances
    • First death: If one of the two lives assured dies during the policy term, the sum assured or 105% of all the premiums paid till the date of death, whichever is higher is paid out as a death benefit.

      Where sum assured on death is higher of the below:

      • Basic sum assured
      • sum assured at maturity
      • Multiples of annualized premium mentioned below
      Equivalent age at entry is < 45 years 10 times the annualized premium
      Equivalent age at entry is ≥ 45 years 7 times the annualized premium

      Once the benefit is paid out, all future premiums are waived off for the surviving life assured.

    • Second death: If the second life assured also dies, then sum assured + vested simple reversionary bonuses + terminal bonus, if any or 105% of the total premiums paid till the date of death (including the premiums that are waived off), whichever is higher is paid out to the nominee.

      Where sum assured on death is higher of the below

      • Basic sum assured
      • The guaranteed sum assured at maturity
      • Multiples of annualized premium mentioned below
      Equivalent age at entry is < 45 years 10 times the annualized premium
      Equivalent age at entry is ≥ 45 years 7 times the annualized premium
  • Maturity benefit: if any one of the lives assured or both the lives survive the policy term, the basic sum assured + vested simple reversionary bonuses + terminal bonus, if any will be paid out to the policyholders.
  • Additional accidental death cover benefit: Either of the lives assured or both the lives assured can avail additional coverage for accidental death at an additional and affordable cost of the premium. Both the lives assured can avail of this facility. As per the rider, benefits will be paid out if the death due to an accident happens within 120 days from the date of accidents.

    Sum assured range under the option is – minimum of Rs. 25,000 to a maximum of Rs. 50 lakhs

  • Tax benefit: Premiums paid for Smart Humsafar policy can be claimed under Section 80C of the Income Tax Act, 1961 for tax deductions. The benefits paid out will be tax-free under Section 10 (10D) of the Income Tax Act.

Eligibility Criteria for SBI Life’s Smart Humsafar Plan

Eligibility conditions Minimum Maximum
Entry age 18 years 46 years
Maturity age - 65 years
The age difference between the lives assured - 20 years
Policy term 10 years 30 years
Premium payment term Same as the policy term
Premium payment frequency Yearly/ half-yearly/quarterly/monthly (3 months premiums need to be paid in advance. Renewal premium payment can be done only through Electronic Clearing System (ECS) and Standing instructions.
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
Yearly
Half-yearly
Quarterly
Monthly

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

Depends on the basic sum assured
Sum assured range Rs. 1,00,000 Rs. 5 cr.

Who should buy SBI Life’s Smart Humsafar plan?

SBI Life’s Smart Humsafar plan is for providing joint life protection which is specifically suitable for married couples to secure their life along with savings element attached to it. For every married couples as an investor, SBI Life’s Smart Humsafar plan is an excellent package of investment cum insurance available.

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

SBI Life’s Smart Humsafar plan can be bought by any married couple before attaining the age of 46 years. It is wise to make investment into SBI life’s smart humsafar plan as soon as you promise to stay together for life.

Documents required for buying SBI Life’s Smart Humsafar plan

  • Identity proof: PAN card/ Aadhaar card/driving license /passport /Voter’s ID card etc
  • Address proof: electricity bill etc /Bank account statement
  • Income proof: salary certificate /IT return
  • Age proof: Birth certificate/school certificate/Passport etc

Discontinuance of premium in SBI Life’s Smart Humsafar plan

If the premium payment is missed during the first three years of the policy, 30 days grace period is given to make the premium payment. If the payment is not done within the grace period also, policy will be lapsed. Lapsed policy can be revived within two years from the date of discontinuance. After the three years of full premium payment, policy acquires surrender value/paid-up value status under which the policy benefits continue even if the further premiums are not paid. However, the benefits under the policy will be reduced to paid-up sum assured.

Surrender of SBI Life’s Smart Humsafar plan

Policy acquires surrender value only after paying premium for three full years. On surrender, higher of the guaranteed surrender value (GSV) or Special surrender value (SSV) including vested bonuses, if any will be paid. SSV is calculated based on assessment of asset share progression at different durations of the policy. GSV is calculated by multiplying GSV factors with basic premium paid. GSV factors are as mentioned below.

Policy year % of basic premium paid
1 0%
2 0%
3 30%
4-7 50%
8-9 55%
10 55%
11-15 60%
16-20 65%
21+ 70%

Loan facility in SBI Life’s Smart Humsafar plan

In an emergency situation, SBI Life’s Smart Humsafar plan allows you to avail loan up to the maximum of 90% of the surrender value. The loan interest rate applicable will be declared the company from time to time. It’s important to note that loan facility can be availed only after the policy acquires surrender value.

Exclusions under SBI Life’s Smart Humsafar Plan

Suicidal exclusion: If the life assured commits suicide within one year of commencement of the policy, in a sane or insane state, 80% of the total premium paid till the date of death is paid back to nominee/beneficiary. All the benefits under the policy will cease and policy will be treated as void.

Conclusion

SBI Life’s Smart Humsafar plan is traditional savings plan with multiple benefits for married couple to secure themselves and to save for their better future. With joint life cover, additional riders and premium waiver benefits, SBI Life Smart Humsafar plan is the best investment plan that you can gift to yourself and to your life partner.


FAQs

The premium for some policies can be paid completely till a certain specified age. After the completion of that age, policy benefits will continue to exist till death or maturity even without paying a further premium. This is called ‘paid-up’ status. Sum assured will also be reduced and be limited to paid-up value.

In case of SBI life’s Smart Humsafar, policy attains paid-up value only if premiums for at least three full years have been paid.


Yes. For availing large sum assured, the rebate is available in the form of a discount on the basic premium. The discount slabs are mentioned below.

Sum Assured (in Rs.) Discount/rebate on premium per thousand sum assured (in Rs.)
1,00,000 ≤ sum assured < 3,00,000 Nil
3,00,000 ≤ sum assured < 5,00,000 2
≥ 5,00,000 3