SBI Life – Smart Income Protect

SBI Life Insurance Company, a well-reputed insurer in the Indian insurance domain is formed by coming together of two global leaders in the financial domain, State Bank of India and BNP Paribas Cardif. State bank of India holds 62.1% of the total capital and BNP Paribas Cardif holds 22% of the total capital of the company. SBI Life Insurance Company offers a comprehensive range of products that are suitable for both individual and group customer segments. With product diversity, customer service quality and efficient system in place for processing, SBI Life Insurance Company has emerged as one of the best insurance companies.

What is Endowment Insurance Policy?

An endowment insurance policy is a dual benefit plan that offers both insurance and investment opportunity. For the regular savings that you make in the form of premium for a specified period of time, the policy promises to pay back either the death benefit or the survival/maturity benefit, whichever is earlier. Endowment policies come in many variants such as traditional with profit plans, unit linked endowment plans, non-profit endowment plans and money back plans etc. Endowment policies help you to be financially prepared for uncertainties and as well as for the long-term goals.

SBI Life’s Smart Income Protect

SBI Life’s Smart Income Protect is a non-linked participating saving cum insurance plan. The plan is designed to offer double benefit of life protection and regular income over a period of 15 years. There are various attractive features offered by the plan that helps you avail the income at regular intervals along with having comprehensive protection.

Features of SBI Life’s Smart Income Protect

  • Dual benefit of insurance coverage + regular income
  • Select policy term suitable for you – 7 years, 12 years and 15 years
  • Guaranteed annual payouts of 11% of sum assured/paid-up sum assured over a period of 15 years of payout period after maturity
  • At maturity, vested reversionary bonuses + terminal bonus, if any will be paid along with maturity benefits.
  • You can choose to opt for receiving maturity benefits in one go.
  • Additional optional riders to enhance the coverage

Benefits of SBI Life’s Smart Income Protect

  • Regular income benefit: The policy pays 11% of the sum assured for the next 15 years after maturity. In case of death during the payout period, all the future premiums will be paid to the beneficiary.
  • Maturity benefit: On surviving the policy period, Guaranteed sum assured or 110% of basic sum assured + vested reversionary bonuses + terminal bonus, if any. Is payable on maturity. You can choose to receive the entire maturity benefit in a lump sum or as regular income benefit for the next 15 years.
  • Death benefit: In the event of the untimely demise of the policyholder, the higher of the below two are payable to the beneficiary
    • Sum assured on death + vested simple reversionary bonuses + terminal bonus if any
    • 105% of the total premium paid till the date of death.
    Where, sum assured on death is the higher of below
    • Basic sum assured
    • Guaranteed sum assured at maturity
    • Multiple of annualised premium

Multiples are here in the table
Policy term Entry age < 45 years Entry age ≥ 45 years
7 5 5
12-15 10 7
  • Customization benefit: Coverage can be enhanced by opting for additional riders available nominal additional cost.
    • SBI Life – accidental death benefit rider
    • SBI Life – accidental total & permanent disability benefit rider
    • SBI Life – Criti care 13 non-linked rider
    • SBI Life – Preferred term rider
  • Tax benefit: Tax deduction/exemption benefit can be availed under Section 80C and Section 10(10D) of the Indian Tax Laws respectively.

Eligibility Criteria for SBI Life’s Smart Income Protect

Eligibility conditions Minimum Maximum
Entry age
Policy term – 7 years
Policy term – 12 years
Policy term – 15 years

11 years
8 years
8 years

58 years
53 years
50 years
Maturity age 18 years 65 years
Policy Term 7/12/15 years
Premium payment frequency Yearly/Half-yearly/Quarterly/Monthly
Premium frequency loading Half-yearly: 51% of the annual premium
Quarterly: 26% of the annual premium
Monthly: 8.5% of the annual premium
Sum assured range ( in multiples of Rs. 1000) Rs. 1,00,000 No limit
Payout period 15 years
payment frequency yearly

Eligibility criteria for riders

Riders Entry age Maturity age Sum assured
Minimum Maximum Minimum Maximum
SBI Life- accidental death benefit rider 18 years 60 years 65 years Rs. 25000 Rs. 50 lakhs
SBI life – accidental total & permanent disability benefit rider 18 years 60 years 65 years Rs. 25000 Rs. 50 lakhs
SBI Life – Criti care 13 non-linked rider 18 years 55 years 64 years Rs. 25000 Rs. 20 lakhs
SBI Life – Preferred term rider 18 years 60 years 65 years Rs. 25000 Rs. 50 lakhs

Who should buy SBI Life’s Smart Income Protect plan?

SBI Life’s Smart Income Protect plan is suitable for individual seeking for investment options that can provide financial support at regular intervals to meet special requirement of life. Individuals looking for income yielding investments with life insurance component can consider SBI Life’s Smart Income Protect plan to shield their family along with saving for the future.

When should you buy SBI Life’s Smart Income Protect plan?

It is wise to invest in SBI Life’s Smart Income Protect plan at an early life so that you can save enough with time for rainy days in future. As the plan also gives life protection, being insured at an early life gives you peace of mind.

Documents required for buying SBI Life’s Smart Income Protect plan

  • PAN card is mandatory
  • Age proof: Birth certificate/passport/school certificate/Driving license etc.
  • Income proof: Salary certificate/IT return/employer certificate
  • Identity proof: PAN card/Aadhaar card/passport/Voter’s ID card/driving license etc.
  • Address proof: Bank account statement/electricity bill/telephone bill/passport etc.

Surrender of SBI Life’s Smart Income Protect plan

The policy acquires paid-up value or surrender value when you make a premium payment for the first two years (policy term-7 years) and three years (policy term 12& 15 years). The sum assured for such policies will be reduced proportionately.

When you surrender a policy, higher of guaranteed sum assured or special sum assured will be paid.

Policy year % of the basic premiums paid
Policy term 7 years Policy term 7 years Policy term 7 years
1 0% 0% 0%
2 30% 30% 0%
3 30% 50% 30%
4-7 50% 55% 50%
8-10 NA 60% 55%
11-12 NA 60% 60%
13-15 NA 65% 65%

Guaranteed sum assured is GSV factor multiplied by basic premiums paid. Find below are the details of GSV factors

Loan facility in SBI Life’s Smart Income Protect plan

No loan facility is available under SBI Life’s Smart Income Protect plan.

Exclusions in SBI Life’s Smart Income Protect plan

If the life assured, whether sane or insane, commits suicide within one year from the date of commencement of policy or from date of revival of policy, policy will become null and void. All benefits offered under the plan will cease. However, 80% of total premium paid as on the date of death intimation will be payable to beneficiary/nominee provided policy is in-force.

Conclusion

SBI Life’s Smart Income Protect plan is a smooth way to plan for future income needs and various financial obligations. Along with providing life insurance coverage, SBI Life’s Smart Income Protect plan also offers you customisation facility with four types of optional additional riders that can enhance your benefits.


FAQs

Discount is available in the form of a rebate on the sum assured. Details are mentioned here :

Sum assured Rebate on the sum assured per Rs.1000
Rs. 1 lakh ≤ sum assured < Rs. 2 lakhs Nil
Rs. 2 lakh ≤ sum assured < Rs. 5 lakhs 2
Sum assured ≥ Rs. 5 lakhs 3

There are 13 critical illnesses covered under SBI Life’s Criti care 13 non-linked rider.

  • Cancer of specified severity
  • Open chest CABG (Coronary artery by-pass surgery)
  • First heart attack of specified severity
  • Open heart replacement or repair of heart valves
  • Kidney failure requiring regular dialysis
  • Major Burns
  • Major organ/bone marrow transplant
  • Permanent paralysis of limbs
  • Stroke resulting in permanent symptoms
  • Surgery of aorta
  • Coma of specified severity
  • Motor neurons disease with permanent symptoms
  • Multiple sclerosis with persisting symptoms

Yes. SBI life’s Smart Income Protect plan can be cancelled within free look period. There is 15 days (for policies bought offline) and 30 days (for policies bought through distance marketing) free look period given under SBI Life’s Smart Income Protect plan. Within this period, you can cancel your policy if you are not satisfied with its terms and conditions. However, it’s important to state the reason for cancellation.


Yes. If you miss a premium payment within stipulated due date for payment, the same can be paid within grace period given. The grace period given is 30 days from the day of the due date for yearly premium payment mode plans and 15 days from the day of the due date for monthly premium payment mode plans. The policy will remain in force during the grace period.