SBI Life – Smart Money Back Gold

SBI Life Insurance Company is one of the reputed insurance companies in India. The company was established in the year 2001 by coming together of State Bank of India, Indian multinational bank and BNP Paribas Cardif, global insurance player. With the widest bancassurance network and widespread presence of branch offices across the country, SBI Life Insurance Company has emerged as one of the strongest leaders in the Indian Insurance market. The company has also been awarded as ‘’Life Insurance Company of the Year. SBI Life Insurance Company offers a versatile range of insurance and savings products for group and individual customer segments. These products not just assure financial security but also helps you meet various long-term financial goals.

What are Endowment plans?

Endowment policies are life insurance policies which apart from providing life insurance coverage also gives you an opportunity to save for long-term goals. Endowment plans are designed in a way to help you save regularly for a specified period of time. During the tenure, if the life assured dies, lump sum assured would be paid to the beneficiary. In case, the life assured survives the policy period, he/she will be paid the maturity benefit at the end of the term. Endowment plans come in many variants. Money back plan is one such variant which pays back sum assured in regular intervals instead of paying the lump sum all at once. This can help you meet long-term needs based on life-stage.

SBI Life’s Smart Money Back Gold

SBI Life’s Smart Money Back Gold is a non-linked, with profit endowment assurance plan. This plan is specially crafted to save for key milestones of life such as wedding, children’s higher educations and many such life-stage moments. SBI Life’s Smart Money Back Gold pays back the sum assured at regular intervals along with providing life insurance coverage in the event of an untimely demise. The plan offers many attractive features.

Features of SBI Life’s Smart Money Back Gold

  • Money back option to tailored meet your financial needs at crucial stages of life.
  • Survival benefit of 110% of sum assured paid till maturity
  • Fixed cash inflows to meet various long-term needs
  • Large sum assured rebate
  • Additional optional riders-SBI Life-Accidental Death Benefit Rider, SBI Life-Accidental Total & Permanent Disability Benefit Rider and SBI Life-Preferred Term Rider

Benefits of SBI Life’s Smart Money Back Gold

  • Survival Benefit and Maturity Benefit: Survival benefit is 110% of sum assured paid at regular intervals. The last instalment will also include vested simple reversionary bonuses and terminal bonus if any. Here is a chart showing survival benefits paid at regular intervals.
Survival Benefit paid 1st Installment of Survival Benefit Payment 2nd Installment of Survival Benefit Payment 3rd Installment of Survival Benefit Payment 4th Installment of Survival Benefit Payment Maturity Benefit
Total Sum Assured (As a % of Basic SA)
110%

110%

110%

110%

110%
Option 1-12 Year Policy At the end of the 3rd Policy year, 20% of the Sum Assured At the end of the 6th Policy year, 20% of the Sum Assured At the end of the 9th Policy year, 20% of the Sum Assured Not Applicable At the end of the Policy Tenure of 12 years, 50% of the Sum Assured is paid and the policy terminates
Option 2-15 year Policy At the end of the 3rd Policy year, 15% of the Sum Assured At the end of the 6th Policy year, 15% of the Sum Assured At the end of the 9th Policy year, 15% of the Sum Assured At the end of the 12th Policy year, 15% of the Sum Assured At the end of the Policy Tenure of 15 years, 50% of the Sum Assured is paid and the policy terminates
Option 3-20 year Policy At the end of the 4th Policy year, 15% of the Sum Assured At the end of the 8th Policy year, 15% of the Sum Assured At the end of the 12th Policy year, 15% of the Sum Assured At the end of the 16th Policy year, 15% of the Sum Assured At the end of the Policy Tenure of 20 years, 50% of the Sum Assured is paid and the policy terminates
Option 4-25 year Policy At the end of the 5th Policy year, 15% of the Sum Assured At the end of the 10th Policy year, 15% of the Sum Assured At the end of the 15th Policy year, 15% of the Sum Assured At the end of the 20th Policy year, 15% of the Sum Assured At the end of the Policy Tenure of 25 years, 50% of the Sum Assured is paid and the policy terminates
  • Death benefit: In the event of the untimely demise of the policyholder, the higher of the below is paid as a death benefit to the beneficiary.
    • Sum assured on death + vested simple reversionary bonuses + terminal bonuses, if any.
    • Minimum death benefit which is equal to 105% of total premiums paid.

Where, sum assured on death is higher of basic sum assured or a multiple of annualised premium.Details of multiples are mentioned below.

Policy term Age at entry < 45 years Age at entry ≥ 45 years
12, 15, 20 or 25 10 7
  • Customization benefit: The policy can be customized to enhance the coverage by opting for additional riders available.
    • SBI life – preferred term rider
    • SBI life – accidental death benefit rider
    • SBI life – accidental total & permanent disability benefit rider
    • SBI life – Criticare 13 non-linked rider
  • Tax benefit: Premiums paid for SBI Life’s Smart Money Back Gold plan qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. The benefits paid out are also tax-free under Section 10 (10D) of the IT Act.

Eligibility Criteria for SBI Life’s Smart Money Back Gold

Eligibility conditions Minimum Maximum
Entry age
Option 1 – 12 years
Option 2 – 15 years
Option 3 – 20 years
Option 4 – 25 years

15 years
15 years
14 years
14 years

55 years
55 years
50 years
45 years
Maturity age 27 years 70 years
Policy Term
Option 1
Option 2
Option 3
Option 4


12 years
15 years
20 years
25 years
Premium paying term Same as policy term
Premium payment frequency Yearly/Half-yearly/Quarterly/Monthly (if the monthly mode is chosen, three months premium needs to be paid in advance. Renewal premium payment can be made only through 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.4,500
Rs. 2,400
Rs. 1,200
Rs. 400


No Limit
Sum assured range ( in multiples of Rs. 1000) Rs. 75,000 No limit

Eligibility conditions for riders

Riders Entry age Sum assured Maturity age
Minimum Maximum Minimum Maximum
SBI life – preferred term rider 18 years 65 years Rs. 25,000 Rs. 50 lakhs 70 years
SBI life – accidental death benefit rider 18 years 65 years Rs. 25,000 Rs. 50 lakhs 70 years
SBI life – accidental total & permanent disability benefit rider 18 years 65 years Rs. 25,000 Rs. 50 lakhs 70 years
SBI life – Criticare 13 non-linked rider 18 years 55 years Rs. 25,000 Rs. 20 lakhs 64 years

Who should buy SBI Life’s Smart Money Back Gold plan?

SBI Life’s Smart Money Back Gold plan is suitable for every individual seeking for investment options to secure and save for special moments like children’s education, wedding etc.

When should you buy SBI Life’s Smart Money Back Gold plan?

SBI Life’s Smart Money Back Gold plan can be availed from 14 years of age to 55 years. However, stating savings at an early age gives you benefit of time and help you save for your long-term goals adequately.

Documents required for buying SBI Life’s Smart Money Back Gold plan

  • PAN card is mandatory
  • Identity proof: PAN card/Passport/Driving license/Voter ID card etc.
  • Proof of address: Aadhaar card/ Bank account statement/ telephone bill/ electricity bill, etc.
  • Income proof: IT returns/ salary slip/ employer’s certificate etc.
  • Age proof: Birth certificate/PAN card/Passport/ school certificate etc.

Discontinuance of premium in SBI Life’s Smart Money Back Gold plan

If the premium payments are discontinued during the initial three years or the payment of premium is not made within the grace period of 30 days, policy will get lapsed and all the benefits will cease. However, lapsed policy can be revived within two years from the date of first unpaid premium. If the premium payment is discontinued after the policy acquires paid-up value, benefits will continue till maturity and the policy will be converted to ‘paid-up value policy’ with reduced benefits.

Surrender of SBI Life’s Smart Money Back Gold plan

Policy acquires surrender value only if the premiums for the first three years are paid in full. When you surrender the policy, Higher of Guaranteed surrender value (GSV) or Special Surrender value is payable. If there are any vested bonuses, it will be added to GSV. GSV is the GSV factor multiplied by the basic premium fewer survival benefits paid.

Details of GSV factors are as below :

Policy year GSV factor
1 0%
2 0%
3 30%
4-7 50%
8-10 55%
11-15 60%
16-20 65%
21 Onwards 70%

Loan facility in SBI Life’s Smart Money Back Gold plan

No loan facility is available under SBI Life’s Smart Money Back Gold plan.

Exclusions in SBI Life’s Smart Money Back Gold plan

If the life assured commits suicide within a year from date of commencement of policy or from the date of policy revival, policy shall be void. However, 80% of total premiums paid as on the date of death intimation will be paid to beneficiary or nominee.

Conclusion

SBI Life’s Smart Money Back Gold plan offers financial protection at different stages of life. With various plan options suit diverse cash flow needs and additional riders to enhance the coverage, SBI Life’s Smart Money Back Gold plan is a tailor-made plan for financially securing your family’s future dreams.


FAQs

Yes. The policy provides a discount in the form of a large sum assured rebates.Details are here below :

Sum assured Rebate per thousand sum assured
Rs. 0.75 ≤ SA Nil
Rs. 2 lakhs ≤ SA Rs.1
Rs. 3 lakhs ≤ SA Rs.2
≥ Rs. 6 lakhs Rs.3

Here are the critical illnesses covered under the rider.

  • Cancer of specified severity
  • Coronary artery bypass surgery
  • First heart attack of specified severity
  • Open heart replacement
  • Kidney failures 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