SBI Life Insurance Company is a leading life insurance provider in India. The company has been established as a joint venture between the State Bank of India Group and BNP Paribas Cardiff. Both the stakeholders are experts in the field of finance as SBI Bank is a leading bank in India and BNP Paribas Cardiff is the insurance division of BNP Paribas Group. This expertise lends credibility to SBI Life Insurance and the company offers attractive life insurance plans which not only provide good coverage benefits, they also have affordable premiums.
SBI Life Insurance Money Back Plan is traditional savings oriented insurance plan. The plan allows your insurance cover during the term of the policy and creates a savings corpus. Moreover, during the term of the plan, you get money back benefits at specific intervals. These benefits are expressed as a percentage of the sum assured. When the plan matures, the remaining sum assured is paid. However, in case of death, the full sum assured is paid under SBI Life Insurance Money Back Plan even if the plan has already paid the money back benefits.
SBI Life – Smart Money Back Gold Plan is an SBI Life Insurance Money Back Plan which offers liquidity through money-back benefits and also an insurance coverage throughout the term of the plan. Here are the salient features of this SBI Life Insurance Money Back Plan –
Features of SBI Life – Smart Money Back Gold Plan
Benefits payable under SBI Life – Smart Money Back Gold Plan
The following benefits are payable under this SBI Life Insurance Money Back Plan –
Since this money-back insurance plan, money back benefits are paid during the term of the plan. These money-back benefits are called survival benefits. SBI Life – Smart Money Back Gold policy has four survival benefit options that you can choose. The options and their respective survival benefits are as follows –
Survival benefits paid
Plan Option 1 – Term 12 years
20% of the sum assured is paid at the end of the 3rd, 6th and 9th policy year
Plan Option 2 – Term 15 years
15% of the sum assured is paid at the end of the 3rd, 6th, 9th and 12th policy years
Plan Option 3 – Term 20 years
15% of the sum assured is paid at the end of the 4th, 8th, 12th and 16th policy years
Plan Option 4 – Term 25 years
15% of the sum assured is paid at the end of the 5th, 10th, 15th and 20th policy years
When the selected term of the plan comes to an end 50% of the sum assured, remaining after the payment of the survival benefit is paid as the maturity benefit. Moreover, along with the remaining sum assured, accrued simple reversionary bonuses and a terminal bonus is also paid. These bonus additions enhance the total maturity benefit payable under the policy.
If the insured dies during the term of the policy higher of the sum assured on death or 105% of total premiums paid till death would be paid as a death benefit. The sum assured on death would be expressed as higher of 10 or 7 times the annual premium (based on the insured’s age) or the basic sum assured chosen at the time of buying the policy. Moreover, vested reversionary bonuses and a terminal bonus would also be added to the sum assured on death.
SBI Life – Smart Money Back Gold is a participating money back policy. as such, the policy earns a bonus if SBI Life makes a profit in a financial year. Simple reversionary bonuses are paid under the policy if the company earns a profit and if the premiums are duly paid. This bonus is paid throughout the term of the policy. Moreover, on maturity or on death, a terminal bonus might also be paid.
This SBI Life Insurance Money Back Plan allows you the option of four riders which you can add to your base policy by paying an additional premium. The riders which are available are as follows
Under this rider, an additional benefit is paid if the insured dies due to an accidental death during the term of the policy
Under this rider, permanent and total disablement suffered in an accident would be covered. A specified benefit would be paid if the insured becomes permanently disabled in an accident
Under this rider, an additional benefit would be paid if the insured dies during the term of the plan. Death can be due to accidental causes or natural ones
This is a critical illness rider available with the plan. This rider covers 13 specified critical illnesses. If the insured is diagnosed with any of the covered illnesses during the term of the policy, an additional benefit would be paid in a lump sum. You can choose one or more of the available riders for a complete scope of coverage
Since this SBI Life Insurance Money Back Plan is a life insurance policy, you can claim dual tax benefits. The premiums paid for the plan would be allowed as a tax-free deduction up to INR 1.5 lakhs under Section 80C of the Income Tax Act, 1961. Moreover, the survival benefit, death benefit or maturity benefit that you receive from the policy would also be allowed as a tax-free income under Section 10 (10D) of the Income Tax Act, 1961.
Eligibility parameters of SBI Life – Smart Money Back Gold Plan
Plan options 1and 2 – 15 years to 55 years
Plan option 3 – 14 years to 50 years
Plan option 4 – 14 years to 45 years
27 years to 70 years
Term of the policy
Plan option 1 – 12 years
Plan Option 2 – 15 years
Plan option 3 – 20 years
Plan option 4 – 25 years
Minimum – INR 75,000
Maximum – no limit
Premium paying term
Equal to the term of the plan
Minimum – INR 4500/year
Maximum – no limit
Other benefits of SBI Life – Smart Money Back Gold Plan
Besides the above-mentioned benefits, this SBI Life Insurance Money Back Plan has the following benefits too –
If you have paid premiums for the first three policy years and subsequent premiums are unpaid, the policy would become paid-up and acquire a paid-up value. Thereafter, if the premiums are not paid, the policy runs on the paid-up value and on maturity or death, the paid-up value is paid. The paid-up value is calculated as follows –
Paid-up value on death = (sum assured on death * paid-up factor) + vested bonus
Paid-up value on maturity = (base sum assured * paid-up factor) + vested bonus
When the premiums are discontinued, future bonuses do not accrue under the plan. However, the earlier vested bonuses are added to the paid-up sum assured to arrive at the paid-up value.
If you want to quit your policy before the term of the policy has come to an end, you can surrender the plan. Surrender is allowed if the policy has acquired a paid-up value, i.e. premiums for the first three years have been paid. When the policy is surrendered, surrender value is paid. This value is higher of the guaranteed surrender value (GSV) or the special surrender value (SSV) both of which are calculated as follows –
Guaranteed surrender value (GSV) = [(aggregate premiums paid * GSV factor) – survival benefits already paid] + [vested bonus * GSV factor of bonus]
Special surrender value is calculated by the insurance company itself depending on its profit experience. The value is, therefore, dependent on the company’s assessment.
Premium discounts are allowed if you choose higher coverage levels. The discount which you can claim is as follows –
Sum assured level
INR 200,000 to INR 299,999
INR 1 per INR 1000 sum assured
INR 300,000 to INR 599,999
INR 2 per INR 1000 sum assured
INR 600,000 and above
INR 3 per INR 1000 sum assured
If the SBI Life Insurance Money Back Plan is in a lapsed state, you can revive the policy by paying the outstanding premiums and interest thereon. Revival is allowed within two years of lapse of coverage. Moreover, a declaration of good health might also be required by the insurance company at the time of revival so that your insurability can be judged.
Under this SBI Life Insurance Money Back Plan, there are specific exclusions on suicides. These exclusions are as follows –
Here are the sample premium rates, without taxes, that would be payable at different ages and for different plan durations. The sum assured of the policy is taken to be INR 5 lakhs. No riders are selected and the premiums are assumed to be paid annually –
Plan option 1 – term 12 years
Plan option 2 – term 15 years
Plan option 3 – term 20 years
Plan option 4 – term 25 years
This SBI Life Insurance money back plan is sold offline by the company. You would either have to visit the nearest branch of the company or meet with an SBI agent to buy the policy. You would have to fill up a physical application form, submit your documents and apply for SBI Life Smart Money Back Gold Plan.
The documents required for buying the plan include the following –
In order to make a valid claim under this SBI Life Insurance money-back policy, here are the required steps –
Claim for maturity benefit or survival benefit is initiated by SBI Life before the benefit payment date. You would just have to fill up and submit a claim discharge voucher and an identity proof to make a claim.
In case of death of the insured, the nominee should inform SBI Life of the death. A claim form should be filled and submitted so that the death claim can be processed and paid by the company at the earliest. The documents required for a death claim are as follows
Yes, if the premiums are not paid within the due date, a grace period is allowed under the plan. This grace period is 30 days if the premiums are paid annually, half-yearly or quarterly. On the other hand, if the premiums are paid monthly, the grace period allowed would be limited to 15 days.
Bonus entirely depends on the profits earned by the insurance company. The bonus rates are never fixed. They are calculated based on the profit generated in a financial year. Moreover, the bonus is not fixed. If in a financial year the insurance makes a loss, no bonus would be declared in that year.
Yes, a premium loading is applicable if you pay premiums in any mode other than the annual mode. In the case of half-yearly premiums, each half-yearly premium would be calculated as 51% of the annual premium. For quarterly premiums, each quarterly premium instalment would be 26% of the annual premium. Lastly, for monthly premiums, each premium would be calculated as 8.50% of the annual premium.
Yes, if you surrender the policy after three completed policy years and when the premiums for the first three years have been paid, the surrender value that you receive would be completely tax-free in your hand.
Under the SBI Life Insurance Money Back Plan, a free-look period of 15 days for direct marketing channels and 30 days for distant marketing channels is allowed. During this period, you can cancel the policy after it has been issued and avail a refund of premium.