SBI Life Smart Money Back Gold Plan

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 – Let’s understand the meaning

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

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

1. There are four plan options available under the plan. The money-back benefit depends on the plan option that you select
2. This is a participating plan which earns simple reversionary bonuses throughout the term of the plan
3. You can avail up to 110% of the sum assured till the maturity of the plan
4. If you choose a high sum assured level, you can claim a premium rebate
5. Four optional riders are available under the plan which helps you in customizing and enhancing your plan’s scope of coverage
6. Premiums are payable throughout the term of the plan

Benefits payable under SBI Life – Smart Money Back Gold Plan

The following benefits are payable under this SBI Life Insurance Money Back Plan –

1. Survival benefits

   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 –

   Plan options	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

2. Maturity benefit

   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.

3. Death benefit

   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.

4. Policy bonus

   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.

5. Policy riders

   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

1. SBI Life – Accidental Death Benefit Rider

   Under this rider, an additional benefit is paid if the insured dies due to an accidental death during the term of the policy

2. SBI Life – Accidental Total & Permanent Disability Benefit Rider

   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

3. SBI Life – Preferred Term Rider

   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

4. SBI Life – Criticare 13 Non-Linked Rider

   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

5. Tax benefits

   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

Entry age	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
Maturity age	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
Sum assured	Minimum – INR 75,000 Maximum – no limit
Premium paying term	Equal to the term of the plan
Premium payable	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 –

1. Paid-up value

   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.

2. Surrender 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.

3. Premium rebates

   Premium discounts are allowed if you choose higher coverage levels. The discount which you can claim is as follows –

   Sum assured level	Premium rebate
   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

4. Revival

   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.

Exclusions under SBI Life – Smart Money Back Gold Plan

Under this SBI Life Insurance Money Back Plan, there are specific exclusions on suicides. These exclusions are as follows –

1. If the insured commits suicide within a year of buying the policy, the death would be excluded from coverage. In such cases, 80% of the premium paid would be refunded.
2. If the insured commits suicide within a year of renewing a lapsed policy, such a death would be excluded. In that case, higher of 80% of the premiums paid or the available surrender value would be paid.

Sample premium rates of SBI Life – Smart Money Back Gold Plan

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 –

How to buy SBI Life Smart Money Back Gold Plan

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 –

• Photographs of the insured
• Identity proof
• Age proof
• Address proof
• Bank account details
• PAN Card and Aadhar card so that Aadhar can be linked to the policy

How to make a claim under the plan?

In order to make a valid claim under this SBI Life Insurance money-back policy, here are the required steps –

1. Maturity or survival benefit claim

   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.

2. Death 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

   1. Claim form
   2. Death certificate
   3. Police FIR in case of accidental death
   4. Medical reports
   5. Identity proof of the claimant
   6. Any other document as required by the insurance company