SBI Life ULIP Plans

SBI Life Insurance Company offers a range of life insurance plans to customers. Unit-linked insurance plans are one such variant of the different types of plans offered by the company. These plans are investment oriented plans which aim to create wealth for the policyholder as well as give insurance cover. Let’s understand what unit-linked plans mean and the type of unit-linked plans offered by SBI Life Insurance –

What is a unit-linked insurance plan?

Unit-linked insurance plans, or ULIPs in short, are life insurance plans which combine the dual benefits of investment returns as well as insurance coverage. The premiums paid towards the plan are invested in funds which, in turn, invest in market-linked securities. Policyholders can, therefore, enjoy returns linked to the growth of the capital market and also avail a life insurance coverage.

Salient features of ULIPs

ULIPs are categorised by some salient features which also differentiate the plans from other life insurance policies. These features are as follows –

  • The choice of the amount of premium depends on the policyholder based on which the coverage level is decided
  • There are different types of funds into which the premium is invested. Main fund types include equity fund, debt fund and balanced fund.
  • Investment risk and the potential of return depend on the type of fund selected. Policyholders can select one or multiple funds for investing their premium
  • Various charges are deducted from the premium and the fund value for the benefits offered by the plan. These charges include premium allocation charge, fund management charge, mortality charge (for insurance coverage), policy administration charge, etc.
  • The first five years of the policy are called lock-in period
  • After the lock-in period is over, the policyholder can withdraw funds from the fund value up to a certain level. This is called partial withdrawal
  • The policyholder can also change the funds selected for investing the premium. This change of fund is called switching
  • Many ULIPs also allow readymade investment strategies where the premium is invested in pre-determined funds based on a pre-defined ratio. The investments are also managed automatically
  • On maturity of the policy, the fund value is paid. The policyholder can also choose to avail the fund value in five equal instalments postmaturity. This is called the settlement option
  • Returns under ULIPs are not guaranteed and depend on the market performance

ULIPs offered by SBI Life Insurance

SBI Life Insurance Company offers the following types of ULIPs –

  • SBI Life Smart InsureWealth Plus
    This plan provides various benefits to the policyholder making it flexible and attractive. The main benefits of the plan are as follows –

    • The plan requires monthly premiums which makes it affordable
    • There are three investment strategies to choose from, both readymade and customisable
    • The maturity charges deducted from the premium are returned on maturity
    • Fund Value boosters are added from the 11th policy year.
  • SBI Life Saral InsureWealth Plus
    This plan is also similar to Smart InsureWealth Plus but there are no readymade investment strategies. The plan, instead, offers the following benefits –

    • There are eight fund variants to invest the premium
    • Systematic withdrawals are allowed from the 11th year of the policy for regular incomes
    • Fund value boosters are added from the 6th policy year itself
  • SBI Life Smart Wealth Builder
    This is a flexible unit linked plan which also promises guaranteed additions to increase the Fund Value. These additions and other benefits are as follows –

    • Up to 125% of the annual premium is allowed as an addition
    • The addition is added at the end of the 10th policy year and then after every 5=five years
    • There are seven types of funds to choose from
    • The sum assured can be increased or decreased if the policyholder wants
  • SBI Life Smart Wealth Assure
    A simple plan, it has the following benefits –

    • A single premium is required to buy the plan
    • The plan can be enhanced by adding an Accidental benefit rider
  • SBI Life Smart Power Insurance
    This plan provides an additional scope of coverage through inbuilt rider benefits. Here is what the plan promises –

    • An inbuilt rider for permanent total disability
    • Two coverage options of uniform sum assured and increasing sum assured
    • Trigger fund option is available for investment which automatically protects the investment from market fluctuations
    • The policyholder can also choose to invest as per his strategy through Smart Fund Option
  • SBI Life Smart Elite
    This plan allows flexibility by offering two types of death benefit option to the policyholder. Here is the brief of the plan –

    • Two plan options for Gold and Platinum. The Platinum option pays the sum assured and the fund value in case of death
    • There is an inbuilt accidental death and disability benefit rider for wider coverage
    • Premium redirection and switching facilities help policyholders manage their investment strategies effectively.
  • SBI Life Smart Privilege
    This plan is designed for ultra high net worth individuals who have a higher disposable income. The benefits of the plan are as follows –

    • Loyalty additions are promised from the 6th policy year
    • Unlimited free redirections and fund switching are allowed
    • Eight fund options are available for investments
  • SBI Life Saral Maha Anand
    This plan can be bought through a simple application without undergoing elaborate medical check-ups. The other benefits include the following –

    • Three types of funds are available
    • Policyholder also has the option of selecting an additional accidental rider for increasing the coverage
    • Premium allocation charges are waived from the 11th year of the plan
  • SBI Life eWealth Insurance
    This is an online unit linked plan which can be bought easily. The plan benefits are as follows –

    • There is the feature of automatic asset allocation through which the premiums are invested in a pre-determined manner
    • The policyholder has to choose from two investment options or Growth or Balanced based on which the automatic asset allocation strategy would be applied
    • No premium allocation charges are deducted from the premium
  • SBI Life Smart Scholar
    This is a child-oriented unit linked plan which promises to create a secured corpus for the child even if the parent is not around. The benefits include the following –

    • Premiums are waived if the parent dies but the plan continues
    • Loyalty additions are added besides market-linked returns for better earnings
    • Seven fund options are available for investing the premium

    So, these are the ULIPs offered by SBI Life Insurance Company. Customers can choose any plan depending on their need and investment preference.


FAQ’s

Premium redirection is the feature herein the policyholder can redirect future premiums to another fund or funds.


No, partial withdrawals are allowed only after the completion of the first five policy years.


Premiums can be paid throughout the policy tenure, for a limited period or at once depending on the unit-linked plan chosen. SBI Life’s unit-linked plans also allow different premium payment modes.


Unit-linked plans allow insurance coverage to the insured. For this coverage, a charge is deducted from the fund value which is called the mortality charge.


The cost of the switching facility depends on the plan selected. Many unit-linked plans allow a limited number of switches in a policy year free of cost. Thereafter, for any exceeding number of switches, a charge is applied.

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