SBI Life eWealth Plan

SBI Life Insurance Company Limited offers a range of insurance plans both online and offline. Savings oriented plans, protection plans, pension plans, etc. are all offered online. eWealth insurance plan is one such plan which is offered by the company online through its own websites as well as other online websites. the eWealth plan is a unit-linked insurance plan which helps you earn attractive market-linked returns and also enjoy life insurance coverage.

What is a unit-linked insurance plan?

A unit linked insurance plan is an investment-linked insurance plan where the premiums paid are invested in market-related securities. There are different types of investment funds and you can choose to invest your premium in any one or more funds. The amount of premium, the policy term and the investment funds are chosen by the policyholder. The sum assured depends on the premium amount and the insured’s age. Unit-linked plans, therefore, provide good returns and also insurance coverage.

SBI Life’s eWealth Plan

As mentioned earlier, eWealth is an online unit linked insurance plan. The plan can be bought by paying affordable annual premiums starting at INR 10,000. There are two plan options of Growth and Balanced to select from and the plan also offers an automated investment strategy. You have to select the plan option and your premiums would be automatically allocated to different funds. The aim of automatic asset allocation is not only to provide you with maximum returns but also to protect the returns from market volatility as the plan approaches maturity.

Key features of SBI Life eWealth Plan

  • Since the plan is available online, there is no premium allocation charge.
  • You don’t have to stress with managing the investment of your premium. The plan offers automatic asset allocation for maximum returns
  • There are two plan options – Growth and Balanced
  • Premiums paid are invested in three funds – equity, debt and money market fund, depending on the plan option selected
  • The plan can be easily bought in three simple steps.

Advantages of SBI Life eWealth Plan

The plan offers various advantages which include the following –

  • Automatic Asset Allocation
    The automatic asset allocation feature gives you a ready-made investment strategy. The premium is invested majorly in equity fund in the initial years of the policy so that the fund can grow and earn maximum returns. Thereafter, as the policy term advances, investment in equity fund reduces and investment in bond and money market funds increase. This is done to protect the generated return from sudden market fluctuations. As the plan approaches maturity, most of the fund value is invested in bond and money market funds to protect the fund value. Thus, asset allocation works in your favour and helps you minimise market-related risks while at the same time enjoying high returns.
  • Higher allocation of premium
    As the premium allocation charge is absent, a higher amount of premium is allocated to the funds. This higher allocation also results in higher returns.
  • Facility of partial withdrawals
    Being a unit-linked plan, you get the benefit of partial withdrawals from the sixth year of the policy. Every policy year you get one free partial withdrawal wherein you can withdraw up to 15% of the available fund value.
  • Benefits paid
    The plan pays either a death benefit if the insured dies during the term of the plan or a maturity benefit. The actual benefit paid under the death and maturity benefit is as follows –
    • Death benefit - in case of death of the insured within the policy tenure, higher of the fund value, sum assured or 105% of total premiums paid till death is paid to the nominee. If there had been any partial withdrawals in the last two years before death, the number of partial withdrawals would be reduced from the sum assured for calculation purposes.
    • Maturity benefit - when the plan matures and the insured is alive, the available fund value is paid as maturity benefit. You can choose to receive this amount in a lump sum or opt for the settlement option. Under the settlement option, you can avail the fund value in five instalments after the maturity of the plan.

Eligibility criteria

SBI Life’s eWealth Plan can be bought by resident Indian individuals. Other eligibility parameters include the following –

Eligibility parameter Minimum Maximum
Age when buying the policy 18 years 50 years
Maximum cover ceasing age NA 60 years
Available policy tenure 10 years 30 years
Premium paying mode Regular, i.e. throughout the policy tenure
Premium amount INR 10,000/year or INR 1000/month No limit
Sum assured Higher of the following –
  • 10* annual premium
  • 0.5*annual premium*policy tenure

Conclusion

SBI Life’s eWealth Plan is an online unit linked plan with an automatic investment strategy. Thus, if you want market-linked returns and are not very investment savvy, you can invest in the plan for automated investments. You would earn the highest possible returns and your investment risks would also be minimised through the automatic allocation strategy adopted by the plan.


FAQs

SBI Life’s eWealth Plan allows you to pay premiums annually or monthly.


The premium which you pay for the plan is allowed as a tax-free deduction from your taxable income under Section 80C. The maximum deduction which you can claim is limited to INR 1.5 lakhs. Moreover, the benefit received under the plan is also allowed as a tax-free income under Section 10 (10D).


Yes, surrender is available under the plan after the first five years have been completed. If the plan is surrendered, the available fund value is paid and the coverage is terminated.


If you discontinue premium payments before the first five years have been completed, the fund value would be transferred to the discontinued policy fund. It would remain in that fund till the first five years of the plan are completed. Applicable charges would be deducted and when the lock-in period is over, the available fund value would be paid. So, no, the plan cannot be surrendered within the first five years.


One withdrawal is free per policy year. In case of additional withdrawals, a flat charge of INR 100 would be payable per withdrawal.


Yes, a free-look period is allowed under the plan after you have bought it. The available free-look period is 30 days within which the policy can be cancelled if required.


The available grace period is 30 days if you pay premiums annually and 15 days for monthly premiums.