SBI Life - Saral Insure Wealth Plus Plan

SBI Life Insurance Company is founded in the year 2001 as a bancassurance company. It is an amalgamation of Indian banking giant, State Bank of India and an international insurance group, BNP Paribas Cardif. With great service and good claim settlement ratio SBI life insurance company has been awarded as ‘’Life insurance company of the year’’ in 2016. With many such awards and recognition, SBI life insurance has emerged as a leading insurer in India. There are many products offered by the company to cater to the varying needs of its customers.

What are Unit Linked Investment Plans?

Unit-linked investment plans are insurance products with a savings element. Unlike traditional insurance cum saving (endowment plans) plans, unit-linked investment plans offer market-linked returns to the investors. Basically, ULIP is a simple and flexible product with a transparent structure. ULIP plans can be with profit or without profit plans.

SBI Life – Saral Insure Wealth Plus Plan

SBI life’s Saral Insure Wealth Plus is a non-participating unit linked insurance plan that helps you save money every month for a longer duration to maximize wealth for future goals. This Easy Monthly Insurance (EMI) plan from SBI offers you multiple features that help you reap the maximum benefits out of your investment.

Features of SBI Life’s Saral Insure Wealth plans

  • Takes a disciplined approach with monthly premiums to create wealth efficiently over the long-term period
  • Regular pay-outs by way of systematic monthly withdrawals to meet your liquidity requirements
  • Loyalty additions from the 6th year onwards for boosting the fund value
  • Partial withdrawal facility from 6th year onwards to meet urgent needs
  • Eight fund options to choose from for investment

Benefits of SBI Life’s Saral Insure Wealth Plans

  • Reliability : If you stay invested for 6 years, you will be rewarded with loyalty additions at the end of the 6th policy year and every year thereafter till the end of the selected policy term if the policy stays in force. Let’s take a look at loyalty additions year wise.
Last day of the policy year Loyalty addition (% of the average fund value)
1-5 Nil
6-10 0.2%
11-25 0.3%
  • Flexible : The plan offers many flexible options :
    • You can choose the amount and duration in systematic monthly withdrawals. Rs. 5,000 is the minimum amount with a minimum period of 6 months.
    • The facility of switching from one fund to another is available at any point of time during the policy term with a minimum of Rs. 5,000.
    • Premium redirection facility is made free from 2nd year onwards.
  • Liquidity : To meet your liquidity requirement, you can make use of below features :
    • Systematic monthly withdrawal option. Up to 1.25% of the fund value can be withdrawn monthly for a duration of your choice.
    • Partial withdrawals can be made from 6th year onwards. 10 partial withdrawals are allowed in case of a policy with a 10-year term. If the term is more than 10 years, 15 partial withdrawals are allowed. Up to 15% of your fund value can be withdrawn.
  • Death benefit : Depending on the age of the life assured at the time of eventuality, death benefits are paid out.
    • For life assured with entry age below 8 years :
      • In case the life assured dies before the risk commencement date, the fund value as on the date of death intimation would be paid out.
      • In case the life assured dies after the risk commencement date, the death benefits as per the policy, which is higher of fund value or sum assured is paid out.
    • For life assured with an entry age of 8 years and above
      • The higher of the below three is paid out as a death benefit to the nominee
        • Sum assured
        • Fund value as on date of intimation
        • 105% of total premiums paid till the date of death
    • If the policyholder dies when the life assured is a minor
      • In case of policyholder’s demise for the policies of minor, death benefits are not paid on an immediate basis. The new policyholder would get appointed to continue the policy.
  • Maturity benefit : Fund value is paid in a lump sum as maturity benefit on completion of the policy term. With two months prior notice from the date of maturity, you can opt for settlement option which helps you receive policy benefits in monthly investments. In case of minor life assured, policy benefits will vest automatically in the life assured only on attaining 18 years of age.
  • Tax benefits : Premium paid by you towards SBI life’s Saral Insure Wealth Plus qualifies for tax deduction under Section 80C of the Income Tax Act. And the benefits received are exempted from income tax as per Section 10 (10D) of the IT Act.

Eligibility Criteria for SBI Life’s Saral Insure Wealth Plans

Eligibility conditions Minimum Maximum
Entry age 0 years 30 days 55 years
Maturity agee 18 years 65 years
Policy term 10 years 25 years
Plan type Regular premium
Premium payment term Same as the policy term
Premium payment frequency Monthly
Premium range (in multiples of Rs. 100) Rs. 8,000 No limit
Sum assured range Annualized basic premium*10 or Annualized basic premium*0.5*policy term, whichever is higher

Please note :

  • If the age at entry is below 8 years, the risk would commence on completion of the 1st policy year. If the age at entry is 8 years and above, the risk would commence on an immediate basis
  • If the life assured is a minor, the policyholder can be parents, grandparents or legal guardians depending on the underwriting policy
  • Choose an appropriate policy term in case of minor life assured so that to receive the maturity benefits, the life assured turns into major.

Investment fund options in SBI Life’s Saral Insure Wealth Plus plan

Fund options Asset allocation (in %) Risk profile
Equity & equity related instruments Debt instruments Money market instruments
Pure fund 80%-100% - 0%-20% High
Midcap fund 80%-100% 0%-20% 0%-20% High
Bond optimiser fund 0%-25% 75%-100% 0%-25% Low to medium
Balanced fund 40%-60% 20%-60% 0%-40% Medium
Corporate bond fund - 70%-100% 0%-30% Low to medium
Equity optimiser fund 60%-100% 0%-40% 0%-40% High
Equity fund 80%-100% 0%-20% 0%-20% Medium to high
Growth fund 40%-90% 10%-60% 0%-40% Medium to high
Sum assured range Annualized basic premium*10 or Annualized basic premium*0.5*policy term, whichever is higher

Who can buy SBI Life’s Saral Insure Wealth Plus plan?

Any long-term investor looking for investment options that can deliver a market-related return to maximise capital along with giving financial protection to family In case of eventuality can consider this as an ideal option. It suits investor of every risk profile (low to high) with 8 different fund options.

When should you buy SBI Life’s Saral Insure Wealth Plus plan?

Investment into this plan can be done anytime if all the eligibility criteria are met. As there are eight fund options to invest in, investment is suitable for any type of investors with a varying risk profile in any market scenario.

Documents required for buying SBI Life’s Saral Insure Wealth Plus plan

Age proof : Birth certificate/passport/school certificate etc
Income proof : Salary certificate/IT return
Identity proof : PAN card/Aadhaar card/passport/Voter’s ID card
Address proof : Bank account statement/electricity bill etc.

Discontinuance of premium in SBI Life’s Saral Insure Wealth Plus plan

If you discontinue premium payment within the first five years during the lock-in period, you can revive the policy within two years from the date of discontinuance. If revival is not done, the value in the discontinued fund will be paid out on the 1st working day of the 6th policy year and the policy will be terminated. If you discontinue premium payments after five years of the policy, the policy is converted to paid-up policy which will continue to offer you all the benefits at reduced value till the date of maturity. You can also revive the policy within two years from discontinuance date. If revival is not done, the fund value will be paid out on the date of maturity.

Surrender of SBI Life’s Saral Insure Wealth Plus plan

If you surrender the policy within the first five years of the policy, your fund value as on that date will be disinvested and transferred to discontinued policy fund. Benefits in the policy will cease. But, the surrender proceeds will be paid on the 1st business day of the 6th policy year. If you surrender the policy after five years, surrender proceeds are paid immediately.

Loan facility in SBI Life’s Saral Insure Wealth Plus plan

Loan facility is not available in SBI Life’s Saral Insure Wealth Plus plan

Exclusions in SBI Life’s Saral Insure Wealth Plus plan

If the life assured, commits suicide within one year from the date of policy inception or from the date of revival, then the fund value as on date of death intimation is payable to the beneficiary and the policy shall be void.

Conclusion

SBI Life’s Saral Insure Wealth Plus plan is a monthly savings plan that helps you make a disciplined investment for wealth creation along with having life protection. As it is a market-linked investment with many flexible features and various fund option to invest in, helps you maximise your savings by surviving the ups and downs of the market very efficiently.


FAQs

Yes. Both partial withdrawal and systematic monthly withdrawal option can be availed simultaneously.


Yes. The policy can be revived within the revival period of 2 years from the date of discontinuance.


Premium allocation charges are deducted as a percentage of premium which will be deducted before allocation of fund units.

Policy year Premium allocation charges
1 8%
2-5 5.5%
6-10 3.5%
11-25 3%