SBI Life – Saral Maha Anand Plan

SBI life insurance is one of the leading players in an Indian insurance market. It is a joint venture between India’s largest bank, State Bank of India and BNP Paribas Cardif, a global insurance expert. SBI life offers a comprehensive range of insurance as well as savings products for various customer segments. Starting from a pure protection plan to unit-linked insurance products and wealth creation plans, products offered by SBI life insurance Company for individual customer segments are versatile.

What is a unit-linked insurance plan?

As the name suggests unit-linked insurance plans are the hybrid product that provides for risk cover and opportunity to invest in the market. A portion of the premium paid will be invested in funds (a combination of equity and debt) chosen by you depending on your risk profile and long-term goal. As funds are managed by professional experts, there is no hassle of tracking the investment. Basically, ULIP is a long-term investment product with the dual benefit of life cover and wealth creation.

SBI Life’s Saral Maha Anand Plan

Saral Maha Anand is a non-participating unit linked insurance plan that offers both life cover and capital appreciation. Like any other unit-linked insurance plan, Saral Maha Anand also comes with a five year lock-in period before which withdrawal or surrender of policy is not allowed.

Features of SBI Life’s Saral Maha Anand

  • No medical examination needed
  • Life insurance cover to secure the family’s financial future in the event of an untimely death
  • Option to choose SBI’s accidental death benefit rider (at an extra cost of the premium)
  • Three investment fund choices. Premium post deduction of premium allocation charges will be invested in the fund option chosen
  • No premium allocation charges from 11th year onwards
  • Guaranteed additions of up to 30% of annualised premium on completion of specific duration.

Benefits of SBI Life’s Saral Maha Anand

  • Flexibility: Depending on your risk appetite, market situations and changing investment needs, the plan allows you to switch from one fund another among the three fund options available. The plan also gives you the flexibility to reduce the premium from 2nd year onwards.
  • Liquidity: Though it is a long-term plan, Saral Maha Anand offers you liquidity by allowing you to partially withdraw your fund value from 6th year onwards.
  • Simplicity: Hassle-free joining process without any medical examination
  • Death benefit: In the event of the death of the policyholder, higher of the following is paid to the nominee
    • Sum assured
    • 105% of the total basic premium paid till date
    • Fund value
  • Maturity benefit: If the policyholder survives until the end of the policy term, the fund value is paid as maturity benefit. However, there is a settlement option offered in the plan wherein maturity benefit can be taken in instalments instead of taking it as Lumpsum.
  • Additional rider benefit: Accidental death benefit rider can be availed at an extra cost to avail additional sum assured which will be paid out if the policyholder dies in an accident.
  • Tax benefit: You can also avail tax benefits under Section 80 C of the Income Tax Act, 1961 for the premiums paid. Also, the maturity benefits are exempted from income tax under Section 10 (10D) of the Income Tax Act.

Who should buy SBI Life’s Saral Maha Anand?

SBI’s Saral Maha Anand is suitable for every type of long-term investor seeking some risk cover as well as capital appreciation by earning some market-driven returns. As there are three different funds to choose from, you can invest according to your risk profile.

Eligibility criteria for SBI Life’s Saral Maha Anand plan

Eligibility conditions Minimum Maximum
Entry age 18 years 55 years
Maturity age - 65 years
Policy Term 10 years/15 years/20 years
Premium payment frequency Yearly/half-yearly/quarterly/monthly (only through electronic clearing system or standing instruction mode
Premium paying term Same as the policy term

Premium range depending on payment frequency

Payment frequency Premium range (in Rs.)
Minimum Maximum
Yearly 15,000 29,000
Half-yearly 9,500 14,500
Quarterly 5,500 7,200
Monthly 2,000 2,400

Sum assured range depending on the age of the policyholder

Age Sum assured range (in Rs.)
Minimum Maximum
< 45 years 10 times annualised premium 7 times annualised premium
≥ 45 years 20 times annualised premium 20 times annualised premium

Please note: Total sum assured for SBI’s Saral Maha Anand, Maha Anand II and Maha Anand is restricted to INR. 7,50,000.

Fund options available in SBI’s Saral Maha Anand for investment

Fund type Allocation in assets Risk profile
Equity and equity related instruments Debt instruments Money market instruments
Equity Fund 80%-100% 0%-20% 0%-20% High
Balanced fund 40%-60% 20%-60% 0%-40% Medium
Bond fund 0% 60%-100% 0%-40% Low-medium

Exclusions in SBI’s Saral Maha Anand Plan

If the life assured commits suicide, within one year of the date of commencement of policy or from the date of revival, the fund value as on the date of intimation of death will be paid out and all the other benefits offered in the policy will cease.

Documents required for buying SBI Life’s Saral Maha Anand Plan

  • Proof of identity: PAN card/Passport/Driving license/Voter ID card etc.
  • Proof of address: Aadhaar card/ Bank account statement or Utility bills etc
  • Age proof: Birth certificate/PAN card/Passport etc.
  • Proof of income: IT returns/ salary slip/ employer’s certificate etc

Surrender of SBI life’s Saral Maha Anand plan

You can surrender your policy anytime during the policy term. However, if you surrender within five years of the lock-in period, lock-in condition would get applicable. You fund value after deduction of discontinuation charges if any will be transferred to the ‘discontinued policy fund’ which will earn a minimum 4% p.a. interest rate. And the fund value will be paid out on completion of the 5th policy year. Life cover and rider cover if any in the policy will cease to apply. If you surrender your policy after completion of five years, the fund value will be paid out immediately.

Discontinuance of premium

If you discontinue premium payment, you will have three options :

    1. Revive the policy within two years of discontinuance by paying all the due premiums
    2. Completely withdraw from the policy
    3. Convert the policy into paid-up policy (after paying five years full premium)

There are two scenarios to be taken into consideration while making a choice.

Discontinuance of premium during the first five years of policy

  • Fund value on the date will be disinvested and credited to Discontinuance Policy Fund net of charges
  • If you do not revive the policy within two years from the date of discontinuance, then discontinuance fund value as on the first business day of 6th policy year would be paid to you and the policy will get terminated.

Discontinuance if premium after five years of policy

  • If you do not revive the policy within two years from the date of discontinuance, then the fund value as on the end of revival period would be paid to you and the policy will get terminated.

Discontinuance charges

These charges are expressed as a percentage of annualised premium or fund value.

Year of discontinuance For annual premium up to INR. 25,000 For annual premium above INR. 25,000
1st year Lower of 20% * (annualised premium or fund value) subject to a maximum of INR. 3,000 Lower of 6% * (annualised premium or fund value) subject to a maximum of INR. 6,000
2nd year Lower of 15% * (annualised premium or fund value) subject to a maximum of INR. 2,000 Lower of 4% * (annualised premium or fund value) subject to a maximum of INR. 5,000
3rd year Lower of 10% * (annualised premium or fund value) subject to a maximum of INR. 1,500 Lower of 3% * (annualised premium or fund value) subject to a maximum of INR. 4,000
4th year Lower of 5% * (annualised premium or fund value) subject to a maximum of INR. 1,000 Lower of 2% * (annualised premium or fund value) subject to a maximum of INR. 2,000
5th year NIL NIL

Loan facility on SBI Life’s Saral Maha Anand Plan

There is no loan facility available on SBI Life’s Saral Maha Anand Plan.

Conclusion

SBI Life’s Saral Maha Anand is a simple unit-linked insurance product that helps in building wealth for long-term future along with providing life protection during the policy term. With simple joining process, excellent plan features and guaranteed additions, SBI life’s Saral Maha Anand plan offers convenience and flexibility along with financial security and protection.


FAQs

Yes. There is a ‘free look period’ of 15 days for policies bought offline and 30 days for policies bought online or distance marketing mode. Within the free look period, you can cancel your policy in case you are not satisfied with the terms and conditions of the policy. However, it’s important to state the reason for cancellation.


Two switches are free in the policy term. When the number of switches exceeds, INR.100 will be charged per switch.


Premium allocation charges are levied as a percentage of the regular premium. Once these charges are deducted, the allocation of fund units is made. Details of premium allocation charges are mentioned below for SBI life’s Saral Maha Anand plan.

Policy year Premium allocation charges
1 6.25%
2 3.75%
3 3.75%
4 3.75%
5 3.75%
6 3%
7 3%
8 3%
9 3%
10 3%
11 th year onwards 0%