SBI Life – Smart Elite Plan

Founded in the year 2001, SBI Life Insurance Company is a joint venture between India’s largest bank, State Bank of India and a French multinational bank and financial services company, BNP Paribas Cardif. SBI life insurance offers a wide range of insurance products for groups and individual customers. With approach and new age products, SBI life has been recognised and awarded. Along with insurance products, SBI life also offers many investment-oriented products that help in wealth creation.

What are Unit Linked Insurance Plans (ULIPs)?

Unit-linked insurance plans are integrated products that offer the best of both the worlds-investment and insurance. Part of premium paid gets invested into various market investments like equity, debt and money market instruments through various fund options offered by the particular plan. Fund type can be chosen as per your goal and risk profile. ULIPs are meant for long-term investment goals. ULIP plans can be with profit plans or without profit plans.

SBI Life’s Smart Elite Plan

Smart elite is a non-participating unit linked insurance plan that is specifically designed for High Net-worth individuals (HNIs). This plan can be availed as a single premium or limited pay policy that only provides your family protection in the event of death but also helps you maximise your savings over the long-term through market-linked returns. Like any other unit-linked insurance plan, Smart Elite also comes with a five year lock-in period during which money cannot be withdrawn or the surrender benefit cannot be availed.

Features of SBI Life’s Smart Elite Plan

  • The convenience of limited pay or single pay
  • No premium allocation charges from 6th year onwards which helps in enhancing fund value
  • Protection cover can be chosen in two variants-gold and platinum
  • Four fund option to choose from depending on your risk profile and return expectation
  • Option to increase/decrease your sum assured from the 6th year onwards
  • Inbuilt benefit cover for accidental death and accidental total and permanent disability.

Benefits of SBI Life’s Smart Elite Plan

  • Flexibility: Smart Elite policy gives the flexibility to invest in single premium mode or in limited premium mode. There is also the flexibility to switch from one fund to fund depending on your changing investment needs.
  • Liquidity: The plan also offers liquidity by allowing partial withdrawal from 6th year onwards. Up to 15% of the fund value can be withdrawn.
  • Death benefit: Smart Elite plan offers protection to the family in the event of the untimely demise of the policyholder. Benefits vary depending on the protection option chosen at the time of purchasing the policy
    • Gold option :
      In the event of death, higher of the sum assured or the fund value is payable to nominee subjected to the minimum benefit of 105% of total premium paid as on the date of intimation of the death claim.
    • Platinum option :
      In the event of death, fund value plus sum assured is payable to nominee subjected to the minimum benefit of 105% of total premium paid as on the date of intimation of the death claim.
  • In-built benefits: In case of death due to an accident, accidental death benefit amount (basic sum assured) will be paid. Also, the benefit (basic sum assured) will be paid if the life assured suffers a total and permanent disability due to an accident. But, benefit in this will be paid out in 10 equal instalments. Please note, the upper limit of benefit is capped at INR. 50 lakhs and the benefit is only paid once for whichever event occurs first.
  • Maturity benefit: Fund value will be paid out on policy maturity if the policyholder survives the policy term. There is also settlement option with which you can get benefits paid out in periodic instalments.
  • Tax benefit: Income tax benefits and exemptions can be enjoyed under Section 80C of the IT Act for the premium paid and under Section 10 (10D) for the benefits received.

Eligibility Criteria for SBI Life’s Smart Elite Plan

Eligibility conditions Minimum Maximum
Entry age 18 years 60 years
Maturity age - 65 years
Policy Term 5 years 20 years
Premium payment frequency Single for single premium policies
For limited pay- yearly/half-yearly/quarterly/monthly ( three months premium to be
paid in advance and monthly premium payment can only be made through ECS,
standing instruction, direct debit and credit card.
Premium Paying Term 5 years 10 years
Plan type Limited premium/single premium

Premium range depending on plan type and premium payment frequency

Plan Type Premium payment frequency Premium range (In Rs.)
Minimum Maximum
Single premium 2,00,000 No limit
Limited Premium Yearly 1,50,000 No Limit
Half-yearly 75,000
Quarterly 37,500
Monthly 12,500

Sum assured range depending on plan type and age of the policyholder

Plan Type Age Premium range (In Rs.)
Minimum Maximum
< 45 years 1.25 times the single premium 5 times the single premium
Single premium ≥ 45 years 1.10 times the single premium 5 times the single premium
< 45 years 10 times the annualized premium 20 times the annualized premium
Limited premium ≥ 45 years 7 times the annualized premium 20 times the annualized premium

Investment fund options in SBI Life’s Smart Elite policy

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

Who should buy SBI Life’s Smart Elite policy?

SBI Life’s Smart Elite policy is suitable for investors looking for investments that offer wealth creation with greater flexibility along with life protection benefit. Investors looking for one-time large ticket size investments can also consider this.

When should one- buy SBI Life’s Smart Elite policy?

Anyone between 18-60 years age group can buy SBI Life’s Smart Elite plan anytime. As the plan offers six different funds of varying equity and debt combinations for investment, one can make a choice of funds depending on the market condition, individual goals and preferences.

Documents required for buying SBI Life’s Smart Elite policy

  • PAN Card is mandator
  • Identity proof: PAN card/Aadhaar card/Driving license/Passport etc.
  • Age proof: School certificate/Passport/Birth certificate/driving license etc
  • Address proof: Bank account statement/Electricity bill
  • Income proof: Employer certificate/IT return

Discontinuance of premium in SBI Life’s Smart Elite policy

If you discontinue the premium, SBI life’s Smart Elite policy can completely withdraw or revive or can be converted into paid-up policy depending on the below two scenarios

  • Discontinuance of premium during the first five years of policy
    • Fund value as on date will be transferred to discontinuance policy fund minus charges if any
    • The policy can be revived within two years from the date of discontinuance.
    • If revival is not done, the policy will be completely withdrawn and the discontinuance fund value will be paid out on the first business day of the 6th policy year.
  • Discontinuance of premium after the five years of policy
    • The policy can be revived within two years from the date of discontinuance
    • If revival is not done, the policy is converted into paid-up policy (if the five-years year premiums are paid). Fund value as on date of maturity would be paid out.

Discontinuance charges

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

Year of discontinuance For single premium policies For limited premium policies
1 Lower of 1% * (single premium or fund value) subject to a maximum of INR. 6,000 Lower of 6% * (annualised premium or fund value) subject to a maximum of INR. 6,000
2 Lower of 0.5% * (single premium or fund value) subject to a maximum of INR. 5,000 Lower of 4% * (annualised premium or fund value) subject to a maximum of INR. 5,000
3 Lower of 0.25% * (single premium or fund value) subject to a maximum of INR. 4,000 Lower of 3% * (annualised premium or fund value) subject to a maximum of INR. 4,000
4 Lower of 0.1% * (single premium or fund value) subject to a maximum of INR. 2,000 Lower of 2% * (annualised premium or fund value) subject to a maximum of INR. 2,000
5 NIL NIL

Surrender of SBI Life’s Smart Elite policy

If the policy is surrendered within the first five years of the policy, your fund value as on date of surrender fewer discontinuance charges will be transferred to ‘discontinued policy fund’ which will earn a minimum of 4% p.an interest. Policy benefits will cease to apply from then on. The fund value will be paid out on the first business day of the 6th policy year. If the surrender is made after five years of the policy, the fund value will be paid immediately.

Loan facility in SBI Life’s Smart Elite policy

There is no loan facility available in SBI Life’s Smart Elite policy.

Exclusions in SBI Life’s Smart Elite policy

Suicide exclusion: If the life assured commits suicide within a year of commencement of policy or from the date of revival, fund value as on date of death intimation would be paid and all the policy benefits will cease.

Conclusion

With great flexibility, competitive cost structure and diverse fund options, SBI life’s Smart Elite a great option for building wealth over the long-run with life insurance benefit. As the plan has a high premium bucket with two different options to avail life cover, HNI’s can avail the dual benefit of wealth creation and life protection.


FAQs

Yes. You can return or cancel the Smart elite policy within the free look period. For offline policies, the free look period is 15 days and 30 days for online bought policies. You can return the policy with the reason stated if you are not satisfied with the policy terms and conditions.


Limited premium plans offer you the benefit of enjoying the life cover for a longer period by making payment for a shorter period. You also stay invested for long. In SBI Life’s Smart Elite policy, you make payment for 5/10 years but can stay invested till 20 years.