SBI Life – Smart Power Insurance Plan

SBI Life Insurance Company is a joint venture between State Bank of India, India’s largest bank and BNP Paribas Cardif, a leading global insurer.SBI life insurance offers many groups and individual insurance products at a competitive rate. With many attractive new age plans, SBI life helps its customer to find the right product as per their specific needs.

What are Unit Linked Insurance Plans?

Unit-linked insurance plans are insurance plus investment tools that help you protect your family from uncertainties along with maximizing your wealth through investing in capital markets. These plans invest part of your money into various funds to get you market-driven returns. ULIPs can be participating (with profit) and non-participating (without profit) plans.

SBI Life – Smart Power Insurance Plan

SBI life’s smart power insurance is also a unit-linked insurance plan with non-participating nature. The plan is offered at a reasonable premium with multiple fund choices and plan types to invest in. It’s a long-term investment product with a five year lock-in period that can be considered as a tool for achieving future goals.

Features of SBI Life – Smart Power Insurance Plan

  • Two fund strategies with 7 investment fund options to invest in
  • Two plan options to choose for life cover
  • Inbuilt accelerated total and permanent disability benefit

Benefits of SBI Life – Smart Power Insurance Plan

  • Flexibility : SBI life’s smart power insurance offers many flexible options
    • Switching from one investment fund to another depending on market conditions and your changing needs. Two switches are free in a policy year.
    • From 2nd year onwards, you can redirect your premium among the seven investment fund options available. One premium redirection is free per year.
    • Two free partial withdrawals are allowed in a policy year from 6th year onwards.
    • Your investment portfolio can be shifted from one fund strategy to another (among trigger fund and smart fund option) at any policy anniversary date.
  • Death benefits : Higher of the sum assured or the fund value is paid out to the nominee in case of death of the policyholder during the policy term.
  • In-built benefits : Accelerated total and permanent disability benefits cover offered in the policy advance the benefits to the life assured to cover hospitalisation cost in case he/she suffers total permanent disability due to an injury or illness.
  • Maturity benefits : Fund value of the policy is paid out to the policyholder on maturity if he/she survives the policy term. Fund value depending on the NAV (net asset value) of the fund in which the investment is made.
  • Tax benefits : For the premium paid and the benefits received, tax deduction and exemption benefits can be enjoyed under Section 80C and Section 10 (10D) of the Income Tax Act, respectively.

Life cover options available in Smart Power Insurance

At the time of inception of the policy, you can choose any of the below life cover options

  • Level cover option

    In this, the sum assured chosen by you remains the same throughout the policy term.

  • Increasing cover option

    There will be an automatic increase in sum assured chosen by you at the simple rate of 10% from 6th year onwards for every 5 years thereafter. However, an increase in sum assured calls for no medical examination and an additional underwriting.

Type of funds is available for investment in Smart Power Insurance Plan

SBI life’s smart power insurance comes in two fund strategies with seven different investment fund option to choose from.

You can choose to keep your portfolio in one of the below options

  • Trigger fund option

    This is based on ‘’buy low, sell high’’ strategy. Initially, your premium will be allocated in 80:20 proportion to equity fund and bond fund respectively. Depending on the market movement, rebalancing will be done on the basis of the 15% downward/upward trigger.

  • Smart fund option

    This particular option gives you the freedom to choose from all the seven fund options available based on your risk-return profile. You can make your own combination.

Investment fund options available are

Fund options Asset allocation Risk Profile
Equity & equity related investments Debt instruments Money market instruments
Equity fund 80%-100% 0%-20% 0%-20% High
Top 300 fund 60%-100% - 0%-40% High
Equity optimiser fund 60%-100% 0%-40% 60%-40% High
Growth fund 40%-90% 10%-60% 0%-40% Medium to high
Balanced fund 40%-60% 20%-60% 0%-40% Medium
Bond fund - 60%-100% 0%-40% Low to medium
Money market fund - 0%-20% 80%-100% Low

Eligibility Criteria for SBI Life – Smart Power Insurance Plan

Eligibility conditions Minimum Maximum
Entry age 18 years 45 years
Maturity age - 65 years
Policy term 10 years 30 years
Premium payment frequency Yearly/half-yearly/quarterly/monthly
Premium payment term Same as the policy term
Plan type Regular premium
Sum assured range Higher of {(10*AP) or (0.50*term*AP)} 20 * AP, but not more than INR.1 cr.

(Please note : ‘AP’ means annualized premium)

Premium range depending on the premium payment frequency

Premium payment frequency Premium range (in Rs.)
Minimum Maximum
Yearly 15,000 No limit
Half-yearly 9,500
Quarterly 5,500
Monthly 2,000

Who can buy SBI Life – Smart Power Insurance?

Any individual investor looking for investment options that can provide financial security and long-term wealth maximization can consider buying SBI life –smart power insurance. It is suitable for long-term investors of any risk profile as there are fund options to fit into every investor type. However, it’s important to meet the eligibility conditions for investing.

When should you buy SBI Life’s Smart Power Insurance?

Anytime is a good time to buy SBI Life’s smart power insurance as long as your goals are set right. You can choose the investment fund in the plan depending on your goal, risk appetite and market situations.

Documents required for buying SBI Life’s Smart Power Insurance

  • PAN card is mandatory
  • Identity proof : Aadhaar card/PAN Card/Passport/Driving license etc
  • Address proof : Bank Statement/latest electricity bill etc
  • Age proof : Birth certificate/school certificate/ Passport etc
  • Income proof : Employer certificate/IT return

Discontinuance of premium in SBI Life’s Smart Power Insurance

If you discontinue the premium payment, you can revive the policy or completely withdraw it or convert the policy into paid-up policy. There are two scenarios in this.

  1. If the premium is discontinued within the first five years of policy
    1. Fund value as on date will be disinvested and transferred to ‘discontinued policy fund’ which invests in money market instruments and government securities.
    2. The policy can be revived within two years from the date of discontinuance.
    3. If revival is not done, the discontinued policy fund value will be paid out on the 1st business day of the 6th policy year.
  2. If the premium is discontinued after five years of policy
    1. The policy can be revived within two years. If revival is not done, the policy is converted into paid-up value status and the fund value will be paid out on the date of maturity.

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
1 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
2 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
3 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
4 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
5 onwards Nil Nil

Surrender of SBI Life’s Smart Power Insurance

Surrender can be initiated anytime during the policy term. If the surrender is initiated within the first five years, fund value as on date is transferred to discontinued policy fund and the proceeds are paid only on the 1st working day of the 6th policy year. If surrender is initiated after five years of the policy, the surrender value is paid immediately.

Loan facility in SBI Life’s Smart Power Insurance

Loan facility is not available for this plan.

Exclusions in SBI Life’s Smart Power Insurance

If the life assured, sane or insane, commits suicide within the first year of commencement of policy or from the date of policy revival, the policy shall be void. Only fund value as on date of death intimation is paid to the beneficiary.

Conclusion

SBI Life’s smart power insurance is a competent product that offers investment and insurance benefit under one umbrella with greater flexibility, transparent charge structure and liquidity. With varying fund options and strategies, the plan is suitable for the investor of diverse goals and risk appetite.


FAQs

Yes. The policy provides 15 days grace period for monthly premiums and 30 days for other modes of premiums.


Premium allocation charges are deducted as a percentage of premium before the allocation of units. Here are the details of the charges.

Policy year Premium allocation charges (% of premium)
1 5.75%
2 - 5 4%
6-7 3.5%
8 2.5%
9 2%
10th onwards 1.5%

Fund management charges are levied for managing the investment in funds. These charges are levied as a percentage of the value of the assets before arriving at the net asset value of the fund. Here are the details of the charges.

Fund name Fund management charges (per annum)
Equity fund 1.35%
Top 300 fund 1.35%
Equity optimiser fund 1.35%
Growth fund 1.35%
Balanced fund 1.25%
Bond fund 1%
Money market fund 0.25%
Discontinued policy fund 0.50%