SBI Life – Smart Privilege Plan

SBI Life Insurance Company is a public sector life insurance company that is founded in the year 2001. It is a Joint venture between State Bank of India and BNP Paribas Cardif that has driven the best domestic values and global insurance expertise. With its innovative product offerings, SBI life insurance has received many awards and recognition for its contribution to the insurance industry.

What are Unit Linked Insurance Plans?

Unit-linked insurance plans are the savings cum protection plans offered by insurance companies. Unlike traditional endowment insurance plans, unit-linked insurance plans have high potential to deliver good returns over the long-term as it allows you to invest in the capital market through various fund options. ULIPs take care of your protection, investment and tax saving requirements. ULIP products come with a five year lock-in period that inculcates disciplined investment habits.

SBI Life – Smart Privilege Plan

SBI life’s smart Privilege is a non-participating (without profit) unit-linked insurance plans that are specially designed for UHNIs (Ultra High Net-worth Individuals). It helps you grow your wealth by investing a major part of your premium in to fund of your choice along with providing you protection cover during eventualities. The plan offers you multiple features to meet your long-term goals depending on your risk-return profile and also to meet liquidity requirement.

Features of SBI Life’s Smart Privilege Plan

  • Convenience to purchase the policy in three plans- regular premium, limited pay or single pay
  • Loyalty additions to boost your fund values from 6th year onwards
  • Wide range of fund options to invest in with unlimited free switches
  • No policy administration charges
  • No premium allocation charges from 6th year onwards

Benefits of SBI Life’s Smart Privilege Plan

  • Flexibility benefit: There are many flexibilities offered in the plan
    • Switch from one fund another between 8 fund options given freely for unlimited times.
    • Premium redirection from 1st of the policy itself. Unlimited free premium redirections are allowed throughout the policy term.
  • Liquidity benefit: To meet your liquidity needs, you can make partial withdrawals from 6th year onwards. Two free partial withdrawals are allowed in a policy year to the maximum of 15 (depends on the term of the policy) partial withdrawals during the policy term. Partial withdrawals are not allowed if the fund value is less than 50% of the total premium paid.
  • Life cover benefit: Higher of the fund value or sum assured is payable as death benefit upon receiving death intimation.
  • Maturity benefit: Fund value is payable on maturity if the policyholder survives the policy term. The lump sum benefits can also be taken in periodic instalments with settlement option available.
  • Tax benefit: For the premium paid, tax deduction can be claimed under Section 80C of the Income Tax Act. Benefits received are tax-free with applicable conditions under Section 10(10D) of the IT Act.

Eligibility Criteria for SBI Life’s Smart Privilege Plan

Eligibility conditions Minimum Maximum
Entry age
Regular premium policies
Limited premium policies
Single premium policies

8 years
8 years
13 years

55 years
Maturity age 18 years 70 years
Policy term
Regular and limited premium policies
Single premium policies

10

5 years

30 years
Plan type Regular premium/limited premium/single premium
Premium payment term
Regular premium policies
Limited premium policies
Single premium policies

Same as policy term
5 years
One-time payment


Policy term less 1 year
Premium payment frequency Single/yearly/half-yearly/quarterly/monthly (3 months premium to be paid in advance in monthly mode and payments allowed in only ECS, direct credit, SI, credit card and debit card

Premium range depending on the premium payment frequency and plan type

Plan type Premium payment frequency Premium range (in Rs.)
Minimum Maximum
Yearly 6,00,000
Regular/limited premium policies Half-yearly 3,00,000 No Limit
Quarterly 1,50,000
Monthly 50,000
Single premium policies - 6,00,000 No limit

Sum assured range depending on age and plan type

Plan type Age Sum assured range (in Rs.)
Minimum Maximum
Regular/limited premium policies All ages Higher of (annualized premium*10) or (annualized premium*policy term *0.5)
Single premium policies < 45 year Single premium*1.25
≥ 45 years Single premium *1.10 Single premium*1.25

Please note: If the life assured is minor, choose the policy term appropriately so that the maturity benefits are paid out after attaining majority.

Fund options available for investment in SBI life’s smart privilege plan

Fund options Asset allocation (in %) Risk profile
Equity and equity related instruments Money market instruments and cash Debt instruments
Top 300 fund 60%-100% 0%-40% - High
Balanced fund 40% -60% 0%-40% 20%-60% Medium
Bond fund - 0%-40% 60%-100% Medium
Equity optimiser fund 60%-100% 0%-40% 0%-40% High
Equity fund 80%-100% 0%-20% 0%-20% High
Growth fund 40%-90% 0%-40% 10%-60% Medium to high
Pure fund 80%-100% (only in equities) 0%-20% - High
Midcap fund 80%-100% (only in equities) 0%-20% 0%-20% High

Who should buy SBI Life’s Smart Privilege plan?

SBI Life’s Smart Privilege Plan is designed for HNI’s. Hence, HNI investors looking for tax-efficient investment opportunities to increase their finances along with availing life protection can buy SBI Life’s smart privilege plan.

When should you buy SBI Life’s Smart Privilege plan?

SBI Life’s smart privilege plan is a ULIP product which is meant for long-term. Investing early for a longer tenure can yield you greater returns on your investment. For any of your future goals like retirement, children education or dream vacation, making an investment advance is a wise way. You can anytime in SBI Life’s smart privilege plan based on your goal as there are eight different fund options to choose from.

Documents required for buying SBI Life’s Smart Privilege Plan

  1. Application form
  2. PAN card is mandatory
  3. KYC documents such as identity proof (Aadhaar card/PAN card/Passport/Driving license etc) and address proof (latest electricity bill/bank account statement etc) and age proof (school certificate/birth certificate/ Passport etc.
  4. Income proof: salary certificate/income tax return

Discontinuance of premium in SBI Life’s Smart Privilege Plan

If you discontinue the premium payment in SBI Life’s smart privilege plan, there are two scenarios to it.

  • If you discontinue premium payment in the first five years:
    Your fund value will disinvest and transferred to a general fund called ‘discontinued policy fund’ which will earn a minimum of 4% p.a after deducting discontinuation charges. You will have an option to revive the policy within two years from the date of discontinuance of premium. If you do not revive, the policy will be completely withdrawn and the discontinued fund value will be paid on the 1st business day of the 6th policy year.
  • If you discontinue premium payment after five years:
    You can opt for revival within two years or the policy will be converted to paid-up policy. The policy will continue to provide benefits until the date of maturity. Fund value as on the date of maturity will be paid.

Surrender of SBI Life’s Smart Privilege Plan

SBI Life’s smart privilege plan can be surrendered anytime during the policy term. If surrender is requested within lock-in period of five years, the fund value will be transferred to discontinued policy fund after deduction of discontinuation charges applicable. All the other benefits of the policy will cease. However, surrender proceeds or value of the discontinued fund will be paid only on the 1st working day of the 6th policy year. If the surrender is requested after the fifth year, proceeds are paid immediately without any surrender charges applicable.

Loan facility in SBI Life’s Smart Privilege Plan

There is no loan facility available for SBI Life’s Smart Privilege plan.

Exclusions under SBI life’s Smart Privilege Plan

Suicide exclusion: If the life assured, whether sane or insane, commits suicide within a year of purchasing a policy or from the date of revival, then fund value on the date of intimation of such event is payable to the nominee. All the other benefits offered under the policy will cease.

Conclusion

SBI Life’s smart privilege plan is a competent ULIP plan that offers eight diverse funds for investment along with many other flexible and attractive features like switching, premium redirection etc. As the plan is specifically crafted for HNI’s with various fund options, wealth creation can be achieved for such investors depending on their risk appetite and long-term goal in an efficient manner.


FAQs

Loyalty additions are paid from 6th year onwards for only in-force policies till the end of the selected term. Loyalty additions are calculated as a percentage of the average fund value for the year prior to the date of allocation of loyalty addition. Percentage of loyalty addition applicable is as below:

Last day of the policy year Loyalty addition (in %)
6th year 1%
10th year 2.5%
15th year 3.5%
20th year 5%
25th year 6%
30th year 7%

Yes. The policy can be cancelled within the free look period with the reason stated. For SBI life’s smart privilege, 15 days is the free look period for policies that are purchased offline and 30 days for policies purchased through direct marketing.


Premium allocation charges are applicable as a percentage of the premium paid. Here are the details.

Policy year Single premium Limited premium and regular premium
1-5 2% 2.5%
6 onwards Nil