SBI Life Insurance Company, established in the year 2001 is an amalgamation of two globally well-known banking and financial services companies State Bank of India and BNP Paribas Cardif. SBI Life Insurance Company offers a diverse range of customisable insurance and investment products for both individual and group segment. With its wide network, channels, new age products and competitive prices, SBI Life Insurance Company has emerged as one of the best life insurance company in the country.
Unit-linked insurance plans are the hybrid products offered by the life insurance companies that provide the dual benefit of insurance and investment. In ULIP, when you pay a premium, part of it goes towards buying life cover and the remaining part of the premium will be invested in various capital market instruments like equity and debt through fund options available. ULIPs are the long-term investment products that come with a five year lock-in period. ULIP investments help you build a corpus for your long-term goals such as children education, wedding, family vacation and for your retirement life etc.
SBI Life’s Smart Scholar is a non-participating unit linked insurance plan that is specifically crafted for securing your child’s future. This plan helps you gain from the financial market and build a corpus to secure your child’s future dreams. Along with the insurance, financial protection is also provided by securing your child against any uncertainties. SBI Life’s Smart Scholar plan has multiple features to offer in order to get the maximum benefits out of it over the long-term.
|Entry age |
For life assured
|Maturity age |
For life assured
|Policy Term||10 years/15 years/20 years|
|Plan type||Single premium/limited premium|
|Premium payment frequency||Single/Yearly/Half-yearly/Quarterly/Monthly|
|Premium paying term for Limited premium policies|| |
Premium range depending on the plan type and premium payment frequency
|Plan type||Premium paying frequency||Premium range (in multiples of Rs. 100)|
|PPT or Premium Paying Term ≥ 8 years||Half-yearly||Rs. 16,000|
|Yearly||Rs. 50,000||No Limit|
|PPT or Premium Paying Term is 5 to 7 years||Half-yearly||Rs. 25,000|
Sum assured range depending on plan type and age of the policyholder
|Plan type||Age at entry||Sum assured range|
|Limited premium policies||Age < 45 years||Higher of (10 * annualized premium) or (0.50*term* annualized premium)||20 * annualized premium|
|Age < 45 years||Higher of (10 * annualized premium) or (0.50*term* annualized premium)|
|Single premium policies||Age < 45 years||1.25 * single premium||5 * single premium|
|Age < 45 years||1.25 * single premium||1.25 * single premium|
For example, let’s say you are 35-year-old investing in SBI Life’s Smart Scholar plan for your 5-year-old daughter. You are opting for 15 years term with Rs. 50,000 annual premium. You have an option to choose the sum assured multiplier factor from 10 to 20. Let’s, say you choose 20, then your sum assured will be 20*50,000 = Rs. 10, 00,000.
Below are the fund options available for investment
|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|
|Equity optimiser fund||60%-100%||0%-40%||0%-40%||High|
|Growth fund||40%-90%||0%-40%||10%-60%||Medium to high|
|Money Market fund||-||80%-100%||0%-20%||Low|
SBI Life’s smart scholar plan is an ideal option for every individual investor seeking market-linked investment options to secure their child’s future, especially for their educational needs against all the uncertainties. It’s also a great option for parents looking for plans with one-time investment or limited investment period.
SBI life’s Smart Scholar plan can be purchased any time before your child attains 17 years of age. However, starting investment planning for your children as soon as they are born is the wisest thing to do. As SBI Life’s Smart Scholar plan gives returns driven by the market, investing early can help you maximise the return by taking benefit of many market cycles.
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 to this.
You can surrender your policy anytime during the policy term. However, as the plan has five years lock-in period, certain conditions will be applied.
SBI Life’s Smart Scholar plan offers no loan facility
If the life assured commits suicide within the first year of commencement of policy or from the date of policy revival, the policy shall be null and void. Only fund value as on date of death intimation is paid to the beneficiary.
SBI Life’s Smart Scholar plan is a comprehensive investment option available to secure your child’s future against all the uncertainties of life. With various fund option to invest, flexible features and liquidity option, SBI Life’s Smart Scholar is a competent plan available for children’s educational needs.
Premium redirection in SBI Life’s Smart Scholar plan is an option to change the funds for investing your renewal premiums.
Loyalty additions are the free fund units given for all the in-force policies on completion of specific duration as an additional benefit for staying invested for a longer period. Loyalty additions depend on the term of the policy chosen. Loyalty addition is usually a certain percentage of average fund value for a specific duration. In SBI Life’s Smart Scholar plan it is equivalent 1% of average fund value for the last 24 months prior to payment at the end of the specific policy year.
Other SBI Life ULIP Plans