SBI Life – Smart Wealth Assure

SBI Life Insurance Company is an alliance formed by State Bank of India and BNP Paribas Cardif. Strong bancassurance and another distribution model along with 23,000 branches across the country to provide service has made it deliver consistent performance. SBI life insurance has a diverse range of insurance as well as investment products to offer for every customer segment.

What is Unit-linked Insurance Plans (ULIPs)?

Unlike pure insurance plans, ULIPs give the investor a dual benefit of protection and wealth creation. A small portion of premium paid goes towards mortality charges for providing life protection. And the rest of the premium amount is invested in investment funds to get market-linked returns. There are various features such as switching, premium redirection and additional riders etc comes with each ULIP that can be utilised by the policyholders. A ULIP product can be participating or non-participating.

SBI Life – Smart Wealth Assure

SBI life’s Smart Wealth Assure is a non-participating unit linked insurance plan. It is a single premium plan wherein investment has to be done only once for which benefits can be enjoyed for the entire policy term.

Features of SBI life’s Smart Wealth Assure

  • Choose an investment fund suitable for your risk-return profile to earn market linked returns
  • One time pay
  • Accidental death benefit as an additional optional rider

Benefits of SBI life’s Smart Wealth Assure

  • Flexibility: There are various flexible options offered under the plan. Depending on your risk appetite, market movements and changing needs, you can switch from bond fund to equity fund or vice versa. Two switches are free of charge in a policy year.
  • Liquidity: Partial withdrawals are allowed from 5th year onwards or after attaining 18 years, whichever is later. Up to 20% of the fund value can be withdrawn to meet any urgent liquidity requirements. There is an option to surrender the policy also in mid-way. However, there are conditions applicable to this.
  • Death benefit: Sum assured or fund value, whichever is higher gets paid to the nominee in the event of policyholder’s demise during the policy period.
  • Maturity benefit: Fund value is paid on maturity at the end of the policy term. You can opt for a settlement option also to get the benefits in periodic instalments.
  • Accidental death benefit: In case death is due to an accident, an additional amount of benefits are paid out if opted for at the time of policy inception.
  • Tax benefits: Tax deduction benefit can be availed under Section 80 C of the Income Tax Act, 1961. Lump sum benefits received are also tax-free under Section 10 (10D) of the Income Tax Act.

Eligibility Criteria for SBI life’s Smart Wealth Assure

Eligibility conditions Minimum Maximum
Entry age 8 years 65 years
Maturity age - 75 years
Policy term 10 years 30 years
Plan type Single premium
Premium range (in multiples of Rs. 100) Rs. 50,000 No limit

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 1.25* single premium 5* single premium
≥ 45 years 1.10 * single premium 3* single premium

For accidental death benefit rider

Eligibility conditions Minimum Maximum
Entry age 18 year 65 years
Maturity age - 75 years
Sum assured range Rs. 25,000 Equal to basic sum assured up to a maximum of Rs. 50 lakhs

Investment fund options in SBI life’s Smart Wealth Assure

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
Bond fund 0% 60%-100% 0%-40% Low-medium

Who should buy SBI Life’s Smart Wealth Assure policy?

Any investor looking for investment options for long-term wealth creation along with meeting life insurance needs can invest in SBI Life’s smart wealth assure policy. As it is a single premium plan, it is suitable for investors having Lumpsum corpus to invest in for long-run.

When should you buy SBI Life’s Smart Wealth Assure policy?

Investment in SBI Life’s Smart Wealth Assure plan can be done anytime once the eligibility criteria’s are met. As the plan offers different investment fund options with a varying combination of debt and equity, SBI Life’s smart wealth assure can be bought both during market downfall and favourable market conditions. You can make a goal based choice while choosing investment funds for investment.

Documents required for buying SBI Life’s Smart Wealth Assure policy

  • Application form
  • Identity proof: Aadhaar card/PAN card/Passport/Voter’s ID card, etc.
  • Address proof: Bank account statement/latest electricity bill
  • Income proof: Employer certificate/IT return a copy
  • Age proof: Birth certificate/School certificate/Passport/Voter’s ID card etc.

Surrender of SBI Life’s Smart Wealth Assure policy

You can surrender the policy anytime during the policy period. However, if you surrender within five years of the lock-in period, your fund value will be transferred to the discontinued policy fund that earns a minimum of 4% p.a. interest rate. Discontinuance charges and fund management charges will be deducted. And the amount will be paid out to you after completion of 5 policy years.

Loan facility on SBI Life’s Smart Wealth Assure policy

There is no loan facility available for this plan.

Exclusions for SBI life’s Smart Wealth Assure

For the base policy, suicide exclusion is applicable. If the life assured commits suicide within one year of policy commencement, the policy will be considered void and all the benefits offered under the plan will cease. Fund value on the date of death intimation will be payable.

Exclusions for Accident benefit rider

Death arising out of or occurring during below events are excluded from the plan.

  • Infection
  • Driving under the influence of alcohol or any intoxicating drugs
  • Self-inflicted injuries/suicide attempts
  • Involvement in unlawful/criminal acts
  • War and civil commotion
  • Aviation
  • Nuclear contamination
  • Hazardous hobbies and sports

Conclusion

SBI Life’s Smart Wealth Assure is a single premium policy wherein you can continue to enjoy the policy benefits throughout the policy term just by making premium payment once. Market-related returns can be enjoyed by investing in two different types of funds based on goal and risk appetite. With many flexible options, the plan is customisable based on need.


FAQs

Here are the major charges applicable for SBI life’s Smart Wealth Assure

  • Premium allocation charges: 3% of single premium
  • Policy administration charges: Rs. 45 monthly for the first five years. The amount will be deducted by cancelling the appropriate amount of fund units
  • Fund management charges: FMC will be deducted as per below rates before calculating the net asset value (NAV)
    Fund Option Fund Management Charges
    Equity fund 1.35% p.a
    Bond fund 1% p.a
    Discontinued policy fund 0.50% p.a
  • Mortality charges: These are age-based charges which will be deducted on the 1st business day of each policy month by cancelling the fund units.
  • Discontinuance charges: These charges are levied from the year of discontinuation of policy.
    Year of discontinuance charges
    1 Lower of 1% of (single premium or fund value) with an upper limit of Rs. 6,000
    2 Lower of 0.5% of (single premium or fund value) with an upper limit of Rs. 5,000
    3 Lower of 0.25% of (single premium or fund value) with an upper limit of Rs. 4,000
    4 Lower of 0.1% of (single premium or fund value) with an upper limit of Rs. 2,000
    5th year onwards Nil
  • Other charges: If switches and partial withdrawals exceed the stipulated numbers, Rs. 100 is charged for each transaction. There are charges for rider also.

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
Bond fund 0% 60%-100% 0%-40% Low-medium

Yes. The policy can be cancelled with the stated reason during the free-look period in case you are not satisfied with the terms and conditions of the policy. Free look period is 15 days for offline policy and 30 days for online policy.


You can surrender the policy anytime during the policy period. However, if you surrender within five years of the lock-in period, your fund value will be transferred to the discontinued policy fund that earns a minimum of 4% p.a. interest rate. Discontinuance charges and FMC will be deducted. And the amount will be paid out to you after completion of 5 policy years.


Partial withdrawal is allowed after attaining 18 years of age or after 5th policy anniversary, whichever is later. Minimum amount to be withdrawn is Rs. 5,000 up to a maximum of 20% of the fund value as on withdrawal request date. However, if the fund value is less than 50% of single premium paid, partial withdrawal is not allowed. Maximum of five policy withdrawals are allowed in a policy term and two withdrawals in a policy year are allowed. If the policy term is more than 15 years, a maximum of 10 partial withdrawals are allowed in the policy term. One partial withdrawal in a policy year is free. If the number exceeds, Rs. 100 per withdrawal is charged.