SBI Life Smart Wealth Builder Plan

SBI Life Insurance Company is a leading public sector insurer in India. With domestic value and global expertise from State Bank of India and BNP Paribas Cardif, SBI life insurance is emerging as one of the best customer-centric insurance providers in the country. The company has been awarded consistently for its contribution to the Indian insurance sector. SBI life insurance offers many types of insurance and investment product to suit diverse customer needs. There are also many products designed specifically for wealth creation.

What are Unit Linked Insurance Plans?

ULIPs are a popular investment product offered by insurance companies. With the dual benefit of investment and insurance, ULIP offers the customer freedom to explore capital market along with having a protection cover. Part of the premium paid is invested in market instruments in various combination to maximise wealth. Risk cover is also provided during the policy term to secure the family’s financial needs.

SBI Life Smart Wealth Builder Plan

SBI life’s smart wealth builder is a non-participating unit linked insurance plan. This plan gives seven fund option to invest in according to your investment needs and risk profile. There is a five year lock-in period to the policy within which withdrawal and survival benefits are not given. This product helps you attain both investment and insurance needs.

Features of SBI Life Smart Wealth Builder Plan

  • Term-based guaranteed additions which can go up to a maximum of 125% of one annual regular premium. Guaranteed addition starts from 10th year onwards
  • For regular and limited pay policies, no policy administration charges for the first five years
  • No premium allocation charges from 11th year onwards
  • Seven different investment fund options to maximise your wealth
  • Option to increase/decrease the sum assured from 6th year onwards

Benefits of SBI Life Smart Wealth Builder Plan

  • Flexibility : Smart wealth builder offers many flexible options.
    • It allows you to change the sum assured multiplier factor on each policy anniversary from 6th year onwards depending on your new requirements. Three times you are allowed to change in the policy term.
    • The plan also offers you the flexibility to switch between seven fund options available according to market situations and your changing needs.
    • From 2nd year onwards, the policy offers you a facility of premium redirection for free.
  • Liquidity : You can make a partial withdrawal from your policy fund on attaining 18 years or on completing 5th policy year, whichever is later. You are allowed to make a maximum of five partial withdrawals in the policy term.
  • Transparency : The plan comes with a transparent charge structure.
  • Death benefit: In the event of death, higher of the below is payable to the nominee :
    • Sum assured
    • Fund value
    • 105% of total premium paid till the date of death intimation
  • Maturity benefit : In case the policyholder survives the policy term, the fund value will be payable on the date of maturity. The benefit can also be received in periodic instalments through ‘settlement option’.
  • Tax benefits : Premium paid towards Smart wealth builder plan is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. And the benefits received are tax-free under Section 10 (10D) of the IT Act.

Eligibility Criteria for SBI Life Smart Wealth Builder Plan

Eligibility conditions Minimum Maximum
Entry age 7 years 60 years for regular and limited pay plans
65 years for the single premium plan
Maturity age - 70 years
Policy Term
Single premium
Limited premium
Regular premium

5 years
10 years
10 years

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

One-time payment at the time of purchasing the policy
5 years – 10 years
Same as the policy term
Premium payment frequency Single or yearly

Premium range depending on the plan type

Plan type Premium range (in Rs.)
Minimum Maximum
Single premium 65,000 3,00,000
Limited premium 40,000
Regular premium 30,000

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

Age Sum assured range (in Rs.)
Single premium Limited premium Regular premium
Minimum Maximum Minimum Maximum Minimum Maximum
< 45 years 1.25* SP 3* SP (10*AP) or (0.50 * term*AP), whichever is higher 15*AP (10*AP) or (0.50 * term*AP), whichever is higher 20 * AP
≥ 45 years 1.1 * SP 1.25*SP (7* AP) or (0.25 * term*AP), whoever is higher 15*AP (7* AP) or (0.25 * term*AP), whoever is higher 20 * AP

Please note : ‘AP’ is annualized premium and ‘SP’ is single premium

Investment Fund Options in SBI Life – Smart Wealth Builder

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% 0%-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

Who should buy SBI Life’s Smart Wealth Builder plan?

Investors looking for investments that can offer financial securities to the family during eventualities along with greater opportunities to maximise their savings can consider SBI life’s Smart Wealth Builder plan. As the plan offers a diverse range of fund options to invest in, this tax-efficient plan is suitable for investors looking for diversification of the portfolio.

When should you buy SBI Life’s Smart Wealth Builder plan?

Investment into SBI life’s smart wealth builder plan can be made any time after meeting the eligibility criteria. As it is a ULIP product, many fund options are available for investment. Fund choice can be made based on goals and market condition. Staying invested for long can maximize your market-linked returns.

Documents required for buying SBI Life’s Smart Wealth Builder plan

  • Age proof: PAN card/Passport/Birth certificate/ driving license etc.
  • Identity proof: PAN card/ Aadhaar card/ Passport / Voter’s ID card / driving license etc.
  • Address proof: Electricity bill/ bank account statement etc.
  • Income proof: IT return/ employer certificate

Discontinuance of premium in SBI Life’s Smart Wealth Builder plan

There are two scenarios in this case

  1. If you discontinue the policy within the lock-in period of five years
    1. Your fund value will be transferred to ‘discontinued policy fund’ (after deduction of charges if any) which basically keeps your money in government securities and money market instruments.
    2. You can revive your policy within two years of discontinuation. If not, on completion of the 5th policy year, the fund value will be paid out along with termination of the policy.
  2. If you discontinue the policy after five years
    1. Your policy will remain in force during the revival period of 2 years
    2. If the policy is not revived within this period, the policy will be terminated and fund value will be paid out
    3. You can also opt for converting the policy as ‘paid-up policy’ with a lower sum assured value.

Surrender of SBI Life’s Smart Wealth Builder plan

The plan can be surrendered anytime during the policy term. However, if you surrender within the lock-in period of first five years of the policy, fund value as on date will be transferred to ‘discontinued policy fund’ after deducting discontinuance charges and the policy benefits will cease. Surrender benefits will be paid only on the first business day of the 6th policy year. If you surrender the policy after five years, surrender value or the fund value as on date will be paid immediately.

Loan facility in SBI Life’s Smart Wealth Builder plan

There is no loan facility for this plan.

Exclusions in SBI Life’s Smart Wealth Builder plan

If the life assured commits suicide within a year from date of commencement of policy or from date of policy revival, the policy shall be void. Fund value as on date of death intimation will be paid to nominee/beneficiary.

Conclusion

SBI Life’s Smart Wealth Builder plan is a long-term investment cum insurance product that offers transparency, flexibility and goal-based investing opportunity to meet your long-term financial goals. Triple benefit of protection, investment and tax efficiency of the product makes it a one-stop solution for long-term investors.


FAQs

Here are the charges apply depending on the plan type

Policy year Regular premium Limited premium Single premium
5 year 8 year 10 year
1 9% 9% 9% 9% 3%
2 6.5% 6.5% 6.5% 6.5% NA
3 6.5% 6.5% 6.5% 6.5%
4 6% 6% 6% 6%
5 6% 6% 6% 6%
6 3.5% NA 3.5% 3.5%
7 3.5% 3.5% 3.5%
8 3% 3% 3%
9 3% NA 3%
10 3% 3%
11 onwards 0% NA

The NAV or net asset value in SBI Life’s Smart Wealth Builder ULIP plan is a total value of its holdings after deducting all the expenses. Here is how NAV is computed in SBI life’s smart wealth builder plan.

NAV = (market value of investments held by particular fund + value of current assets – the value of current liabilities, if any)/ number of units in the fund on the valuation date


Free look period in SBI Life’s Smart Wealth Builder plan is an initial time given to the policy purchaser to review the policy terms and conditions and then decide whether to keep the policy or not. After purchasing the policy, if you are not satisfied with the policy conditions you can cancel without any charges within the free look period given. However, it’s important to state the reason for cancellation. Free look period for SBI life’s smart wealth builder plan lasts for 15 days (policies purchased through channels other than distance marketing) and 30 days for policies bought through distance marketing channels.