SBI Life – Smart Wealth Assure

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 5^th 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 Up to 20% of the fund value can be withdrawn to meet any urgent liquidity requirements.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

Premium range depending on payment frequency

Sum assured range depending on the age of the policyholder

For accidental death benefit rider

Investment fund options in SBI life’s Smart Wealth Assure

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.

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