SBI Life – Saral Maha Anand Plan

SBI Life – Saral Maha Anand Plan

SBI life insurance is one of the leading players in an Indian insurance market. It is a joint venture between India’s largest bank, State Bank of India and BNP Paribas Cardif, a global insurance expert. SBI life offers a comprehensive range of insurance as well as savings products for various customer segments. Starting from a pure protection plan to unit-linked insurance products and wealth creation plans, products offered by SBI life insurance Company for individual customer segments are versatile.

What is a unit-linked insurance plan?

As the name suggests unit-linked insurance plans are the hybrid product that provides for risk cover and opportunity to invest in the market. A portion of the premium paid will be invested in funds (a combination of equity and debt) chosen by you depending on your risk profile and long-term goal. As funds are managed by professional experts, there is no hassle of tracking the investment. Basically, ULIP is a long-term investment product with the dual benefit of life cover and wealth creation.

SBI Life’s Saral Maha Anand Plan

Saral Maha Anand is a non-participating unit linked insurance plan that offers both life cover and capital appreciation. Like any other unit-linked insurance plan, Saral Maha Anand also comes with a five year lock-in period before which withdrawal or surrender of policy is not allowed.

Features of SBI Life’s Saral Maha Anand

• No medical examination needed
• Life insurance cover to secure the family’s financial future in the event of an untimely death
• Option to choose SBI’s accidental death benefit rider (at an extra cost of the premium)
• Three investment fund choices. Premium post deduction of premium allocation charges will be invested in the fund option chosen
• No premium allocation charges from 11^th year onwards
• Guaranteed additions of up to 30% of annualised premium on completion of specific duration.

Benefits of SBI Life’s Saral Maha Anand

• Flexibility: Depending on your risk appetite, market situations and changing investment needs, the plan allows you to switch from one fund another among the three fund options available. The plan also gives you the flexibility to reduce the premium from 2^nd year onwards.
• Liquidity: Though it is a long-term plan, Saral Maha Anand offers you liquidity by allowing you to partially withdraw your fund value from 6^th year onwards.
• Simplicity: Hassle-free joining process without any medical examination
• Death benefit: In the event of the death of the policyholder, higher of the following is paid to the nominee
  • Sum assured
  • 105% of the total basic premium paid till date
  • Fund value
• Maturity benefit: If the policyholder survives until the end of the policy term, the fund value is paid as maturity benefit. However, there is a settlement option offered in the plan wherein maturity benefit can be taken in instalments instead of taking it as Lumpsum.
• Additional rider benefit: Accidental death benefit rider can be availed at an extra cost to avail additional sum assured which will be paid out if the policyholder dies in an accident.
• Tax benefit: You can also avail tax benefits under Section 80 C of the Income Tax Act, 1961 for the premiums paid. Also, the maturity benefits are exempted from income tax under Section 10 (10D) of the Income Tax Act.

Who should buy SBI Life’s Saral Maha Anand?

SBI’s Saral Maha Anand is suitable for every type of long-term investor seeking some risk cover as well as capital appreciation by earning some market-driven returns. As there are three different funds to choose from, you can invest according to your risk profile.

Eligibility criteria for SBI Life’s Saral Maha Anand plan

Premium range depending on payment frequency

Sum assured range depending on the age of the policyholder

Please note: Total sum assured for SBI’s Saral Maha Anand, Maha Anand II and Maha Anand is restricted to INR. 7,50,000.

Fund options available in SBI’s Saral Maha Anand for investment

Exclusions in SBI’s Saral Maha Anand Plan

If the life assured commits suicide, within one year of the date of commencement of policy or from the date of revival, the fund value as on the date of intimation of death will be paid out and all the other benefits offered in the policy will cease.

Documents required for buying SBI Life’s Saral Maha Anand Plan

• Proof of identity: PAN card/Passport/Driving license/Voter ID card etc.
• Proof of address: Aadhaar card/ Bank account statement or Utility bills etc
• Age proof: Birth certificate/PAN card/Passport etc.
• Proof of income: IT returns/ salary slip/ employer’s certificate etc

Surrender of SBI life’s Saral Maha Anand plan

You can surrender your policy anytime during the policy term. However, if you surrender within five years of the lock-in period, lock-in condition would get applicable. You fund value after deduction of discontinuation charges if any will be transferred to the ‘discontinued policy fund’ which will earn a minimum 4% p.a. interest rate. And the fund value will be paid out on completion of the 5th policy year. Life cover and rider cover if any in the policy will cease to apply. If you surrender your policy after completion of five years, the fund value will be paid out immediately.

Discontinuance of premium

If you discontinue premium payment, you will have three options :

• Revive the policy within two years of discontinuance by paying all the due premiums
• Completely withdraw from the policy
• Convert the policy into paid-up policy (after paying five years full premium)

There are two scenarios to be taken into consideration while making a choice.

Discontinuance of premium during the first five years of policy

• Fund value on the date will be disinvested and credited to Discontinuance Policy Fund net of charges
• If you do not revive the policy within two years from the date of discontinuance, then discontinuance fund value as on the first business day of 6^th policy year would be paid to you and the policy will get terminated.

Discontinuance if premium after five years of policy

• If you do not revive the policy within two years from the date of discontinuance, then the fund value as on the end of revival period would be paid to you and the policy will get terminated.

Discontinuance charges

These charges are expressed as a percentage of annualised premium or fund value.

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