SBI Life – Smart Wealth Builder Plan

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.

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 10^th year onwards
• For regular and limited pay policies, no policy administration charges for the first five years
• No premium allocation charges from 11^th year onwards
• Seven different investment fund options to maximise your wealth
• Option to increase/decrease the sum assured from 6^th 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 6^th 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 2^nd 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 5^th 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

Premium range depending on the plan type

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

Investment Fund Options in SBI Life – Smart Wealth Builder

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 5^th 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 6^th 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.

FAQ’s