State Bank of India, one of the largest banks in the country has collaborated with
BNP Paribas Assurance to create the joint venture - SBI Life Insurance Company. Among the many insurance products that SBI Life offers, the Smart Swadhan Plus is an attractive plan as it also offers premium refunds, along with maturity sum assured. It is an individual, non-participating, non-linked term assurance plan to secure the family’s financial future, in case of the life insured’s untimely death. This plan not only meets the insurance needs of a policyholder but also comes with the added advantage of providing maturity sum assured and refunds of basic premiums paid, till the policy’s maturity.
Eligibility Criteria for SBI Life Smart Swadhan Plus Plan
To purchase a plan from SBI Life, the prospective policyholder will have to fulfill certain eligibility criteria, put down by the life insurance company. Here are a some of the criteria:
|Minimum age to buy the policy||18 years (age as on last birthday)|
|Maximum age to buy the policy||65 years|
|Maximum age at vesting (maturity)||75 years|
Key Features of the SBI Life Smart Swadhan Plus Plan
The SBI Life Smart Swadhan Plus is a non-participating term assurance that is loaded with attractive features. A few of the key features have been listed as under:
|Type of plan||Non-linked, non-participating, traditional term assurance plan offering guaranteed benefits in terms of protection and premium refund|
|Policy basis||Individual policy|
|Minimum sum assured||Rs 500,000 (in multiples of Rs 1000)|
|Maximum sum assured||No limit|
|Minimum term for policy||10 years|
|Maximum term for policy||30 years|
|Term for Premium Payment||Single pay, 5 years, 10 years, 15 years, or equal to policy term|
|Frequency of premium||Monthly, Quarterly, Half-yearly, Annually; Single|
|Loading frequency of premium||Monthly: 8.90% of annual premium Quarterly: 26.50% of annual premium Semi-annually: 52% of annual premium|
Details of the premium and payment option are mentioned below:
|Policy Term Available||Premium Payment Option|
|10 - 30 years||Single premium|
|10 - 30 years||Regular premium|
|10 - 30 years||LPPT 5|
|15 - 30 years||LPPT 10|
|20 - 30 years||LPPT 15|
*LPPT - Limited Premium Paying Term
|Premium Frequency||Minimum Amount||Maximum Amount|
|Single||Rs 21,000||No limit|
Benefits of SBI Life Smart Swadhan Plus Plan
The Smart Swadhan Plus Plan offered by SBI Life has a number of key advantages, in comparison to similar products, offered by other insurance providers in the market. A few of the competitive benefits of this policy are mentioned as under:
- The policyholder has the flexibility to choose term ranging from 10 to 30 years.
- This insurance plan comes with dual benefits of life cover against any eventuality and guaranteed return of premiums, in case the life insured survives till the policy’s maturity.
- Policyholders choosing higher level of life cover can enjoy discounts on premium rates along with high sum assured rebate.
- For policies in force, the maturity benefit (where the policyholder survives the term), which consists of the basic premiums during the policy’s tenure is paid.
- The policy also has death benefit, wherein the sum assured is paid to the beneficiary in the event of the life insured’s untimely death.
- Premiums paid for this plan are eligible for tax deductions under Section 80C, while tax benefits under Section 10(10D) can be availed on the maturity amount.
How does the SBI Life Smart Swadhan Plus Plan Work?
Mr. Raghav, aged 30 years purchases the SBI Life Smart Swadhan Plus Plan for a sum assured of Rs 5,00,000. He buys the saving policy from sbi life for a tenure of 20 years, by paying the premium during the term. 17 years into the policy, Mr. Raghav suffers a fatal injury at his office’s construction site and passes away a week after the accident. Owing to his untimely death, while the policy was still in force, the organization pays his nominee the entire basic sum assured, along with the maturity benefit and high sum assured rebate.
The life insured can choose the frequency to pay the premiums. They can be paid through a single payment, throughout the term of the policy, or limited period such as 5, 10, and 15 years.
The SBI Life Smart Swadhan Plus plan has no additional rider benefits.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017