Overview
The Smart Humsafar is an endowment plan where the policyholder can also cover their spouse under the same plan. It offers some interesting benefits to the policyholder which include things like waiver of premium in case of the death of one of the life assured and a payment of the sum assured in such a case. It can provide life insurance cover of amounts as high as Rs. 5 crore and offers both death and maturity benefits. There are also bonuses that can be paid in this policy that include a terminal and a reversionary bonus.
Eligibility Conditions
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Entry age |
Minimum: 18 years Maximum: 46 years |
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Maximum maturity age |
65 years |
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Difference between ages of lives assured |
20 years |
Key Features
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Type |
This is a non-linked participating endowment plan |
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Sum assured |
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Coverage |
Death benefits: The death benefits under this plan are slightly different for each member. There are two options and the benefits paid are the higher of the two.
Maturity benefits: The maturity benefit in this policy is the payment of the basic sum assured along with the vested simple reversionary bonus and terminal bonus. |
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Basis |
Joint |
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Premiums |
The maximum premium that can be paid under this policy will depend on the basic sum assured however, the minimum premiums can be:
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Premium paying term |
This is a regular pay policy so the premium paying term will be the same as the policy term. |
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Premium paying modes |
The premiums can be paid annually, semi-annually, quarterly and monthly. |
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Policy term |
10 years to 30 years |
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Policy validity |
Same as policy term |
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Renewability |
Not applicable |
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Bonuses |
This policy offers a simple reversionary bonus and a terminal bonus. |
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Other features |
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Add-on covers / Riders |
This plan can be coupled with the accidental death benefit rider however, the rider can only be taken when the policy is first taken, it cannot be added on later. |
Benefits/Advantages
- Premiums paid towards this policy and the returns from it are eligible for tax benefits under section 80C and 10(10D) of the IT Act.
- Once the policy has attained a surrender value, policyholders can take a loan of up to 90% of the surrender value of the policy.
- For policies with a sum assured between Rs. 3 lakhs and Rs. 5 lakhs a rebate of Rs. 2 per Rs. 1,000 of sum assured is available.
- For a sum assured of more than Rs. 5 lakhs the rebate on the premium is Rs. 3 for every Rs. 1,000 of the sum assured.
How the Plan Works?
Since this is a joint plan, it can be taken by couple and provides cover for both of them. To understand this plan let us take the example of Ajay, who is married to Parul. He takes this plan and covers his wife too. The amount chosen is Rs. 30 lakhs for a term of 20 years. For this he has to pay an annual premium of Rs. 1,63,944 (basic premium + service tax). The benefits he gets under this plan are:
- At the time of maturity he will get his basic sum assured and the bonuses which could be Rs. 13,14,450 at a rate of return of 4% per annum or Rs. 20,70,000 at a rate of return of 8% per annum (the bonuses are indicative and can change as per company declarations and performance)
- From the 3rd year he will also be eligible to claim surrender values that could range from Rs. 1,42,560 to Rs. 20,59,200 depending on when the policy is surrendered.
- Should he pass away before the policy matures, Parul will get the sum assured and future premiums will be waived off.
- Should Parul also pass away, the beneficiary in that case will get the basic sum assured plus any applicable bonus. The sum assured, in case of option B for second death is selected, will be 105% of all premiums paid including those that were waived off.
Premium Payment
The premium payments remain the same for the duration of the premium paying term and they are paid for the entire duration of the policy. There are four options when it comes to paying the premium and in case the monthly mode is selected, the first three months premiums needs to be paid in advance. The premiums can also be paid either via a credit card or through direct debit from your account. This is the best way for payment of any SBI Life Insurance Policies.
Riders
This plan can be coupled with the Accidental Death Benefit Rider which can enhance the cover of the policy by Rs. 25,000 to Rs. 50 lakhs. This sum assured under this rider will become payable if the death is caused by an accident and is applicable to both the lives assured under the parent plan. The main condition associated with this rider is that the death of the person will be considered to have been a result of the accident if it happens within 120 days of the accident. The premiums for this rider can be paid along with those for the main policy.
