SBI Smart Scholar

Age

(Entry)

Minimum: 18 years

Maximum: 57 years

Child: 0 to 17 years

Age (Maturity)

Parent or life assured: 65 years (maximum)

Child: 18 to 25 years

Type

Unit-linked child-cum-life insurance plan

Basis

Limited premium (till policy term)

Policy Term

8 years to 25 years

Premium

The range of premium is listed in the table below:

*no limit for maximum

Premium Frequency

Single/Yearly/Half-yearly/Monthly/Quarterly

Premium Paying Term

Single premium or 5 years to 25 years

Coverage

1. Life Benefit

In the event of the death of the life assured, a lump sum benefit equal to higher of sum assured or 105% of the premiums paid till death. In the event of the death of child, no sum assured is paid. If both the child and the life assured expire during policy term, the policy will be terminated and all due benefits will be paid besides the fund value.

1. Maturity Benefit

Fund value is payable to beneficiary (surviving policyholder or child in the event of the death of the life assured) as a lumpsum or according to the settlement option.

Settlement Options

Periodic instalments of maturity proceeds within five years from the maturity. In the event of the death of child or life assured before the end of the settlement period, fund value is paid as a lumpsum to legal heir of the life assured.

Funds

The various fund options are listed out in the table below:

Switching

Policyholders can switch their investments from the nine available funds. Minimum switch amount is Rs.5,000. Two switches are allowed free of cost in a policy year. Free switches which go unused cannot be carried forward.

Partial Withdrawal

Available from 6th policy year. One partial withdrawal is allowed free of cost in a year. Minimum amount allowed is Rs. 5,000. Partial withdrawal is allowed up to 15% of the fund value.

Premium Redirection

Allowed from second policy year onwards

Freelook period

15 days

Grace period

30 days

Reinstatement

2 years from the date of discontinuance

Surrender

If a policyholder requests for a surrender below 5 years, lock-in is applicable.

If a policyholder requests for a surrender after 5 years, the fund value will be paid immediately.

Tax Benefits

Tax benefits under section 80C and 10D are available. If the premium is above 10% of the sum assured, the tax benefit will be 10% of the sum assured. Policyholders should consult their advisors.

Advantages

1. Accident Benefit

Accident sum assured = base sum assured, subject to a maximum of Rs.50 lakh. Accident sum assured will remain constant during the policy term. Accident benefit is paid only once either in the event of disability or death.

1. Premium waiver benefit

SBI will pay all future premiums at a future date. The child will get the fund value upon maturity. In the event of the death of the child, all benefit will cease.