SBI Life - Smart Bachat Plan
SBI Life Smart Bachat is a LPPT (limited premium payment term) Endowment Plan which has been designed to limit requirement of long term premium payment in exchange for life coverage for you and your family.
There are two options included under this plan, which are the Endowment option and Endowment option with in-built Accidental Death and Total Permanent Disability (AD&TPD) Benefit. This plan also offers you the freedom to choose a premium payment term that suits your convenience, along with providing tax benefits on premium paid.
What is the SBI Life Smart Bachat?
Individual, Non-Linked, Participating Life Insurance Savings Product, SBI Life Smart Bachat, offers Limited Premium Payment Term option (LPPT). The plan offers financial support to the family of the insured in times of emergencies by eliminating the long-term premium payment system, thereby reducing the burden of financial load.
Features of SBI Life Smart Bachat
The following are the key features of SBI Life Smart Bachat plan:
- Free look period: The policyholder can cancel the policy if the policyholder does not want to continue the plan policy terms from 12 to 25 years.
- Policy loan: Policyholder can also avail themselves of loan against SBI Life Smart Bachat policy which would be 90% of the surrender value.
- Grace period: The plan also provides a grace period of 30 days for policy terms from 12 to 25 years and 15 days for policy terms from 12 to 25 years from the policy terms from 12 to 25 years, if the policyholder has missed the policy premium paying due date.
- Surrender value: The SBI Life Smart Bachat policy enables policyholder to surrender the policy after paying two full year’s premium and you will receive the surrender value.
- Revival: The policy ensures revival of lapsed policy within two years from the first unpaid premium date.
- Financial protection: Two different plan options are available under this policy which are endowment option and endowment option with in-built AD and TPD benefits that provide financial protection to the policyholders and their family members.
- Multiple renewal option for policy: The plan offers multiple policy renewal options along with multiple payment methods as per the convenience of the policyholder.
- Flexibility: Depending on the financial goals and premium payment terms (PPT) of 6,7,10 and 15 years, policyholders are offered the flexibility to choose the policy terms from 12 to 25 years as per their convenience.
- In-built Premium Waiver Benefit: In case of total and permanent disability due to an accident, the policy offers in-built premium waiver option to the insured.
- Life coverage: The policy offers life coverage throughout the tenure of the policy that is end of the premium paying term.
- Benefits of tax exemption: As per the Income Tax Act 1961, policyholders can avail tax benefits according to the prevailing tax laws.
Who is Eligible for the SBI Life Smart Bachat Plan?
The following are the eligibility criteria laid down for the SBI Life Smart Bachat Plan.
Plan Type | Individual |
Minimum age at entry | Option A – 8 years; Option B – 18 years |
Maximum age at entry | 55 years |
Minimum age at maturity | 65 years |
Maximum age at maturity | 65 years |
Minimum Basic Sum Assured | Rs.1 lakh |
Maximum Basic Sum Assured | No limit |
Premium Paying Term in years | 6, 7, 10, and 15 |
Policy Term in years for the corresponding Premium Paying Term | 12 – 25, 12 – 25, 15 – 25, and 20 - 25 |
Premium Payment Frequency | Yearly, Half-yearly, Quarterly, and Monthly |
Premium Frequency Amount |
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Premium Paying Amount (Minimum) |
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Premium Paying Amount (Maximum) | Subject to Board approved underwriting policy, the maximum premium paying amount depends on the Sum assured |
What Plan Options are Available under the SBI Life Smart Bachat Plan?
The following are the plan options available under the SBI Life Smart Bachat plan:
- Option A: Endowment Option
o A simple reversionary bonus along with a terminal bonus will be provided the insured on maturity of the plan.
o The insured will receive the reversionary bonus throughout the policy tenure.
- Option B: Endowment option with in-built AD and TPD benefit
o The plan will offer benefit of AD and TPD in lump sum along with the benefit available under option A.
o Till surrender, death, or maturity, the base policy will remain active, and the future premium would be waived off.
What Documents Are Required for the SBI Life Smart Bachat Plan?
The following are the required documents to apply for SBI Life Smart Bachat plan:
- Identity proof (any one of the following documents):
o PAN card
o Passport
o Voter ID card
- Proof of residential address (any one of the following documents):
o Passport
o Driving License
o Voter ID card
Plan Coverage - What Does the SBI Life Smart Bachat Plan Cover?
The SBI Life Smart Bachat Plan provides a number of benefits such as the Maturity Benefit and Death Benefit (applicable for both plan options) and the Accidental Death & Total Permanent Disability (AD&TPD;) Benefit that is applicable for only option B under the plan.
Maturity Benefit | In case the assured policyholder survives until the end of the policy term, they will be paid the Vested Simple Reversionary Bonuses + Basic Sum Assured + Terminal Bonus, if any. (in case it is a paid up policy, the policyholder will get the Paid Up Sum Assured instead of the Basic Sum Assured) |
Death Benefit | In case the life assured policyholder passes away during the policy term, their beneficiary will get the higher of A or B. A: Sum Assured on death + Vested Simple Reversionary Bonuses + Terminal Bonus (if any). Here Sum Assured on death will be either 10x of Annualized Premium or higher of Basic Sum Assured. B: 105% of total premiums paid until death. |
AD & TPD Benefit |
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Exclusions - What Doesn’t the SBI Life Smart Bachat Plan Cover?
Suicide Exclusion
- In case the life assured policyholder commits suicide, regardless of being in a sane or insane state of mind, within one year from the date policy commencement or a policy revival/reinstatement date, then no death benefit will be paid by the insurer.
- The nominee named in the policy will receive an amount equal to 80% of all premiums paid till death if the suicide has taken place within a year from the date of commencement of risk coverage.
- In case of suicide within a year from policy revival/reinstatement date, 80% of premium paid until death or surrender value of the policy (whichever is greater) will be payable.
- After benefits are paid, the policy will be terminated.
AD & TPD Benefit Exclusions
In case death or disability has taken place due to any of the following causes:
- Caused due to any infection, except an infection caused by a accidently sustained visible external wound.
- Death or disability caused due to influence or consumption of drugs, intoxicants, except those which have been prescribed by a medical professional.
- Any self-inflicted injury, including those sustained during an attempt to suicide.
- Death or disability caused due to participation in criminal/unlawful acts.
- Death or disability caused due to war, civil commotion, invasion, hostilities, rebellion, etc.
- Death or disability caused due to exposure to nuclear contamination – radioactive, explosive or hazardous nuclear fuel materials, or accident arising from the same.
- If death or disability has occurred due to the life assured participating in any air-borne activity which does not include being a passenger on a commercial licensed aircraft.
- If the life assured partakes in hazardous sports or activities which are not covered under the terms of the policy.
Other Key Features of the SBI Life Smart Bachat Plan
The following are some of the other key features:
Rebates | Rebates will be provided as discounts on basic premium for high sum assured. |
Assignment | Nomination facility is allowed under the policy as per Section 39 of the Insurance Act, 1938. |
Nomination | Policyholder is permitted to assign the policy to a party by filing a written notice regarding the same to the insurer as per Section 38 of the Insurance Act, 1938. |
Tax Benefits – How You Can Save with the SBI Life Smart Bachat Plan?
Policyholders will be entitled to applicable tax benefits which are prevalent under the Income Tax laws in India.
Other Benefits - How You Can Save with the SBI Life Smart Bachat Plan?
Online Registration for e-statements | To receive e-statements on your registered email for your policy schedule, you can simply register online via the SBI Life website. |
Set Standing Payment Instructions | You can also set standing instructions for making timely renewal payments on your SBI Life policy via their website. |
Multiple Policy Renewal Payment Options | Make policy premium payments conveniently as SBI Life provides multiple channels for premium payments. Choose the method of payment as per your convenience. |
Click 2 Call | SBI Life also offers a convenient ‘request a callback’ facility called Click 2 Call which allows customers to get in touch with a customer service person. For resolution of queries. This is available on the company’s website itself. |
Online Policy Purchase | You can even purchase your SBI Life policy from the SBI Life website. |
Premium Calculator | Calculate how much the policy is going to cost you with the help of the handy Premium Calculator available on the site. |
Proposal Tracker | Track your insurance policy proposal easily online. |
Claims Corner | Find out all about the claim settlement process by heading over to the Claims Corner that has been set up to provide all claim related information. |
SMS Based Services | Customers can get various information such as the fund value, fund switch transaction details, policy status, renewal details, policy dispatch details, update their email ID or PAN number by simply sending an SMS. |
Order A Form Online | You can even have a policy form delivered to your doorstep by ordering the same from the insurer’s website. |
Dedicated Customer Care | SBI Life has set up a dedicated customer care department to take care of customer’s queries and complaints. |
Why Should You Buy the Smart Bachat Plan from SBI Life?
Established as a joint venture with BNP Paribas in 2001, SBI Life Insurance commenced operations dealing mostly in bancassurance related products. Over time, the insurer entered the life and health insurance segment is now among the leading players in the segment. Being a part of the State Bank Group, SBI Life uses its association to reach out to more than 100 million customers to offer them unique insurance solutions.
FAQs on SBI Life - Smart Bachat Plan
- Is there a rider option available under the SBI Life Smart Bachat Plan?
No, there is no additional rider option available under SBI Life Smart Bachat plan.
- Is revival period available under SBI Life Smart Bachat?
Yes, a two-year revival period is available under SBI Life Smart Bachat. This enables policyholders to revive their lapsed policy within two years from the first unpaid premium date.
- Does SBI Life Smart Bachat offer loan facility?
Yes, after acquired surrender value, the SBI Life Smart Bachat policy is eligible for providing the loan facility up to 90% of the surrender value.
- Is there any premium waiver option under the plan?
Yes, in case total and permanent disability due to major accident premium waiver option is offered by SBI Life Smart Bachat.
- What options of premium payment terms are available under the plan?
The SBI Life Smart Bachat plan offers multiple premium payment terms such as 6, 7, 10, and 15 years.
- Can I pay my premiums for the SBI Life Smart Bachat plan on a monthly basis?
Yes, you can pay premium for the SBI Life Smart Bachat plan on a monthly basis apart from other premium paying terms, such as quarterly, half-yearly, or yearly.
- Is there any staff discount under the plan?
Yes, there is a discount of 6.00% offered to the policyholder who are staff members of the State Bank of India.
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