SBI Life - Smart Privilege Plan
A ULIP plan called SBI Life Smart Privilege Plus is intended for people looking to build long-term wealth with growth that is connected to the market. With several premium payment methods, unrestricted fund swaps, and access to a variety of investment funds, the plan provides flexibility. It allows you to achieve both investing freedom and financial stability with extra perks like loyalty additions and life insurance for the duration of the policy.
This plan does not include any policy administration charges, ensuring the investment of a higher amount of money. You also enjoy tax benefits when you invest in this scheme.
What is SBI Life's Smart Privilege Plan?
An individual, unit-linked, non-participating life insurance and savings product is SBI Life-Smart Privilege Plus. It is intended for top achievers seeking both long-term wealth building and insurance protection. With market-linked returns, it provides flexibility in managing your investments as a Unit-Linked Insurance Plan (ULIP).
Eligibility Criteria for SBI Life Smart Privilege Plan
If you are planning on investing in the SBI Life Smart Privilege Plan, there is an eligibility criterion which you must consider.
Parameters | Details |
Entry of Minimum Age | Policies with regular or limited premiums: 8 years; 13 years for a single premium |
Entry of Maximum Age | 55 years |
Age of Maturity | Minimum – 18 years, Maximum – 70 years |
Plan Type | Regular premium, limited premium, and single premium |
Policy Term | Regular premium – 10 years to 30 yearsLimited premium – 10 years to 30 yearsSingle premium – 5 years to 30 years |
Premium Payment Term | Regular premium – Same as policy termLimited premium:Minimum – 5 yearsMaximum – Policy term minus 1 yearSingle premium – One-time payment at theinceptionof the policy. |
Minimum Premium Term (in multiple of Rs.100) | Regular premium/Limited premium payment:Yearly – Rs. 6 lakhsHalf-yearly – Rs. 3 lakhsQuarterly – Rs. 1,50,000Monthly – Rs. 50,000Single premium – Rs. 6 lakhs |
Maximum Premium Amount | No maximumThe Board-approved Underwriting Policy will be followed. |
Premium Payment Frequency | Yearly, half-yearly, quarterly, and monthly |
Basic Sum Insured | Payment terms for regular and limited premiums are seven times the annual premium.1.25 times the single premium |
General Exclusions Under the SBI Life Smart Privilege Policy
If you don't thoroughly review the policy's exclusions, your understanding of it is incomplete. Thus, these are the exclusions of the SBI Life Smart Privilege Plan to provide you with a thorough understanding of the policy and to prevent future issues.
- Anything that doesn't comply with the company's terms and conditions and the policy will be excluded
- The business may take legal action against you if you violate the law in any way with criminal intent
- If the Life Assured dies by suicide within 12 months of the policy's start date or, if applicable, its revival date, the policyholder's beneficiary or nominee will be entitled to the fund value as of the date of death notification. Additionally, any charges—aside from FMC—recovered after the death date will be credited back to the fund value as of the death notification date.
Advantages of SBI Life Smart Privilege Plan
This plan offers several benefits, making it a popular choice for those seeking both protection and savings:
- Combination of Savings and Protection: Provides life insurance coverage alongside investment growth.
- Guaranteed Additions: Enhances policy value with guaranteed additions, acting as an extra source of income.
- Maturity Benefit: On maturity, the policyholder receives the fund value, including bonuses or guaranteed additions.
- Flexible Premium Payment Options: Offers flexibility in choosing how and when to pay premiums.
- Tax Benefits: Eligible for tax deductions under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
The SBI Life Smart Privilege Plan is ideal for individuals looking for long-term financial protection with potential growth through investments.
Documents Required
To open an SBI Life Smart Privilege Plan account, you’ll need to provide the following documents:
Particulars | Documents Required |
Proof of Identity | Aadhar card, PAN card, Driving license, Voter ID, Government ID |
Address Proof | Passport, Electricity bill, Telephone bill, Driver’s license |
How the SBI Life Smart Privilege Plan Works
Here’s how the plan functions in a few simple steps:
- Choose a Policy Term: Select a policy term that aligns with your financial goals.
- Decide the Premium Amount and Term: Choose your preferred premium amount and payment term.
- Select Fund Options: Pick from 11 available fund options.
- Premium Investment: After paying the premium, applicable taxes and allocation charges are deducted, and the remaining amount is invested in the selected fund.
SBI Life Smart Privilege Plan: Fund Options
You can invest in any one or a combination of the funds listed below (in multiples of 1%).
Fund Name | Objective | Assets | Minimum | Maximum | Risk Profile |
Top 300 Fund | Provides long-term capital appreciation by investing in stocks of the top 300 companies based on market capitalization on NSE. | Equity and Equity-related InstrumentsMoney Market Instruments and Cash | 60% 0% | 100% 40% | High |
Balanced Fund | A diversified fund aimed at providing income accumulation through a balance of equities and fixed income securities. | Equity and Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 40% 20% 0% | 60% 60% 40% | Medium |
Bond Fund | Provides a safer, less volatile investment through debt instruments and income accumulation in fixed income securities. | Debt InstrumentsMoney Market Instruments | 60% 0% | 100% 40% | Low to Medium |
Equity Optimizer Fund | Provides equity exposure aiming for higher returns through long-term capital gains. | Equity and Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 60% 0% 0% | 100% 40% 40% | High |
Bond Optimizer Fund | Targets higher returns than a fixed income fund by investing in government securities, corporate bonds, and up to 25% in equity. | Equity & Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 0% 75% 0% | 25% 100% 25% | Low to Medium |
Money Market Fund | Aims to deploy funds in liquid and safe instruments to avoid market risk on a temporary basis. | Debt InstrumentsMoney Market Instruments | Nil 80% | 20% 100% | Low |
Equity Fund | Provides high equity exposure aiming for long-term higher returns. | Equity and Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 80% 0% 0% | 100% 20% 20% | High |
Growth Fund | Provides long-term capital appreciation through equity investments, with a small allocation to debt and money markets for diversification. | Equity & Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 40% 10% 0% | 90% 60% 40% | Medium to High |
Pure Fund | Offers high equity exposure aiming for long-term returns, while avoiding certain sectors like financial institutions, alcohol, gambling, and entertainment. | Equity & Equity-related InstrumentsMoney Market Instruments | 80% 0% | 100% 20% | High |
Midcap Fund | Focuses on high equity exposure targeting long-term returns by investing predominantly in midcap companies. | Equity & Equity-related InstrumentsDebt InstrumentsMoney Market Instruments | 80% 0% 0% | 100% 20% 20% | High |
This table captures all the fund options available under the SBI Life Smart Privilege Plan, detailing each fund's objectives, asset allocation, and risk profile.
Premium Allocation Charges Under SBI Life Smart Privilege Plan
The following are the premium allocation fees for various payment methods:
Payment Method | 1 year to 5 years | From 6th year |
Regular or Limited Premium | 2.50% | NIL |
Single Premium | 2% | 2% |
Sum Assured & Premium - What You Get & What It Costs
Sum Assured
The sum assured provided under this policy is as follows:
- For regular/limited premium policies – 7 x AP
- Single premium policies – 1.25 x SP
Here, AP is Annualized Premium and SP is Single Premium
Premium Range
Plan Type | Premium Frequency | Minimum | Maximum |
Regular/limited premium | Yearly | Rs.6,00,000 | No limit |
Half-yearly | Rs.3,00,000 | ||
Quarterly | Rs.1,50,000 | ||
Monthly | Rs.50,000 | ||
Single Premium |
| Rs.6,00,000 | No limit |
Payment Frequency
- Premium payment can be done on a single, yearly, half-yearly, quarterly and monthly basis.
- For monthly mode of premium payment, 3 months premium must be paid in advance.
Premium Payment Term
- Regular premium policy: same as the term of the policy
- Limited premium policy: Minimum PPT - 5 years; Maximum – policy term (minus) 1 year.
- Single premium policy: single time lump sum payment at time of policy inception.
SBI Life Smart Privilege Plus Plan Policy Details
The following are further details about the SBI Life Smart Privilege Plus Plan:
1. Grace Time
The grace period is the amount of time after the premium due date when the insurance is deemed to be in effect with risk coverage:
- 30 days for quarterly, half-yearly, and annual premium payments
- The frequency of monthly subscription payments is fifteen days.
2. Period of Revival
The policyholder has three full years from the date of the first unpaid premium to renew the insurance if it has been discontinued. Revival is contingent upon underwriting approval and relevant terms & conditions.
3. Free Viewing Time
You can return the policy if you don't agree with any of its terms and conditions:
- 30 days from the date of receipt of the policy document for electronic and distance marketing (online/tele sales) policies
- For policies obtained through any other route, 15 days from the date of receipt of the policy document.
4. Period of Surrender
The plan has a five-year lock-in period starting on the policy's start date.
- Give up during the first five years of the lock-in period: The risk coverage will end. The Fund Value will only be payable on the first working day of the sixth policy year after being moved to a Discontinued Policy Fund.
- Surrender After the Lock-In Period (5 Years): The policy will end, and the Fund Value will be paid out right away.
5. Changing Funds
The Policy Term and the Settlement Period, unlimited free switches and Premium Redirections are permitted.
6. Facility for Loans
A loan facility against the insurance is not provided by the SBI Life-Smart Privilege Plus plan.
Plan Coverage - What the SBI Life Smart Privilege Plan Covers
The SBI Life Smart Privilege Plan provides Life Cover Benefit and Maturity Benefit for policies that are in force.
Life Cover Benefit | Throughout the term of the policy. |
Maturity Benefit | In the event that the life assured survives the policy term up to its maturity, they will be paid the fund value in lump sum. |
Exclusions - What the SBI Life Smart Privilege Plan Doesn’t Cover
- In the event that the life assured policyholder commits suicide in a sane or insane state of mind, in under a year from the policy inception date or the policy revival date, then the fund value on the date of death of the assured policyholder will be paid.
- All benefits payable under the policy will cease.
- Any charges received after the date of life assured’s death will be refunded to the nominee, in addition to the Death Benefit.
Other Key Features – Free Look Period, Surrender Values, Grace Period etc.
Policy Term | Regular/limited premium policies – 10 years to 30 years Single premium policies – 5 years to 30 years |
Switching Option |
|
Premium Re-direction | Policyholders can re-direct their premiums from the first policy year. During the policy term, unlimited premium re-direction permitted free of charge. |
Free Look Period | Free look period of 15 days (if policy received via direct marketing channels) or 30 days (if policy received via distance marketing channels) is provided. In case of cancellation, the original policy document must be returned within the free look period itself. |
Grace Period | For policies with yearly, half-yearly and quarterly premium frequencies, a grace period of 30 days is provided; For policies with monthly premium payment frequency, grace period of 15 days is provided. |
Policy Revival | The policy can be revived within three years from the date the premium was not paid. |
Policy Surrender | Policy can be surrendered at any time during the policy term. Once surrendered, the policy cannot be revived. |
Assignment | Assignment is allowed under the policy as per Section 38 of the Insurance Act, 1938. |
Nomination | Nomination facility is provided under the policy as per Section 39 of the Insurance Act, 1938. |
Tax Benefits – How you can save with the SBI Life Smart Privilege Plan
You are entitled to tax benefits as per the eligible Income Tax laws prevalent in India.
Other Benefits – How you can save with the SBI Life Smart Privilege Plan
- Register online for e-statements – receive e-statements for your insurance policy on your registered email.
- Renewal Payment Options – Make renewal payments easily by setting up standing instructions for the same.
- Premium Calculator – Calculate your policy premiums easily with the help of a premium calculator available on the site.
- Click 2 Call – If you have any queries regarding your policy or wish to enquire about a new policy, you can request a call back.
- Online Policies – Purchase an insurance policy online from the SBI Life website easily.
- Dedicated Customer Care – SBI Life has set up a dedicated customer care department to take care of customer’s queries and complaints.
Riders Under the SBI Life Smart Privilege Plus Plan
To improve the protection coverage, the plan provides one linked rider:
- SBI Life-Linked Accident Benefit Rider (UIN: 111A042V01)
- Upon payment of an additional price, this rider provides two options:
Option A: ADB (Accidental Death Benefit)
Option B: Benefits for Accidental Partial Permanent Disability (APPD).
Why you should buy the Smart Privilege Plan from SBI Life
Started as a joint venture with BNP Paribas in 2001, SBI Life Insurance started operations dealing mainly with bancassurance. As a part of the State Bank Group, SBI Life holds a unique position to leverage its relationship with the banking giant to effectively reach out to over 100 million customers across India.
SBI Life has been the recipient of prestigious awards over the span it its existence for offering quality products under the life insurance segment.
Features of the SBI Life Smart Privilege Plus Plan
The strategy offers flexibility and expansion potential through several important characteristics, including:
- Fund Choice: You can select a strategy based on your risk tolerance by investing in a variety of 12 different fund alternatives
- Flexible Premiums: Provides options for Regular Pay, Limited Pay, or Single Pay, allowing for flexibility in premium payment
- Loyalty Additions: To increase the value of your fund, the plan offers in-force policies. Loyalty Additions beginning at the conclusion of the sixth policy year and continuing at predetermined regular intervals
- Unlimited Switches: Gives you total control over your investing plan by offering unlimited free switches and Premium Re-directions during the Policy Term and Settlement Period.
- No Allocation Charge Advantage: Starting in the sixth policy year, there is no premium allocation charge
- Rider Option: The choice to increase coverage by choosing a rider in exchange for a higher premium.
FAQs on SBI Life - Smart Privilege Plan
- Can I give up my policy with SBI Life Smart Privilege?
The Smart Privilege insurance may be revoked at any point throughout its term, just like other SBI policies. During the first 15 days after the insurance's purchase, during the free-look period, the policy may also be returned.
- Does the SBI Life Smart Privilege Policy have a grace period?
For quarterly, half-yearly, and annual premium frequency payments, there is a 30-day grace period; for monthly payments, there is a 15-day grace period.
- How can I revoke my Smart Privilege of SBI Life?
Within the previously stated 15 or 30 days, depending on the situation, you must submit your request to cancel the insurance through the free look option to the closest SBI Life Office.
- The SBI Life Smart Privilege plan: how is it as an insurance plan?
The purpose of this plan is to provide both insurance and investing benefits. With a variety of investing options, SBI Life Smart Privilege policyholders can tailor their approach and reach their financial objectives.
- What drawbacks does the SBI Smart Privilege plan have?
The SBI Life Smart Privilege Plan has certain drawbacks. Reduced Profits: When compared to pure investment options such as mutual funds, ULIPs usually perform worse. Your returns are reduced by administrative and insurance costs.
- After five years, can I cancel my SBI life insurance policy?
Following three years of premium payments, A will receive Guaranteed Surrender Value. If the surrender occurs after the third policy anniversary but before the sixth policy anniversary, the cash surrender value will be 60% of the premiums paid less the first year premium.
- Is there a reimbursement for SBI Life Insurance?
A refund option is offered if the policyholder is dissatisfied with the terms and conditions of the policy.
- Is a policy loan possible under this SBI Life Smart Privilege policy?
No, this insurance does not offer a policy lending facility.
- Is there any tax advantage?
The Income Tax Act of 1961 provides tax benefits in accordance with current tax legislation. For more information, one can visit the official website or speak with a tax consultant.
- Is SBI Life a smart investment?
Potential advantages of ULIPs like SBI Life Smart Privilege include market-linked returns, tax advantages, and life insurance. But they also carry market risks, and the success of the underlying investment funds determines the rewards.
Karishma VP has over a decade of experience in content writing which includes over five years specializing in personal finance. Her career in BankBazaar has given her the opportunity to write on a wide variety of financial products ranging from credit cards and home loans to insurance policies and government schemes. She believes that an understanding of personal finance is an important step to leading an independent, empowered life. This has led to her being passionate about learning more about the BFSI sector and writing about personal finance as clearly, concisely, and accurately as possible to make it accessible to a larger audience through BankBazaar.
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