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  • Term Life

SBI Life - eWealth Insurance

SBI Life has a vast portfolio of insurance products such as saving plans, protection plans, wealth creation with insurance plans, retirement plans, child plans and money back/income plans. In this article, we will focus on SBI Life - eWealth Insurance Plan. This is a Non-Participating Online Unit Linked Insurance Plan which comes with the dual benefit of Life Insurance Cover and Wealth Creation.

SBI Life eWealth Insurance is a Non-Participating Online Unit Linked Insurance Plan which offers the twin benefits of life insurance cover and market-linked returns on your invested money.

Note: All information has been sourced from the official website of SBI Life.

Key Features of SBI - eWealth Insurance Plan

The key features of this plan are:

  • Choice of two plan options - Growth and Balanced.
  • Hassle-free investment management under Automatic Asset Allocation.
  • Market-linked Returns
  • Easy online buying process.
  • Partial withdrawals from 6th policy year.
  • No Premium Allocation Charges.
  • Premiums starting as low as Rs. 10,000/- per annum.
  • The investment funds are automatically rebalanced to counter market fluctuation.

Key Benefits of SBI - eWealth Insurance Plan

The key benefits of this plan are: Maturity Benefit - The maturity benefit under this plan is the fund value which is payable on completion of the policy term.

Death Benefit - In case of death of the policyholder, a higher of (Fund Value or Sum Assured or 105% of total premiums paid till date of intimation of death) is paid to the beneficiary. The Sum Assured will be reduced to the extent of partial withdrawals made in the last 2 years immediately preceding the death of the Life Assured.

Tax Benefit - Premiums paid towards this plan are eligible for deductions as per Section 80C of the Income Tax Act, 1961. The maturity amount is tax free as per Section 10(10D) of the Income Tax Act, 1961.

Eligibility Criteria

The eligibility criteria for this plan are:

EligibilityCriteria
Age at Entry
Min: 18 years
Max: 50 years
Maximum Age at Maturity60 years
Policy Term 10 to 30 years
Sum Assured Multiplier Factor10 or 0.5 x Policy Term (whichever is higher)

Premium Details

The premium details of this plan are:

Premium ModeMinimumMaximum
YearlyRs. 10,000/-No such limit on the
MonthlyRs. 1,000/-Maximum amount.

The Premium Payment Term is same as the policy term.

Additional Policy Details

  • One free partial withdrawal is allowed in a policy year.
  • Maximum of two partial withdrawals are allowed in a policy year.
  • No more than five partial withdrawals are allowed in the entire policy term of 10 years and 10 partial withdrawals are allowed in the entire policy term above 10 years.
  • The minimum partial withdrawal amount is Rs. 5,000. The maximum partial withdrawal amount is 15% of the fund value.

Documents Required

The documents required for this plan are:

  • Application/Proposal form
  • KYC Details - Proof of ID and Address
  • Proof of Age
  • Proof of Income - Bank Account Statement
  • SIP/Auto Debit/SI Mandate Form
  • Medical check-up/report if required

Exclusions under SBI Life - eWealth Insurance Plan

Suicide Exclusion: If the Life Assured - whether sane or insane - commits suicide, within a year from the date of commencement or from the date of revival, then the policy shall become void. The fund value, as on the date of intimation of demise to the company, shall be payable and all benefits under the policy will cease. Any costs recovered subsequent to the date of demise shall be paid back to the nominee with the fund value.

Review of SBI Life - eWealth Insurance Plan

The SBI Life - eWealth Insurance Plan is suitable for any individual who is looking to benefit from the dual advantage of life insurance cover and wealth cover. Another advantage is the AAA feature - the Automatic Asset Allocation feature, which allows you to enhance your investment potential during the different stages of the policy term. For example, investing a considerable portion in equities during the start of the policy followed by increasing investment in debt and less-risky instruments at the end of the policy.

FAQs on SBI Life eWealth Insurance

How do I buy SBI Life eWealth Insurance Plan?

You can buy this product from the official website of SBI Life. On the website, click on the buy now option next to the policy tab. Fill in your online application form, make the online payment and upload the required self-attested KYC documents.

How does this plan work?

The plan works as per the option you have selected while purchasing the policy - Growth or Balanced. The premium is invested through the Automatic Asset Allocation feature. Under this feature, the allocations in equity reduce and in debt/Money Market instruments increase, as the policy term progresses.

What is the difference between the plan options - Growth and Balanced?

Under the growth plan, the debt/money market investments gradually increase and equity investments decrease at the end of the policy. Under the balanced option, the overall exposure in debt/money market investments is higher, offering a balanced approach.

What are the different fund options under this policy?

The different fund options available under this policy are: Equity Fund, Bond Fund and Money Market Fund and Discontinued Policy Fund.

Can I increase or decrease my premiums?

No, you cannot increase or decrease premiums under this plan.