SBI Life - Smart Power Insurance

SBI Life Insurance Company Limited is a joint venture between State Bank of India and BNP Paribas Cardif S.A, where SBI holds 70.1% of the total capital, BNP Paribas owns 26%, MacRitchie Investments and Value Line private limited hold 1.95% each. SBI Life Insurance Company Limited is one of the most prominent life insurance companies in India. Since its inception, the company is focused on emerging as the leading insurance provider with an extensive range of insurance products at competing prices, ensuring operating efficiency and highest customer satisfaction.

The company offers a wide range of individual plans such as protection plans, child plans, savings plans, and retirement plans. The company also provides corporate group solutions, group micro insurance plans, and group loan protection plans. Moreover, SBI Life Insurance has multiple life insurance products that can be purchased from the company website in a hassle-free manner which involves minimum paperwork. The company also offers an extensive range of services through its official website including the facility to track your policy, premium payment, the revival of a lapsed policy, generation of online premium receipts and other SMS based services.

SBI Life Insurance helps people to understand that life is not only about living in the present, but also about planning for the financially secure future. SBI Life – Smart Power Insurance is an ideal option for those who are looking for securing the future of their family. It is a non-participating, ULIP (Unit-linked Insurance Product) which acts as an insurance cum investment plan, making it an ideal solution for people. One can customise the plan based on the current needs and future expectations. The plan offers adequate cover at affordable prices. The policy comes with two variables, offering two different fund options to help policyholders to choose the best investment solution to meet their financial needs.

The SBI Smart Power insurance policy provides a life cover to individuals and also doubles up as an investment plan. The policy offers the following benefits to policyholders, irrespective of the policy option chosen by him/her. Life cover benefit: In the event of the demise of the life insured within the policy term, the nominee will receive the life cover benefit. The benefit amount is equivalent to the sum assured or the fund value, whichever is higher at the time of demise. However, a minimum of 105% of the total premium amount is paid to the nominee.

Maturity benefit: A maturity benefit is given to the life insured on survival till the end of the term. The maturity amount which is the fund value, is paid to the policyholder as a lump sum. A policyholder has an option to receive the maturity benefit in instalments, where the amount is paid for five years after maturity. He/she can choose to receive yearly, half-yearly, quarterly or monthly payment, based on requirements.

Accelerated Total and Permanent Disability benefit: In case of permanent disability of a policyholder due to accident or illness, the company will pay the life cover benefit to the policyholder or the nominee. Once this benefit is paid, the policy shall come to an end. Income tax benefits: The premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The death benefit received by the nominee is tax free. The maturity benefits are also tax free under Section 10(10D) of the same act. SBI Life Smart Power Insurance plan gives two unique features to the policyholders to enhance the policy.

• The increasing sum assured: Unlike the level cover option where the sum assured remains the same throughout the term of the policy, the increasing sum option, if opted for, increases the initial sum assured by 10% after every five years starting from the 6th year. It is important to note that mortality charges also increase with the increase in sum assured.

• Trigger fund option: Trigger fund option is given to customers along with regular investment fund option. Under this option, 80% of the premium amount will be invested in equity fund and remaining in bond fund. On every 15% rise or fall in net asset value of the equity fund, the portfolio will be rebalanced in 80:20 ratio. Thus, this trigger point will redistribute the surplus or shortage of the funds. This way, in case NAV rises by 15%, there will be a profit booking from equity funds, and when the NAV falls by 15%, the system will automatically sell the bond units to maintain the ratio.

SBI Life – Smart Power Insurance Plan at a glance:

• Icici Prudential Signature | Icici Prudential Life Time Classic | Max Life Fast Track Super Plan

Customers need to submit a duly-filled policy application form along with the below mentioned self-attested KYC documents.

Age proof: Any one of these can be submitted as a valid age proof – Passport, PAN card, Driving license, School/college certificate, Birth Certificate.

Identity proof: Aadhaar card, PAN card, driving license, or voter ID can be submitted as an identity proof.

Address proof: Aadhaar card, Utility bill, or bank account statement can be submitted as a proof of address.

SBI Life – Smart Power Insurance plan is a non-participating, unit-linked insurance policy (ULIP) which provides both insurance and investment benefits to policyholders. With greater flexibility in terms of withdrawals, reasonable premiums and protection option, Smart Power Insurance policy becomes an excellent option for those who want to secure their future by investing money and get a life cover.

Smart Power Insurance plan comes with a minimum lock-in period of five years. Hence, policyholders cannot withdraw funds before completion of five years. The sum assured is the multiple of the annual premium policyholders chooses to pay. The maximum sum assured is Rs. 1 crore. The policy offers a unique feature of increasing sum assured according to which the sum assured will be increased by 10% after every five years from the 6th year of the policy term. Premiums paid by policyholders get invested into equity and debt funds as per the fund option chosen by policyholders. The plan offers another distinct option to the policyholders which is called ”Trigger Fund”. This option will automatically rebalance the allocation of equity and debt after every 15% up and down of the investor’s portfolio. The insurer calls it “Buy low and sell high” strategy.

On maturity, policyholders will get the fund value, or in case of death of the policyholder, the nominee will receive the fund value, or the sum assured, whichever is higher. Maturity and death benefits are provided only if the policy is in force. Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act, 1961.

One has an option to customise the plan based on their present needs and future expectations. The SBI Life – Smart Power Insurance Plan offers adequate cover with investment option at affordable prices. The policy offers two plan options, offering two different fund options to invest money and help one to find the best solution to meet their financial goals.