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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.

Key features of Smart Power Insurance Plan

  • The policy offers two distinct options to policyholders - The level cover option where the sum assured remains the same throughout the policy tenure, and the increasing cover option, where the sum assured is increased by 10% after every five years from the 6th policy year.
  • Customers are given two different fund options to choose from – the trigger fund which provides policyholders with the benefit of buying low and selling high, and the smart fund option which provides the facility to choose from seven distinct funds.
  • Policyholders have an option to switch between funds twice in a year for free.
  • Partial withdrawals are allowed, which gives policyholders liquidity when they need funds.
  • The policy offers flexible premium payment modes, i.e. yearly, half-yearly, quarterly and monthly.

Benefits of SBI Life - Smart Power Insurance Plan

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.

Eligibility Criteria

ParameterEligibility criteria
Minimum age at entry18 years
Maximum age at entry45 years
Maximum age at maturity65 years
Plan options to choose from
Based on the sum assured:
1. Level cover option – Under this option, the sum assured does not change over the policy term.
2. Increasing cover option – Under this option, the sum assured increases by 10% annually from the 6th policy year and every 5 years thereafter. The increase in sum assured continues for five years.
Based on funds:
1. Trigger fund option
2. Smart fund option

Policy details SBI Life - Smart Power Insurance Plan

SBI Life – Smart Power Insurance Plan at a glance:

Particulars

Minimum

Maximum

Entry age

18 years

45 years

Sum assured

Higher of 10 times annualised premium or 0.5 times annualised premium multiplied by the policy term

20 times annualised premium (Cannot exceed Rs. 1 crore)

Plan type

Regular

Maturity age

65 years

Policy term

10,15 to 30 years

Premium frequency

Yearly, half-yearly, quarterly, monthly

Premium paying term

Same as the policy term

Premium range

Premium frequency

Minimum

Maximum

Yearly

Rs. 15,000

No limit

Half-yearly

Rs. 9500

Quarterly

Rs. 5500

Monthly

Rs. 2000

Sum assured and premium details - Smart Power Insurance Plan

Sum assured is the benefit which is guaranteed at the start of the term. This is the amount which the insurance company pays to the nominee if the policyholder dies during the policy term. This is the basic life cover amount the policyholder is entitled to receive at the end of the policy term. The sum assured depends on the premium amount chosen by policyholder, which is mentioned in the table below:

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Minimum sum assured
Higher of,

- 10 x annualised premium
- 0.5 x annualised premium x policy term
Maximum sum assured20 x annualised premium

Following are the premium details of Smart Power Insurance Plan

ParticularsMinimumMinimum
Policy term10 years30 years
Premium payment termSame as the policy termSame as the policy term
Premium payment frequencyMonthly, quarterly, half-yearly, yearlyMonthly, quarterly, half-yearly, yearly
Single premium amountNo single premium No single premium
Monthly premium amountRs. 2,000No limit
Quarterly premium amountRs. 5,500No limit
Half-yearly premium amountRs. 9,500No limit
Yearly premium amountRs. 15,000No limit

Other key features of SBI Life - Smart Power Insurance Plan

Grace period: If the policyholder fails to pay the premium on or before the due date, a grace period of 15 days (for monthly premium payment mode) is given to make the premium payment. 30 days of grace period is given to policyholders in case the premium payment mode is other than monthly basis. During the grace period, the policy remains in force, and the policyholders or nominees are eligible to receive all the benefits as specified in the policy document.

Free-look period: SBI Life offers a free look period of 15 days to the customers in case they are not satisfied with the features and policy terms. Customers have an option to cancel the Smart Power Insurance Plan within this free-look period by providing a notice to the company with a valid reason for policy cancellation. The company may deduct stamp duty and other applicable charges from the refundable amount. The free look period of 30 days is given to those who purchased the policy via distance marketing channels.

Policy revival: If policyholders fail to make premium payment during the grace period, the policy will lapse. However, it is possible to revive a lapsed policy within two years from the date of first unpaid premium. The revival is subject to the board’s approval and the underwriting policy of the company. Upon approval, the policy will be restored with effect from the policy revival date. Fund options: There are seven fund options available under this plan:

Fund nameRisk profile
Equity FundHigh
Top 300 FundHigh
Equity Optimiser FundHigh
Growth FundMedium-High
Balanced FundMedium
Bond FundLow – Medium
Money Market FundLow

Partial withdrawals: Policyholders can make partial withdrawals from the 6th policy year. Policyholders are allowed up to two free withdrawals per year. The number of partial withdrawals allowed in a year is limited to 4. Switching: Policyholders have an option to switch between funds. Two free switches are allowed in a policy year, switching charges of Rs. 100 levied on extra switches.

Premium redirection: Policyholders can redirect premiums from second policy year onwards, among the seven fund options available under Smart Funds Option. The minimum switch amount is set to Rs. 2000

Settlement option: Policy settlement option is available at maturity, and it provides policyholders with the flexibility to receive maturity benefits on monthly, quarterly, half-yearly and yearly instalments with a maximum period of 5 years from the date of maturity.

Portfolio transfer option: Policyholders have an option to change the fund option – Trigger Fund or Smart Funds option, at any policy anniversary date. This can be done by providing a written intimation to the company, at least 2 months prior to the policy anniversary. This facility can be utilised twice during the entire policy term. No charges are levied on such transfer.

Nomination: Nomination under SBI Life – Smart Power Insurance policy is allowed as per Section 38 of the Insurance Act, 1938.

Assignment: Assignment of SBI Life – Smart Power Insurance policy is allowed under Section 39 of the Insurance Act, 1938. Policy surrender: Policyholders can surrender the plan at any time during the policy term. Once surrendered, there will be no option to restore the policy.

If surrendered during the first five years of policy: As per the lock-in condition, the fund value will be shifted to the "Discontinued Policy Fund". The policyholder will earn a minimum of 4% interest rate per annum on this value. The policyholder needs to pay the fund management fees, and the fund value will be payable after the 5th policy year.

If surrender is requested after completion of 5th year: The fund value will be paid immediately to the policyholder.

Documents Required

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.

Exclusions of SBI Life - Smart Power Insurance Plan

There are certain exclusions under SBI Life – Smart Power Insurance plan, which are as mentioned below:

Suicide: The policy becomes void in case the policyholder commits suicide within 12 months from purchasing or revival of the plan. The company will pay the nominee the fund value as on the date of intimation of death to the company. The policy will come to an end once the amount is paid.

Accelerated Permanent Disability benefit: No benefit will be paid to the policyholder or the nominee if the disability occurs due to any of the reasons stated below:

  • Disability caused due to any self-inflicted injury. Disability due to suicide attempt is excluded.
  • Any disability as an effect of drugs or intoxication.
  • Disability caused due to war, civil hostility, rebellion, etc.
  • Disability due to nuclear contamination.
  • Disability caused due to participation in any criminal activity.
  • Pre-existing ailments
  • Disability occurred due to HIV/AIDS
  • Members of armed forces who face injuries and disabilities on the battlefield, or while in the line of duty.

Review of SBI Life - Smart Power Insurance Plan

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.

FAQs on SBI LIfe Smart Power Insurance

Who can buy this plan?

Any Indian national from the age of 18 to 45 years can buy SBI Life – Smart Power Insurance Plan. It is an insurance cum investment product, suitable for those who wish to have a life cover and provide financial protection to their family in the long run.

Is it possible to withdraw fund before completion of five years without discontinuing the policy?

Policyholders are not allowed to withdraw funds from the policy before completion of five years. Partial withdrawals can be made only from the 6th policy year.

Can I take a loan against SBI Life – Smart Power Insurance plan?

The loan option is not available under the SBI Life – Smart Power Insurance Plan.

How can I cancel the Smart Power Insurance Plan?

If you are not satisfied with policy terms and features, you have an option to cancel your SBI Life – Smart Power Plan within 15 days from the policy issue date. This period is called the free-look period, which is extended to 30 days in case the policy is purchased through distance marketing channels.

Does the plan offer any optional riders?

SBI Life – Super Power Plan does not offer any riders.

How can I claim my Smart Power Insurance plan?

Follow the steps listed below for easy claim processing:

  • Inform the company about the claim via email, online, or visit the nearest branch office of SBI Life.
  • Submit the required documents.
  • On receipt of documents, the company shall start the verification process to ascertain if the claim made is valid or not.
  • On successful verification, the company will release the claim amount within a stipulated time.

What are the charges for using the partial fund withdrawal facility?

Two free partial withdrawals are allowed during a policy year. Rs. 100 is levied for each withdrawal over free withdrawals permitted.

What are fund options available under Smart Power Insurance plan?

The policy offers seven fund options where investors have an option to invest in any one or a combination of funds.

  • Equity Fund
  • Top 300 Fund
  • Equity Optimiser Fund
  • Growth Fund
  • Balanced Fund
  • Bond Fund
  • Money Market Fund

How are ULIP plans different from traditional insurance plans?

Unit Linked Insurance Products (ULIPs) are different from traditional insurance products because they invest in the capital markets and are subject to market risks. The NAV of fund units may fluctuate based on fund performance and the factors influencing capital markets.

Why should I buy a Smart Power Insurance Plan?

  • The policy offers two plan options to choose from, namely, level cover option and increasing cover option.
  • The policy offers two different fund options - Trigger fund option and Smart fund option.
  • Policyholders can switch between funds twice a year for free.
  • The facility of partial withdrawal is available.
  • The policy offers built-in accelerated total and permanent disability benefit.
  • Tax deductions are available under Section 80C and 10(10D) of the Income Tax Act, 1961. Death benefits are fully exempted from taxes.

How to buy SBI Smart Power Insurance Plan online?

Customers can buy SBI Smart Power Insurance Plan in three simple steps:

Step 1: Choose the policy term and premium payment mode.

Step 2: Fill up the policy application form online.

Step3: Upload required KYC documents and make a premium payment.

How long does the company take to settle the claim?

The company settles claims within 30 days, as per the guidelines provided by IRDAI.