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SBI Life Smart Privilege

SBI Life Smart Privilege is a unit linked, non-participating life insurance plan by SBI Life Insurance. The policy is specially designed for Ultra High Net-worth Individuals (UHNIs). Along with life insurance cover, users can, under this plan, grow their wealth by choosing from eight funds with unlimited free switches and redirections.

About SBI Life - SBI Life is one of the leading life insurance providers in India. It is a joint venture between public sector bank State Bank of India and leading global insurer BNP Paribas Cardif. The insurer offers a range of life insurance and pension products at affordable rates.

(Note - All the information contained in this page has been sourced from the official website of SBI Life Insurance.)

Features of SBI Smart Privilege Plans

The features of SBI Smart Privilege plan are as under:

  • Life insurance cover with market-linked returns
  • Loyalty additions starting from the sixth policy year for in-force policies
  • Option to pay premiums throughout the term or for a limited period or through a single payment
  • Option of eight different funds, including midcap and pure fund
  • Unlimited free switches and premium redirection
  • Partial withdrawals can be made from 6th policy year or 18 years of age

Benefits of SBI Smart Privilege Plans

The benefits offered under SBI Smart Privilege plan are as follows:

  • Death benefit: The higher of sum assured or fund value shall be paid, with a minimum of 105% of total premiums paid till the intimation of the policyholder’s death.

  • Maturity benefit: If the life assured outlives the policy term, the fund value shall be paid in a lump sum.

Eligibility Criteria

Age at entry

Minimum:

8 years for regular/limited premium policies

13 years for single premium policies

Maximum: 55 years

Age at maturity

Minimum: 18 years

Maximum: 70 years

Policy term

10 to 30 years (both inclusive) for regular and limited premium policies

5 to 30 years (both inclusive) for single premium policies

Sum Assured

For regular/limited premium:

For all ages: Higher of 10 x annualized premium (AP) or (policy term x 0.5 x AP)

For single premium:

For ages below 45 years: 1.25 x SP

For ages equal to or more than 45 years:

Minimum 1.10 x SP Maximum: 1.25 x SP

Premium Details

Premium payment term

Regular premium: same as policy term

Limited premium paying term -

Minimum: 5 years

Maximum: Policy term less 1 year

Single premium - one-time payment at policy inception

Regular/limited premium amount (in multiples of Rs. 100)

Yearly - Rs. 6,00,000

Maximum - No limit

Half-yearly - Rs. 3,00,000

Quarterly - Rs. 1,50,000

Monthly - Rs. 50,000

Policy Details

  • Fund Options: -

    • Equity Fund (SFIN: ULIF001100105EQUITY-FND111)
    • Top 300 Fund: (SFIN: ULIF016070110TOP300-FND111)
    • Equity Optimiser Fund: (SFIN: ULIF010210108EQTYOPTFND111)
    • Growth Fund: (SFIN: ULIF010210108EQTYOPTFND111)
    • Balanced Fund (SFIN: ULIF004051205BALANCDFND111)
    • Bond Fund (SFIN: ULIF002100105BONDULPFND111)
    • Pure Fund (SFIN: ULIF030290915PUREULPFND111)
    • Midcap Fund: (SFIN: ULIF031290915MIDCAPFND111)
  • Switching Option - One can switch investments among the eight available funds to suit changing investment needs. The minimum switch amount is Rs. 5,000. Unlimited free switches are available throughout the policy period.

  • Partial Withdrawal - This can be made after fifth policy anniversary or on the policyholder attaining 18 years of age, whichever is later. Two free partial withdrawals are allowed during a policy year. A charge of Rs. 100 per withdrawal will apply in excess of free partial withdrawal.

  • Loyalty Additions - In-force policies will be rewarded with loyalty additions from the end of the sixth policy year and on regular intervals, till the end of the selected policy period. The additions shall be calculated as a percentage of the average fund value, over the first day of last twelve policy months prior to allocation date of loyalty additions.

  • Tax Benefits - Tax deduction can be claimed under Section 80C of the Income Tax Act, 1961, for premiums paid toward SBI Smart Privilege plan. The maximum deduction that can be claimed under this section during a financial year is Rs. 1,50,000. Proceeds from the policy are tax-free in the hands of the receiver under Section 10(10D) of the Income Tax Act.

Documents Required For Buying SBI Life Smart Privilege Plan

An individual will have to submit certain documents to avail SBI Smart Privilege plan. The documents include:

  • Identity Proof - PAN card, Aadhaar card, Passport, etc.
  • Address Proof - Aadhaar card, Passport, Driving license, etc.

Exclusion

Suicide: If the life assured - sane or insane - commits suicide, within a year from the date of inception of policy or revival of the policy, the company will not pay the death benefit. The fund value, as on the date of the life assured’s demise, would be paid, and the contract will cease.

Review of Sbi life smart privilege

SBI Smart Privilege plan has been specially designed for the needs of Ultra High Net-worth Individuals. It comes with benefits like regular loyalty additions, investment flexibility and market-linked returns. Users can also financially protect their loved ones through the life insurance component of the plan as they multiply their investments.