SBI Life - Smart Money Planner Plan

Death Benefit

In the event of death of the life assured during the term of the policy, the death benefit is higher of Sum Assured on Death plus vested simple reversionary bonuses plus terminal bonus or 105% of the total premiums paid, whichever is higher is payable. Under this policy, Sum Assured on Death is higher of basic sum assured, guaranteed sum assured on maturity, or multiple of annualized/single premium.

 

Multiple for Limited Premium is 10 times when age at entry is less than 45 years and it is 7 times when age at entry is 45 years & above. Multiple for Single Premium is 1.25 times when age at entry is less than 45 years and it is 1.10 times when age at entry is 45 years & above.

Survival Benefit

In case of survival of the life assured during the benefit payout period, you will receive the regular payouts at the end of each policy year. This payout is equal to 20% of the basic sum assured for 5 years under Plan 1 & Plan 3 and it is 10% of the basic sum assured for 10 years under Plan 2 & Plan 4. This payout does not include final survival payout installment.

Maturity Benefit

On survival of the life assured till maturity, Guaranteed Sum Assured on Maturity along with vested reversionary bonuses plus terminal bonus is payable. Guaranteed Sum Assured on Maturity is 10%/20% of the basic sum assured, depending on the plan opted.

Bonus

Simple Reversionary Bonuses is declared as a percentage of the basic sum assured and when declared become guaranteed benefit under the plan. Future bonuses are non-guaranteed and it depends on future profits. Simple Reversionary Bonus for the first three years is guaranteed as at least 2.5% of the basic sum assured. Terminal Bonus is paid at surrender, maturity, or death, whichever is earlier.

Loan Benefit

The maximum loan amount available under this plan is up to 90% of the surrender value.

Surrender Value

For limited premium policies, the surrender value can be acquired on payment of at least 2 full policy years’ premiums for Plan 1 & Plan 2 and the premium payment for 3 full policy years is required to acquire the surrender value under Plan 3 & Plan 4. For single premium policies, the surrender value can be acquired any time during the policy term. The Surrender Value payable is higher of Guaranteed Surrender Value or Non-Guaranteed Special Surrender Value.

Tax Benefit

This plan provides tax benefits under section 80C & 10(10D) of the Income Tax Act, subject to change from time to time.

No rider is available with this plan.

Let’s understand the plan with the help of the below illustrated example.

Mr. Raman at 30 years, wants to buy a plan that provides both savings and protection. He opts to buy SBI Life - Smart Money Planner with the policy term of 15 years and the sum assured of Rs 1 Lac.

Scenario A: Raman Survives through the Policy Term

On survival of Raman till the end of the policy term, Rs 1 Lac plus plus along with vested reversionary bonuses plus terminal bonus is payable. The maturity benefit can be used to build wealth, so you can achieve your financial obligations.

Scenario B: Raman dies during the Policy Term

On the death of Raman during the policy term, Rs 1 Lac plus vested simple reversionary bonuses plus terminal bonus or 105% of the total premiums paid, whichever is higher is payable. The death benefit provides financial security for the family.