SBI Life Smart Privilege Benefits

SBI Life Smart Privilege is a non-participating Unit Linked Insurance Plan (ULIP) offered by SBI Life Insurance Company Limited. It offers two-way benefits to the investors, insurance coverage, and investment opportunities in 11 different types of funds. 

Eligibility Criteria

The SBI Life Smart Privilege plan comes with the following eligibility conditions: 

Key Features of SBI Life Smart Privilege Plan

• Comprehensive Protection

With the SBI Life Smart Privilege policy, the policyholders can build a corpus while enjoying life insurance benefits. The best part is that in case of unfortunate death of the life assured, the company provides financial protection to the family. 

• Varied Investment Fund Options

Choose from 11 fund options to match your investment strategy.

• Free Look Period

The company gives a 15-day free look period to investors to review the policy terms and conditions. If not satisfied, they can cancel the policy within 15 days of receiving the policy documents. 

• Grace Period

For yearly, half-yearly & quarterly premiums, a grace period of 30 days is allowed. But if premiums are paid monthly, the grace period will only be 15 days. 

• Free Switches

The policy allows investors to switch their investments among the available 11 funds. Unlimited free switches are available throughout the policy term.

Note: The minimum switch amount is ₹5,000.

• Partial Withdrawals
  • Partial withdrawals can be made after the 5th policy year or once the policyholder turns 18, whichever is later. The smallest amount you can withdraw is ₹5,000 (in multiples of ₹1,000). While the maximum withdrawal amount can be 15% of your fund value. 

• • You can make 2 free partial withdrawals per policy year. Additional withdrawals will cost a fee of ₹100 each. Unused free withdrawals cannot be carried over to the next policy year. 

• • You can make up to 4 partial withdrawals in a year. For policies of 10 years or less, you can make a total of 10 withdrawals. For policies longer than 10 years, you can make up to 15 withdrawals over the policy term. 

• Premium Redirection

A premium redirection facility is available from the first policy year. Unlimited premium redirections are available, so you can redirect your premiums as many times as you want for free throughout the policy term. 

Also, this applies to future premiums and does not affect the existing units in your fund.

Key Benefits of SBI Life Smart Privilege Plan

• Maturity Benefit

If the policyholder survives until the policy maturity date, the fund value will be paid out as a lump sum.

• Death Benefit

In case of the policyholder's death during the policy term, while the policy is active, the beneficiary will receive the higher of:

• The fund value at the date of death notification or 
• The basic sum assured minus any applicable partial withdrawals (APW) or
• 105% of the total premiums paid up to the date of death, minus any applicable partial withdrawals (APW). 

****APW refers to any partial withdrawals made in the last 2 years before the death of the policyholder.

The nominee or beneficiary can choose to receive the death benefit as a lump sum or in installments over 2 to 5 years under the 'Settlement' option as yearly, half-yearly, quarterly, or monthly payouts. 

• Loyalty Additions

Starting from the end of the 6th policy year, the policyholders get Loyalty Additions at regular intervals until the policy term ends. 

How loyalty additions for SBI Life Smart Privilege are calculated? 

These are calculated as a percentage of the average fund value over the past 12 months. Below is the table describing percentages of Loyalty Additions. 

• Tax Benefit
  • Taxpayers can get tax deductions of up to Rs. 1.5 lakhs u/s 80C of the IT Act, 1961. 

• • Maturity amounts (less than 2.5 lakhs) will be free of taxes u/s 10 (10D) of the Income Tax Act of 1961.  

Illustration of SBI Life Smart Privilege Plan 

Let’s understand the benefits offered by the SBI Life Smart Privilege plan with an example. 

Mr. Khatri has chosen the  SBI Life Smart Privilege policy. Here are his basic details.  

Maturity Benefit (Lumpsum)

Death Benefit (Lumpsum)

In case of Mr. Khatri’s unfortunate death at the end of the 10th policy year, the death benefit, based on the assumed investment returns, will be: 

Disclaimer: The above figures are for illustrative purposes only. The assumed rates of returns @4% and @8% p.a. are also illustrative and are subject to market risks. 

Investment Funds under SBI Life Smart Privilege Plan

1. Top 300 Fund
2. Balanced Fund
3. Bond Fund
4. Equity Optimizer Fund
5. Bond Optimizer Fund
6. Money Market Fund
7. Equity Fund
8. Growth Fund
9. Pure Fund
10. Midcap Fund
11. Corporate Fund

Suicide Exclusion

If the policyholder dies due to suicide within 12 months from the start of the policy or its revival, the nominee or beneficiary will receive the fund value available on the date of the death notification. Additionally, any charges (except for Fund Management Charges) deducted after the date of death will be added back to the fund value available on the date of death notification.

Charges for the SBI Life Smart Privilege Plan

Premium Chart

How to Buy SBI Life Smart Privilege Plan From InsuranceDekho? 

Follow the below steps to buy SBI Life Smart Privilege Plan From InsuranceDekho. 

1. Visit the InsuranceDekho website, and under the “Insurance” tab, click on “Life Insurance.”
2. Enter all the necessary details, including name, date of birth, gender, and mobile number. Once done, click on the "View Plans for Free" button. 
3. You’ll see the list of all the available life insurance plans. Among them, you can select the “SBI Life Smart Privilege” plan. 

Note: It’s better to decide the below things beforehand

• Policy term
• Premium amount and Premium payment term
• Fund pattern from among the various fund options

But if you feel confused and need assistance, you can connect with our relationship manager at +91-7551196989. They will help you compare different plans and choose the best one according to your unique needs. 

1. In this step, provide details about your education, occupation, and annual income. Click on the “Next Step” button. 
2. Carefully review the premium amount and click on the "Accept and Pay" button to complete the payment. 
3. In many situations, the company asks individuals to undergo a medical evaluation as the policy or disapproval depends on the report. 
4. If everything goes well, the policy will be issued, and you’ll receive the final confirmation on your registered mobile number or email ID. 

Frequently Asked Questions (FAQs)

Ques 1. I have bought the policy but now I am not satisfied and want to cancel it. Is it possible? 

Ans. Yes, of course! You have a 15-day free look period to cancel the policy if you are not satisfied. 

Ques 2. Are SBI Smart Privilege returns tax-free?

Ans. Policyholders can enjoy the following tax benefits: 

• Tax deductions of up to Rs. 1.5 lakhs u/s 80C
• less than 2.5 lakhs maturity amounts  will be free of taxes

Ques 3. Is a loan facility available under the SBI Life Smart Privilege plan? 

Ans. No! A policy loan facility is not available under the plan.

Ques 4. Why should I choose the SBI Life Smart Privilege plan?

Ans. The plan offers a robust life cover that ensures your family's financial stability in case of unforeseen events.

• Choose from multiple premium payment terms and fund options. 
• Enjoy tax benefits on the premiums paid. 
• Withdraw money partially according to your needs.
• Build a corpus for your retirement.