SBI Life Smart Bachat Plan

SBI Life Smart Bachat Plan Introduction

SBI Life Smart Bachat Plan is a new Individual, Non-Linked, Participating Endowment Assurance Plan launched by State Bank of India Life on 24th January 2017. State Bank of India Life has designed this plan to take responsibility of your family and loved ones in case of any emergency. This new SBI Life Endowment Plan was introduced to keep the obligation of paying the premiums over a long term at bay. That means it removes the burden of paying premiums throughout the tenure of the policy. The Unique Identification Number of this SBI Life New Plan is 111N108V01. The insured should quote this UIN number in all relevant documents that are required to buy the policy.

This traditional, participating, limited premium payment term endowment plan safeguards the future of the policyholder’s family while enabling one to invest for financial goals. So, the premiums are required to be paid for a limited tenure only. The SBI Smart Bachat Plam comes with two options namely Endowment option and Endowment option with inbuilt Accidental Death and Total Permanent Disability (AD & TPD) Benefit. This Smart Bachat Plan also provides you with additional flexibility to choose your premium paying term as per your convenience. Here you can calculate the Premiums, Maturity benefits, and Death benefits using SBI Life Smart Bachat Plan Premium Calculator.

SBI Smart Bachat Plan Eligibility Conditions

Before buying the SBI Smart Bachat Plan, customers must know the eligibility levels and which conditions are applicable. Following are the SBI Life Smart Bachat eligibility requirements.

Features of SBI Smart Life Bachat Plan

1. It is a traditional endowment plan where reversionary simple bonus and Terminal bonus are declared.
2. The Smart Life Bachat Plan is flexible to choose from two options namely Endowment option and Endowment Option with inbuilt AD & TPD Benefit depending on the insurance needs.
3. The policyholder can get life cover throughout the policy tenure, i.e., even after the end of Premium Payment Term.
4. There is a facility to choose premium paying terms of 5, 7, 10, and 15 years is available under this SBI Bachat plan.
5. Depending on the financial goals, the insured may opt the policy term from 10 to 25 years.
6. Tax Benefits are applicable as per the existing rules under the Income Tax Act, 1961.

SBI Life – Smart Bachat Plan Benefits

Death Benefit

If the demise of the life assured occurs during the policy term, then the nominee of the policy will get death benefit for both the variants as follows.

• Sum Assured on death + Vested Simple Reversionary Bonuses + Terminal Bonus, if any.
• 105% of all the premiums paid till the date of death.

Where Sum Assured on death will be higher of Basic Sum Assured or 10 times annualized premium.

Maturity Benefit

If the insured survives till the end of policy tenure, provided the premiums have been duly paid, then the maturity benefit payable under both the options is the Guaranteed Sum Assured on Maturity along with the vested bonuses and any Terminal Bonus. The Guaranteed Sum Assured on Maturity is equal to the Basic Sum Assured.

Tax Benefit

The premiums paid up to 1.5 lakhs are exempted from tax under section 80C. The death benefit or maturity benefit received would also be exempted from tax under Section 10(10D) of the Income Tax Act.

How does this SBI Life Smart Bachat Plan works ?

The State Bank of India offers two options – Option A and Option B for the new SBI Life Smart Bachat Plan to choose from as per your needs. But option once chosen cannot be changed.

Option A: Endowment Option

This Endowment option offers the benefits of wealth creation through Simple Reversionary bonuses and life cover throughout the policy term.

Option B: Endowment Option with inbuilt Accidental Death and Total Permanent Disability (AD&TPD) Benefit

Along with the benefits as explained under Option A, this option provides you with benefit in case of Accidental Death or Accidental Total and Permanent Disability of the insured during the policy tenure. In the case of accidental death, the individuals will be paid the AD & TPD benefit in a lump sum and the applicable death benefit. If the policyholder suffers total permanent disability due to an accident, the AD & TPD benefit is again paid in lump sum, the future premiums are waived off and the death or maturity benefit would be paid as applicable.

SBI Life Smart Bachat Premium Calculator

You can calculate the premium rate of this plan using this SBI Smart Bachat Premium Calculator. Following are the required details to calculate the premium. The SBI Life Smart Bachat Calculator is used to calculate the premium amount for yearly, half-yearly, quarterly and monthly modes. The details required to calculate the premium amount of the SBI Life Smart Bachat Plan are as under:

• Proposer Name.
• Plan.
• Date of Birth.
• Gender.
• Age.
• Policy Term.
• Premium Paying term.
• Sum Assured.
• Premium Frequency.

After entering all the details, one can calculate the premiums and benefits of this policy.

SBI Bachat Plan Benefit Illustration

Here we have provided an example to understand clearly about the Smart Bachat plan. Suppose Mr. Henry of age 25 taken this SBI Smart Bachat Plan (Endowment option). The Policy term he has chosen is 10 years with a basic Sum Assured of Rs. 2,00,000/- and the mode of premium payment is Yearly. So, the yearly premium he should pay is as shown in the table below.

You can also check the Surrender value, Maturity benefits, and Benefits payable on death in the given SBI Smart Bachat Premium Chart.

How to Buy SBI Life Smart Bachat Plan ?

One can buy the SBI Smart Bachat Plan in two ways, i.e., either in online or offline mode. If you want to buy this plan in online mode, then you should refer the official website of SBI. For offline mode, you should visit the nearest branch office. Following documents are required to buy SBI Life Smart Bachat Plan.

• Application form/ Proposal form.
• Address proof.
• Age proof.
• Income proof.
• PAN Number.
• Medical reports (if required).

Claim Process of SBI Life New Endowment Plan

The policyholder can claim the SBI Smart Bachat plan offered by State Bank of India after the completion of the policy term. In the case of eventual death of the insured, the nominee can claim the policy instead of the Life assured. The documents required for claim procedure under SBI Life Smart Bachat Plan are given below.

• Original Policy Document.
• NEFT form.
• Cancel check or Bank Passbook xerox.
• Discharge form.
• Death certificate.
• Proof of Accident/Disability (For rider circular).
• Employer/ College/ School certificate for proof.
• Medical Treatment before the death.

Additional Information about SBI Life New Plan Smart Bachat

Paid-up Value:

If the premium paying term is less than 10 years, then you should pay the premiums for 2 years and if the premium paying term is more than 10 years, then you should pay for three years. Because if the future premiums are not paid, then the policy becomes a paid-up policy. Also, loan facility and any bonuses cannot be availed for the paid-up policy. The benefits payable under this SBI Smart Bachat plan are reduced and are termed as Paid-up benefits which are as shown below.

• Death/ Maturity Benefit = [Sum Assured *(number of premiums paid/total number of premiums payable)+ vested reversionary bonus + Terminal Bonus].
• Accidental Death & Total Permanent Disability Benefit = AD & TPD x (number of premiums paid/ total number of premiums payable).

Surrender Value:

The Insured can surrender the policy if it becomes paid-up. That means the policyholder can surrender the policy after he has paid two or three full year premiums. On surrendering this SBI Life Smart Bachat Plan, you will be paid the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). Where,

• GSV = {(Total premiums paid* GSV Factor of premiums) + (reversionary bonus * GSV Factor of bonus)}.

• SSV = SSV Factor * (Reduced Paid-up Sum Assured + vested reversionary bonuses).

Bonus Rates: This is a with-profit plan and participates in the profits of the company’s life insurance business. It gets a share of profits in the form of bonuses as a result of the statutory valuation carried out every year based on the applicable IRDA regulations.

Grace Period: A grace period of 30 days is allowed under this SBI Life Bachat Plan for payment of premiums after the due date in case of yearly, half-yearly, and quarterly modes. Whereas for the monthly mode, the Grace period is 15 days. The life cover under this policy would continue during the grace period.

Free Look Period: A cooling off period or a free look period of 15 days is granted to the insured after the policy issuance to review the policy terms and conditions. If the policyholder found this plan unsatisfactory, then he/ she can cancel the policy within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.

Revival: Revival is allowed within 2 years from the date of the first unpaid premium. The Life Assured would be required to pay the outstanding premium and any interest charged by the insurer to renew his/ her policy.

Exclusions

• If the policyholder commits suicide within a year from the date of policy issued, then the premiums paid will be refunded, and the policy becomes void.
• If in case the insured commits suicide within 12 months from the date of revival, provided the policy is in force, then a higher amount of the premiums paid until death or the Surrender Value acquired would be paid.
• Under the Accidental Death and Total Permanent Disability (AD & TPD) Benefit, if accidents and disabilities were occurred due to war, acts of criminal nature, suicide, alcohol consumption, drug abuse, nuclear contamination, infection, aviation and participation in hazardous activities are excluded.

Here in our policydunia.com site, we will provide details about all the SBI Life Savings Plans. So, keep visiting our site regularly.