SBI Life Smart Guaranteed savings policy Introduction
SBI Life Smart Guaranteed savings policy is a savings plan with Guaranteed maturity value and life cover throughout the policy term. SBI Life Smart Guaranteed savings policy will have minimum premium of Rs.15,000. In SBI Life Smart Guaranteed savings policy, buyers of the policy will get Guaranteed additions at the end of each policy year, depending upon on the cumulative installment of premium paid. These guaranteed additions will be added at the simple rate of 5.5% or 6% and will apply to cumulative basic premiums paid, based on the annually selected premium. In SBI Life Smart Guaranteed savings plan Premium payment is limited to 7 years and enjoy the benefits including life cover throughout the policy term of 15 years.
SBI Life Smart Guaranteed savings policy Guaranteed Additions
Guaranteed Additions: Guaranteed additions are added at the end of each policy year on the sum of the basic premiums paid by the policyholder till date. The percentage of guaranteed additions will be based on the installment premium selected. These guaranteed additions are payable on maturity of the policy along with the basic sum assured or on earlier death of life assured along with the sum assured on death.
Percentage(%) of Guaranteed additions on the cumulative basic annual premiums paid are tabulated below
Guaranteed Additions Percentage
|Yearly Premium (Rs.)||Percentage(%) of Guaranteed additions|
|15,000 – 29,000||5.5%|
|30,000 – 75,000||6%|
Documents related smart Guaranteed savings plan are attached below
Terms and Eligibility Conditions of SBI Life Smart Guaranteed savings policy
|Maximum maturity age||
|Premium payment term||
|Premium amount (multiples of 1000)||
Benefits of SBI Life Smart Guaranteed savings policy
Maturity Benefits: After completion of the policy term, the policyholder will receive basic sum assured + accrued guaranteed additions.
Death Benefits (for In-force policies): If in case of unfortunate death of the policyholder, then nominee will receive ‘Sum Assured on death’ + accrued guaranteed additions. Sum Assured on death means Higher of (Basic Sum Assured or 10 times the Annualized Premium or 105% of total premiums paid as on the date of death).
Tax Benefits: Tax deduction under Section 80C is available. However, in case the premium paid during the financial year, exceeds 10% of the sum assured, the benefit will be limited up to 10% of the sum assured. Tax exemption under Section 10(10D) is available at the time of maturity/surrender, subject to the premium not exceeding 10% of the sum assured in any of the years during the term of the policy. However, death proceeds are completely exempt. For more information regarding Tax Benefits, visit www.taxqueries.in.
SBI Life Smart Guaranteed savings policy Buying procedure
Documents needed to apply for an SBI Life Smart Guaranteed savings plan are given below
- Identity Proof
- Age Proof
- Income Proof
- Address Proof
- PAN Number
Proposal forms and Policy documents of SBI Life Smart Guaranteed savings plan are attached below
Claim Procedure of SBI Life Smart Guaranteed savings Policy
List of documents to be submitted during claim.
- Duly filled claim form
- Original policy document
- Original death certificates
Documents to be submitted for claim settlement are attached below,
SBI Life Smart Guaranteed savings Policy Customer care
If any doubts regarding this SBI Life Smart Guaranteed savings policy, call toll-free number 1800-22-9090 or 1800-425-9010 or SMS ‘CELEBRATE’ to 56161 or E-mail to firstname.lastname@example.org.
SBI Life Smart Guaranteed savings policy Premium Calculator
Details required for calculating premium under SBI Life Smart Guaranteed savings policy are
Premium paying mode:
Premium paying term:
SBI Life Smart Guaranteed savings policy Example
Rajesh aged 25 years interested in buying the SBI Life Smart Guaranteed savings policy, his following details about this plan are given below
Policy term : 15 years
Premium : Rs.50,000
Premium paying mode : Yearly mode
Premium paying term : 7 years
Now, Rajesh premium details about this plan are tabulated below
Basic cover details
|Term (in Years)||Premium payment term (in Years)||Sum assured ( Rs.)||Yearly Premium ( Rs.)|
|Policy Year||Basic Premium(Rs.)||Service tax (Rs.)||Premium with Service tax & cess (Rs.)|
|Second Year onwards||50,000||773||50773|
Additional Information of SBI Life Smart Guaranteed savings policy
Paid up value: The policy will acquire a paid up value only if the premiums have been paid for at least 2 full years. The sum assured payable on death or maturity of a paid up policy, will be reduced sum assured. This reduced sum assured is called as paid-up sum assured.
- Paid up sum assured on death: Sum assured on death x (No. of premiums paid/ Numbers of premium originally payable)
- Paid up sum assured on maturity: Basic sum assured x (No. of premiums paid/ Numbers of premium originally payable)
- Reduced guaranteed additions: Original guaranteed addition x (No. of premiums paid/ Numbers of premium originally payable)
Surrender value: The policy will acquire a surrender value only if the premiums have been paid for at least 2 full years. You may terminate paid up policy before maturity by surrendering the policy for a surrender value.
Guaranteed Surrender value (GSV): The GSV will be equal to GSV factors multiplied by the premiums paid excluding Service tax and cess.
GSV factors for various policy durations are given below:
|Policy Year||As % of basic premium paid|
|4 -7 years||50%|
In detail, Document of Guaranteed addition surrender value is attached below
Special Surrender value(SSV): Special surrender value will be arrived at by multiplying PUV on maturity with SSV factors.
Policy loans: Loans will be available after policy acquires surrender value. The policy loan will be limited to a maximum of 90% of surrender value.
Policy Revival: You may reinstate your lapsed policy within 2 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements(if any). On revival, your policy will be eligible for future Guaranteed additions.
Free look period: If you are not satisfied with this policy, you can return the policy within 15 days of receiving the policy contract. Your premiums will be refunded by deducting some charges of stamp duty and medical examination(if any).
Suicide clause: If the policy holder commits suicide for any of the reasons within 12 months of date of commencement of risk or from date of revival, then the policy will become null and void and no claim will be paid. However, 80% of premium for what the policyholder had paid will returned to his/her assignees or nominees.
FAQ’s of SBI Life Smart Guaranteed savings policy
Is there any loan facilities available under this plan?
Yes, loans are available under this SBI Life Smart Guaranteed savings policy. The policy loan will be limited to a maximum of 90% of surrender value.
What happens if policyholder stop paying premium?
If you stop paying the premium within grace period then your policy will be lapsed. However, you can reinstate your policy within 2 years of First Unpaid premium.
Can you provide brief illustration about guaranteed addition % under this policy?
Suppose Ravi aged 30 years has chosen premium of Rs.60,000 for 7 years premium paying term. Now, Ravi’s Basic sum assured will be Rs.4,26,000
|End of Policy Year||Annual Basic premium paid (Rs.)||Cumulative premium(Rs.)||Value of Guaranteed addition@6% ( Rs.)|
- Total Guaranteed additions in (Rs.) – 3,02,400