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Life Insurance

Post By Shweta

Decoded SBI Life - Smart Privilege

SBI Life Insurance has recently launched a High Income Group Unit-Linked, Non-Participating Life Insurance Plan – Smart Privilege. This plan gives you the option of choosing the fund and switching fund at no additional cost. We have decoded the entire product details in the article.

ABOUT THE PRODUCT:

A Unit-Linked Insurance Plan, Non-Participating Life Insurance Plan for High Network Individuals.
Insurance cum investment plan which gives the insured the opportunity to increase his wealth through investing in 8 funds.
This plan allows the insured to switch funds and premium redirections, for a unlimited number of times throughout the policy term.

WHY TO BUY THE PRODUCT:

This plan offers protection to your loved ones in the event of any unfortunate incident.
Liquidity available through partial withdrawal from 6^th policy year onwards (Subject to Terms & Conditions)
Flexibility of Premium Payment: This plan offers the insured to choose the premium payment term. It provides the option of paying the premium throughout the policy term or for a Limited Premium or Single Premium Payment Option.
Based on your risk-return appetite, this plan gives you the option to choose investments between 8 funds.

KEY FEATURES:

Maturity Benefit:

On Survival of the insured person up to the maturity, Fund Value will be paid as Lump Sum Benefit.
Alternatively, the maturity benefit can be availed in installments under Settlement options.

Death Benefit: Higher of the Fund Value or Sum Assured is payable as Death Benefit, with a minimum of 105% of the total premiums are paid till date of intimation of death.

Loyalty Additions: Loyalty Additions starting as early as the 6^th policy year onwards and for in-force policies only.

The percentages for Loyalty Additions are as below:

Last Day of the Policy year (nth)	Loyalty Additions (%)	Last Day of the Policy year (nth)	Loyalty Additions (%)
6^th	1.0%	20^th	5%
10^th	2.5%	25^th	6%
15^th	3.5%	30^th	7%

Switching options:

Option to switch your investment among the 8 funds available as per your convenience or investment needs.
This plan offers unlimited free switches throughout the policy term.
Minimum switch amount is Rs. 5,000.

Tax Benefit: Get Tax Benefit under Section 80C for the premium paid and Section 10(10D) for the benefit received on the maturity amount (Subject to Terms & Conditions).

PRODUCT SNAPSHOT:

Eligibility:

Age at Entry	Min: 8yrs (Regular/ Limited Premium Policies) & 13yrs (Single Premium Policies) Max: 55yrs
Age at Maturity	Min: 18yrs Max: 70yrs
Policy Term	10 to 30yrs (both inclusive) for Regular/ Limited Premium Policies 5 to 30yrs (both inclusive) for Single Premium Policies
Premium Payment Term (PPT)	Regular Premium (RP): Same as Policy Term Limited Premium Paying Term (LPPT): Min – 5yrs & Max: Policy Term less 1yr Single Premium (SP): Onetime payment at policy inception

Premium Amount:

Regular/ Limited Premium Amount (In multiples of Rs. 100):

Type	Minimum	Maximum
Yearly	Rs. 6 Lacs	No Limit
Half Yearly	Rs. 3 Lacs
Quarterly	Rs. 1.5 Lacs
Monthly	Rs. 50,000

Single Premium Amount (in multiples of Rs. 100):

Minimum	Rs. 6Lacs
Maximum	No Limit

Premium Modes: Single/ Yearly/ Quarterly/ Half-yearly/ Monthly

Sum Assured Multiple Factor (SAMF):

For Regular/ Limited Plan

For all Ages: Higher of 10 x Annualized Premium (AP) or (Policy term x 0.5 x AP)

For Single Premium (SP)

For Ages below 45 years: 1.25 x SP

For Ages more than or equal to 45yrs

Min: 1.10 X SP

Max: 1.25 X SP

CHARGES:

Policy Administration Charges: NIL throughout the policy term.

Fund Management Charges (FMC):

Fund Name	Fund Management Charges
Top 300 Fund	1.35% p.a.
Equity Optimizer Fund	1.35% p.a.
Equity Fund	1.35% p.a.
Growth Fund	1.35% p.a.
Pure Fund	1.35% p.a.
Midcap Fund	1.35% p.a.
Balanced Fund	1.25% p.a.
Bond Fund	1.00% p.a.
Discontinued Policy Fund	0.50% p.a.

Premium Allocation Charges: No premium allocation charges from the 6^th policy year onwards.

Policy Year	Limited/ Regular Premium	Single Premium
1 to 5yrs	2.50%	2%
6yrs onwards	NIL	2%

Premium Redirection Charges:

Unlimited switching of funds is allowed free of charge.

Partial Withdrawal Charge:

A Charge of Rs. 100 is applicable for every partial withdrawal in excess of 2 free partial withdrawals in the same policy year.

Mortality Charges:

It will be based on the insured’s age and Sum at Risk at the time of charge deduction
Generally, Mortality charges are deducted on the first business day of each policy month from the Fund Value by way of cancellation of units.

OUR VERDICT

A High-End ULIP Plans with relatively low on charges. Zero policy admin charge from inception and zero premium allocation charge from 6^th year onwards makes it a good investment proposition in the hand of the investor.Also unlimited free switches
Loyalty additions boost the investment, although the feature is quite common these days with most of the ULIP plans.
Unlimited free switches is an added advantage to the offering, however, the switching of funds is rarely exercised by ULIP investors.
Minimum premium of 6 lacs a year makes it a “not for all” plan and thus the plan targets only a Super HNI segment.
A decent ULIP plan with no fancy features to offer. Good option if you can afford to pay whopping 6 lacs a year.

Need assistance with getting this plan? Or looking for a life insurance policy and can’t figure out which one to go with? Don’t worry. Get in touch with us and we will help you select the policy that best meets your requirements. Write to us at support@oneinsure.com or call 86559-86559. Do note that we do not charge any consultation fees in providing any of the insurance-related services.

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