SBI Smart Bachat is a low payment paying term endowment plan that offers numerous benefit of an insurance plan without paying the term amount over a long period of time. SBI life knows the customer needs and wants that make their plan according to that. It gives you the additional flexibility of to choose the payment paying term. This plan comes with two plan options
- Endowment plan
- Endowment plan with in-built Accidental Death & Total Permanent Disability (AD&TPD)
Endowment plan option
This option comes with a benefit of wealth creation through simple reversionary bonus and life cover throughout the whole policy term. Guarantee sum assured along with vested simple reversionary bonus will be provided after reaching the policy term.
Endowment plan with in-built Accidental Death & Total Permanent Disability (AD&TPD)
This option comes with a benefit of wealth creation through simple reversionary bonus and life cover throughout the whole policy term. Guarantee sum assured along with vested simple reversionary bonus will be provided after reaching the policy term. This plan also offers accidental death and total permanent disability of the life assured during the policy term.
Benefit of SBI Smart Bachat
Maturity benefit
This plan offers basic sum assured, vested simple revisionary bonus along with terminal bonus at the time of maturity. In case of paid-up policy, the paid-up sum assured will be paid instead of basic sum assured.
Death benefit
On the sudden death of the policyholder, the amount payable will be equal to the sum assured on death, vested simple revisionary bonus along with a terminal bonus or is equal to the 105% of the all premium paid till date.
Additional benefit
The additional benefit under this policy is as follows-
- Accidental Death- Accidental benefit payable will be in lump sum plus.
- Total Permanent Disability – Accidental benefit payable will be in lump sum plus. All the future premium will be waived off and the policy will continue till surrender, death or maturity whichever is earlier.
Rebate of SBI Smart Bachat
| Basic sum assured | Rebate on the premium per 1000 sum assured |
|---|---|
| 1 lac <sum assured < 3 lac | Nil |
| 3 lac <sum assured<5 lac | 3.00 |
| >5 lac | 4.00 |
Eligibility for SBI Smart Bachat
| Age limit | Minimum | Maximum | ||
| Option A 8 years |
Option B 18 years |
50 years | ||
| Maturity age | 65 years | |||
| Sum assured | Minimum – 1,00,000 | Maximum- No Limit | ||
| Payment paying term | Premium paying terms (years) 5 7 10 15 |
Policy terms (years) 10-25 10-25 15-25 20-25 |
||
| Premium paying frequency | Yearly, Half-Yearly, Quarterly, Monthly | |||
| Premium frequency loading | Half-Yearly- 51.00% of the annual premium Quarterly-26.00% of the annual premium Monthly-8.50% of the annual premium |
|||
| Premium amount (in Rs.) | Minimum | Maximum | ||
| Yearly Half-Yearly Quarterly Monthly |
5,100 2,600 1,350 450 |
No limit | ||
Surrender value
The policy will acquire the surrender value only if the premium paid for at least 2 years for the premium paid off 10 years and 3 years for the premium paying term of more than 10 years. The sum assured is also subject to change, the sum assured payable will be reduced to the paid-up sum assured. The paid up value will be paid on maturity or death of the individual. For option B, the AD &TPD benefit will also be reduced and AD &TPD paid-up sum assured will be paid.
Policy loan
The policy also provides an option to avail loan against the policy in the time of need. Loans will be available only if the policy acquires its surrender value and will be limited to the 90% of the surrender value. The loan interest rate will be declared by the company. The interest rate for the financial year 2016-17 compounded half yearly is 9%.
Tax benefit of SBI Smart Bachat
There is also a tax benefit provided under this policy, the tax redemption will be subject to the income tax law under section 80C.
Free lookup period
You have an option to return the policy before 30 days of the receipt of the policy day. In case you disagree with the policy terms and condition then you can return the policy and the full payment of the installment paid will be returned after deducting the documentation charges.
Exclusion
The benefits that this life insurance plan offers will be affected if the policyholder comes under the following situation-
- If the policyholder commits suicide within one year from the date of the inception of the policy. The beneficiary will get 80% of the all the premium paid. The policy becomes void and no death benefit is payable.
- The AD&TPD benefit will be ceased if the policyholder experience from the following-
- Infection
- Drug Abuse
- Self Harm Injury
- Criminal Acts
- War Of Civil Commotion
- Aviation
- Nuclear Contamination
- Hazardous Sport Or Pastimes
