Investing for future goal is a very important part of our life. SBI Life Smart Power Insurance is a non-participating unit linked insurance plan that keeps your financial needs in check. The product offers a reasonable premium amount and a good return on your investment.
The plan comes with two options to choose from-
- Level cover option- Sum assured at the time of inception remains the same.
- Increasing cover option- The initial sum assured increase by 10% starting from 6th policy year and after every 5 years.
Fund options
Trigger Fund Option– In this option the fund amount is distributed, 80% is invested in the Equity Fund and 20% would be allocated to the Bond Fund. The fund allocation may alter due to the market conditions which are rebalanced by maintaining 80:20. This is known as triggered strategy.
Smart Fund Option- In this option the fund amount is chosen by the policyholder from the available 7 funds.
- Equity Fund
- Growth Fund
- Bond Fund
- Top 300 Fund
- Money Market Fund
- Balanced Fund
- Equity Optimizer Fund
Investment Funds
- Equity fund: The objective of this fund is to provide high equity exposure targeting high returns in long terms.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Equity and equity related instruments | 80% | 100% | High |
| Debt instrument | 0% | 20% | |
| Money market instrument | 0% | 20% |
- Top 300 funds: The objective of this fund is to provide long terms capital appreciation by investing in the stock of top 300 companies on NSE
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Equity | 60% | 100% | High |
| Cash and Money market instrument | |||
| 0% | 40% |
- Equity optimizer fund: The objective of this fund is to provide equity exposure targeting high returns in long terms capital gains.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Equity and equity related instruments | 60% | 100% | High |
| Debt instrument | 0% | 40% | |
| Money market instrument | 0% | 40% |
- Growth fund: The objective of this fund is to provide in long terms capital appreciation through investing primarily in Equity and equity related instruments and small part invested in Debt and Money market instrument for risk reduction.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Equity and equity related instruments | 40% | 90% | Medium to high |
| Debt instrument | 10% | 60% | |
| Money market instrument | 0% | 40% |
- Balance fund: The objective of this fund is to provide an accumulation of income through investing in Equities and fixed income securities with an attempt maintain a balance between return and safety.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Equity and equity related instruments | 40% | 60% | Medium |
| Debt instrument | 20% | 60% | |
| Money market instrument | 0% | 40% |
- Bond fund: The objective of this fund is to provide relatively safe and less volatile investment option mainly through debt instrument and accumulation of income through investment in fixed income securities.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Debt instrument | 0% | 40% | Low to Medium |
| Money market instrument | 60% | 100% |
- Money Market fund: The objective of this fund is to park the funds in liquid and safe instruments so as to avoid market risk in temporary bases.
| Assets | Minimum | Maximum | Risk Profile |
|---|---|---|---|
| Debt instrument | 0% | 20% | Low |
| Money market instrument | 80% | 100% |
Benefit
Maturity benefit
On the survival of the policyholder and the plan attains its maturity the fund value is paid in lump sum. The policyholder has an option to get this amount in installment. The installments can be monthly/ yearly/half-yearly. During this period the fund value will remain invested in the fund and only fund management charges are borne by the policyholder.
Death benefit
If the policyholder unfortunately demises the higher of sum assured or fund value is payable or 105% of the premium paid till date will be payable to the nominee.
Additional benefit
This plan comes with a flexibility option to choose from and design your own financial needs according to the requirement of future needs.
Switching option
You can switch between the available 7 fund options present under the smart fund option. Minimum switch amount is Rs.2000 and two free switches are allowed in one policy year after that Rs. 100 charged per switch. Unused switches will not be carried forward.
Premium redirection option
You can redirect the premium from the second policy year in between the available 7 fund options present under the smart fund option. One free switch is allowed in one policy year after that Rs. 100 charged per switch. Unused switches will not be carried forward
Portfolio transfer option
You have an option to transfer the plan between the available fund option- Trigger Fund or Smart Fund at any policy anniversary year. This can be done by giving a written intimation to the company at least 2 months before the policy anniversary year. This option can be utilized only 2 times in the entire policy free of charges.
Partial withdrawal
Partial withdrawal can be made from the 6th policy year. The minimum amount that can be withdrawn is Rs.2000 and the maximum is 15% of the available fund value. Two withdrawals can be made in a policy year free of charges and after that Rs.100 will be charged. Maximum of four withdrawals can be made in a policy year and a total of 10 in case of 10 years and 15 in case of 15 years can be made in the entire policy term. No withdrawal is allowed if the fund value is reduced to the 50% or less of the premium paid.
Eligibility
| Age at entry | Minimum– 18 years | Maximum– 45 years | |
| Age at maturity | 65 years | ||
| Plan type | Regular premium | ||
| Policy term | 10,15 to 30 years | ||
| Premium frequency | Yearly/Half-Yearly/Quarterly/Monthly | ||
| Premium range | Premium frequency | Minimum | Maximum |
| Yearly Half-Yearly Quarterly Monthly |
15,000 9,500 5,500 2,000 |
No limit | |
| Sum assured | Minimum | Maximum | |
| Higher of{(10 X AP) or (0.50 X Term X AP)} | 20X AP | ||
Surrender value
You can surrender the policy at any time-
If the surrender is requested during the first five policy years
The lock-in condition will apply. The fund value after the deduction of applicable discontinuance charges will be transferred to “Discontinued Policy Fund” and this value will be available on the 6th policy year.
If the surrender is requested after five policy years
The fund value will be paid immediately.
Tax Benefit
This policy offers its policyholder income tax exemption as per the Income Tax Act, under section 10
Free lookup period
You will get a free lookup period of 15-30 days. If you are not satisfied with the policy, you can return the policy and your full money will be refunded after deducting the documentation charges.
Revival
Revival period of 2 years will be given form the date of first unpaid premium. You can revive the policy by paying all the due premiums and underwriting acceptance which is communicated to you by post.
Exclusion
If the life assured commits suicide then the policy becomes void. The fund value accumulated as of the date of intimation of death will be payable and the policy will cease.
