SBI Life Smart Bachat Plan Review
State Bank of India has launched SBI Life Smart Bachat Plan on 24th January 2017 with a tagline “Kuch Apno Ke Liye, Kuch Apne Liye.” The Smart Bachat Plan is a new Individual, Non-Linked, Participating Endowment Assurance Plan. This new Endowment Plan from SBI was introduced to keep the obligation of paying the premiums over a long term at bay, i.e., it removes the burden of paying premiums throughout the policy term. Smart Bachat Plan also provides you with additional flexibility to choose your premium paying term as per your convenience. So, with this plan, you can safeguard your family’s future along with meeting your investment needs wisely. SBI Life has given a Unique Identification Number for this SBI Life – Smart Bachat Plan, i.e., 111N108V01.
State Bank of India Life has designed this plan to take responsibility of your family and loved ones in case of any emergency. 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. The Insured can choose any one option as per their requirements. But option once chosen cannot be changed. Also, the premiums under this plan are required to be paid for a limited tenure only. Here you can calculate the Premiums, Maturity benefits, and Death benefits usingSBI Life Smart Bachat Premium Calculator and Smart Bachat Premium chart.
Benefits & Key Features of SBI Smart Bachat Plan
SBI Smart Life Bachat Plan Benefits
Death Benefit:
If the life assured dies during the policy term, then the nominee of the policy will get death benefit for both the options 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 to the end of policy term, then the maturity benefit payable under both the variants is the Guaranteed Sum Assured on Maturity along with the vested bonuses and any Terminal Bonus provided the premiums have been duly paid. The Guaranteed Sum Assured on Maturity is equal to the Basic Sum Assured. In case of paid up policies, the Paid-up Sum Assured will be paid instead of the Basic Sum Assured.
Tax Benefit:
Premiums paid under this plan would be exempted from tax under Section 80C up to a limit of Rs. 1,50,000. The death benefit or the maturity benefit obtained are exempted under Section 10(10D) of the Income Tax Act. The Survival benefit would also be exempted from tax under Section 10(10D).
Key Features of SBI Life – Smart Bachat Plan
State Bank of India Life features this SBI Smart Bachat Plan as a unique product with so many features included. The features of SBI Life Smart Bachat Plan are as follows.
- SBI Bachat Plan is a traditional endowment plan where simple reversionary bonus and Terminal bonus are declared.
- There is a provision to choose the premium paying terms of 5, 7, 10, and 15 years is available under this plan.
- Flexible to choose from two options, i.e., Endowment option and Endowment Option with inbuilt AD & TPD Benefit depending on your insurance needs.
- Based on the financial goals, the insured may opt the policy term from 10 to 25 years.
- The Life Assured can get life cover throughout the policy term, i.e., even after the end of Premium Payment Term.
- Tax Benefits are applicable as per the rules of the Income Tax Act, 1961.
Eligibility Criteria for SBI Life New Plan Smart Bachat
| Minimum Entry Age for Life Assured |
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| Maximum Entry Age for Life Assured |
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| Policy Term in Years |
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| Premium Paying Term (Years) |
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| Premium Payment Mode |
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| Basic Sum Assured |
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| Maximum Age at Maturity |
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| Premium Frequency Loading |
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| Premium (for both variants) |
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SBI Life Smart Bachat Premium Calculator
You can calculate the minimum premium that has to be paid to take the policy by using the SBI Life Smart Bachat Premium Calculator. The Amount of premium to be paid depends on the Policy Term, Sum Assured, Premium Payment Modes and Age of the Insured. You need to enter some basic information like Proposer’s Name, Plan Variant, Date of Birth, Age, Policy Term, Premium Payment Term, Premium Frequency, and Minimum Sum Assured to calculate the Premium Value for this SBI Life Smart Bachat Plan.
Let us suppose Mr. Andrew of age 25 has chosen only endowment option of this SBI Smart Bachat Plan. With a basic sum assured of Rs. 2,00,000/-, he opted the Policy term of 10 years, and the mode of premium payment is Yearly. So, the yearly premium he should pay is as shown in the table below.
| Policy Year | Yearly Premium (Rs.) | Basic Service Tax (Rs.) | Swachh Bharat Cess (SBC) (Rs.) | Krishi Kalyan Cess (KKC) (Rs.) | Total Taxes (Rs.) | Yearly Premium with Taxes (Rs.) |
| First Year | 38,054 | 1,332 | 48 | 48 | 1,428 | 39,482 |
| Second Year Onwards | 38,054 | 662 | 24 | 24 | 714 | 38,768 |
How to Buy SBI Life Smart Bachat Plan ?
One can buy the SBI Life Smart Bachat Plan from the official website or nearest branch office. The documents required to buy Smart Bachat Plan of SBI are listed below.
- Application form / Proposal form along with the photo.
- Address Proof.
- Age Proof.
- Medical Reports (if required).
Claim Process of SBI Bachat Plan
The Insured/ Nominee can apply for the claim in the case of Death or Disability occurred due to the Sudden Accident of the Policyholder within the Policy Tenure or Maturity Period of the policy has completed. You can get the Claim form of this SBI Life Smart Bachat Plan from the SBI Regional Offices or from the Official Website of SBI. The Documents required in SBI Smart Bachat Claim Process are
- Claim Form.
- NEFT Form.
- Medical treatment prior to death, school/ college/ employer’s certificate, whichever is applicable.
- Proof of death.
- Age proof.
SBI Life Smart Bachat Plan Details
Paid-up Value:
If your premium paying term is less than 10 years, then you should pay the premiums for two years and if the premium paying term is more than 10 years, then you should pay for 3 years. If the future premiums are not duly paid, then your policy becomes a paid-up policy. For a paid-up policy, loan facility and bonuses are not applicable. Hence the benefits payable under this SBI Life Smart Bachat Plan are reduced and called as Paid-up benefits which are as given below.
- Death or Maturity Benefit = [Sum Assured *(Number of premiums paid/ Total number of premiums payable)+ Vested Reversionary Bonus + Terminal Bonus, if any].
- Accidental Death and Total Permanent Disability Benefit = AD & TPD x (Number of premiums paid/ Total number of premiums payable).
Surrender Value:
The policyholder can surrender the policy if it becomes paid-up, i.e., he/ she can surrender the policy after they have paid two or three full year premiums. On surrendering this SBI Smart Bachat Plan, the insured will be paid the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). The GSV and SSV are defined as follows.
- 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: Since this is a with-profit plan, it participates in profits of the company. Based on the applicable IRDA regulations, it gets a share of profits in the form of bonuses as a result of statutory valuation carried out every year.
Grace period: In the case of yearly, half-yearly, and quarterly modes, the grace period allowed for the payment of premiums after the due date under this Plan is 30 days. Whereas for the monthly mode, the Grace period allowed is 15 days. The life cover under this policy would continue during the grace period.
Revival: Revival is allowed for this SBI Life Smart Bachat Plan within 2 years from the date of the First Unpaid Premium (FUP).
Free Look Period: A Free Look Period of 15 days is allowed for the insured to review the terms and conditions of the policy. The policyholder can cancel the policy within this period if he/ she has found unsatisfactory. The premiums paid will be refunded to the life assured after deducting the service tax, relevant mortality charge, cess, etc.
Exclusions
- If the insured commits suicide within 12 months from the date of policy issued, then the premiums paid will be refunded, and the policy becomes void.
- If in case the policyholder commits suicide within 1 year from the renewal date, then a higher amount of the premiums paid until death or the Surrender Value acquired would be paid, provided the policy is in force.
- 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.
FAQ’s on SBI Life Smart Bachat Plan
1. What do I get if I survive the term of the policy ?
Ans. If you have purchased a term insurance policy, you may not receive any money from the insurance company upon maturity. However, some companies offer a term policy with a return of premium or the sum assured upon maturity.
2. Will my family receive the insurance amount immediately after my death ?
Ans. Usually, the proceeds of the insurance policy are made available to the nominee in a period of 3 months; provided all the relevant paperwork has been done.
3. Is there any loan facility available for this SBI Smart Bachat Plan ?
Ans. Loans are available under this plan up to a maximum of 90% of the Surrender Value.
4. What do I do if I lose/ misplace my insurance policy ?
Ans. One can apply for a duplicate document from the insurance company if they lost their policy. The Life Assured will receive a duplicate policy after paying the necessary fees and executing an indemnity bond. But you should carry a premium receipt and an identification card at least.
Here you can also refer other Savings plans of SBI such as SBI Life Smart Humsafar, SBI Life Smart Swadhan Plus, etc.