SBI Child & Education Plan
SBI is one of the most trusted state-owned chains of banks in India. It does not require any introduction because the brand itself stands for its reliability and best customer services for several decades.
However, SBI runs various insurance schemes in collaboration with other investment companies:
- BNP Paribas
- Value Line Pte.ltd
- Mac Ritchie Investments Pte.ltd
Among these companies, SBI itself holds the largest share though. SBI not only the most trusted banking solution in India but is also emerging as a great investment key to the Indian population. It aims still at customer satisfaction and wellbeing.
SBI Child Investment Plans
SBI provides the most trusted security and future solution to your child. SBI Life offers you the best options for saving and shaping your child’s future. It currently presents two most effective investment plans for your children –
- SBI Smart Scholar Investment Plan
- SBI Smart Champ Investment Plan
Prospects Of SBI Smart Scholar Investment Plan
SBI life smart scholar plan is basically a unit-linked plan for children. Various prospects of this plan are discussed below:
- Though the Smart Scholar Insurance plan is for the future benefit of the child, the policyholder would be the child’s parents.
- The investor is free to choose between the modes of payments available for Smart Scholar plan. You can either pay the value within a limited time period or pay a big amount at once in the opening of the policy.
- The investor, again, can choose between the options provided at the maturity of the investment. You can either draw the entire matured sum of money at the time of maturity or can decide to stay invested and receive the matured amount in installments for next 5 years.
- At the sudden demise of the SBI child insurance policyholder, the parent, the insured amount is directly received by the nominee of the investor which about 105% of total premiums payments made through his lifespan. At such times continuation of the plan is not necessary. Instead, the company continues the plan itself and at the completion of the tenure of the child insurance plan the value of the fund will be again received by the nominee of the investor.
- Besides, an extra adherence fee is received at regular intervals by the policyholder which equals to 1% of total value of the plan.
- The investor is allowed to make choices between 7 different investment funds while making the payment of the premiums in this child insurance plan – equity funds, best 300 funds, equity optimizer investment funds, growth schemes, balanced schemes, bond funds and money-market schemes.
- This plan permits to make a single withdrawal of a fraction of the sum invested. The lowest sum can be withdrawn is 5 thousand rupees and maximum up to 15% of total value of the policy.
- It allows switching between different funds from the onset of the second year of the policy. It allows maximum two switching opportunities for free.
- It allows two waiver facilities to the investors. In case of unexpected death of the investor before the completion of the term, SBI child and educational plan waive the remaining premiums to be paid. Moreover, a big amount of money will be received by the nominee in case of sudden death of the insured person or complete disability of the policyholder.
Eligibility Criteria For SBI Smart Scholar Plan
- At the time of entering the policy, the age of the policyholder must range between 18-57 years and the age of the child must range between 0-17 years.
- At the time of maturity of the term, the age of the policyholder must be maximum 65 years and the age of the child should range between 18-25 years.
- The duration of the policy term ranges from 8 to 25 years.
- The sum insured can be 1.25 times the solo payment in case of single payment and in case of regular payment; minimum sum can be 10/7 times of yearly premium or could be 0.5/0.25 times of yearly premium and maximum up to 1.25/5 times the single pay or else 20 times the yearly premium.
- The yearly premium sum can be minimum 75 thousand with no upper limits in single pay option and 24 thousand for 8 years or 50 thousand for 5-7years in limited pay option.
- Premium payment intervals can be a single, monthly, quarterly, semi-annual or annual pay.
SBI Smart Champ Investment Plan
It is non-linked traditional life insurance plan for your child. Prospects of SBIsmart child insurance plan are:
- It allows the participation of the policyholder along with the company in profit making by receiving a bonus at intervals.
- It also allows a premium waiver to the policyholder in case of sudden death or disability.
- It is a payback kind of plan which guarantees smart benefits to the child. It allows you to receive the 25 percent of the base sum insured for four consecutive years once your child reaches 18 years. Also, 25 percent of the total amount gathered as bonuses.
- At the completion of the term of the plan, you receive the last payment of the earlier mentioned benefit and the bonuses, if applicable.
- It also provides benefits against unexpected demise or complete disability of policyholder. At such times not only the remaining premiums are waived by the SBI life but the nominee also receives a huge amount of sum. The plan is continued by SBI and again on maturity, the insured value and the additional bonuses are paid to the nominee of the policyholder.
- Investor enjoys rebated on premium if the invested sum is 2 Lakhs or more.
- Besides, loans are allowed against the plan, up to 90 percent of the surrendered value.
Eligibility Criteria For The Smart Champ Plan
- Age of the policyholder at the time of entry must be between 21-50 years.
- Child’s age at entry must be from 0-13 years.
- Age at maturity can be maximum 70 years for the insured and 21 years for the child.
- Policy term will be calculated by subtracting the age of the child at entry from 21 years.
- Sum insured ranges between 1 lakh to 1 crore.
- Yearly premium amounts to 66 thousand in single pay and 6 thousand in regular pay, depending upon the maximum sum insured.
- Premium interval could be single, monthly, quarterly, semi-annual or annual, depending upon the choice of the policyholder.