SBI Life Smart Champ Insurance
SBI Life Smart Champ Insurance
  • Limited Premium Payment
  • Total Permanent Disability Cover
  • Tax Benefit
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SBI Life Smart Champ Insurance

SBI Life Smart Champ Insurance plan is a participating non-linked individual life insurance plan. The product has been developed to provide life coverage along with savings to secure educational needs for your child. It also ensures financial security for the uncertainties of life in the future, even if you are not there to take care of your family. As the SBI Life Smart Champ Insurance plan is a participating plan, it participates in profits and accumulates bonuses after every policy year ends until the child turns 18 years of age.

Eligibility Criteria

FactorsValues
Entry AgeMin: 21 years
Max: 50 years
Maturity Agei) For Life Insured- Min: 21 years, Max: 50 years
ii) For Child- 21 years
Sum AssuredMin: Rs. 1 lakh (multiples of Rs. 1,000)
Max: Rs. 1 crore (subject to underwriting)
Policy Tenure (in years)21 minus child’s entry age
Premium Paying Term (in years)18 minus child’s entry age
Premium Paying FrequencySingle Premium/Yearly/Half-yearly/Quarterly/Monthly
Premium Amount
i) Single Pay: Rs. 66,000
ii) Minimum:
Yearly: Rs. 6,000
Half-yearly: Rs. 3,000
Quarterly: Rs. 1,500
Monthly: Rs. 500
iii) Maximum:
As per underwriting, on the basis of maximum BSA

SBI Life Smart Champ Insurance: Features

  • One-time or limited premium payment options are available under the plan.
  • The plan immediately pays the sum assured and waiver premiums to meet the financial challenges during any eventuality.
  • After the child turns 18 years, you will be liable to get smart benefits in terms of 4 equal instalments annually.
  • Cover for life and Total Permanent Disability out of an accident is provided under the plan for the entire policy tenure.
  • Without any burden of paying premiums in your absence, your child shall receive the insurance benefits as you anticipated.

SBI Life Smart Champ Insurance: Benefits

Death Benefit:

This benefit of the plan is payable in case of death or accidental total permanent disability. The death benefit equal to the higher sum assured amount in a lump sum or 105% of total premiums paid till death is paid for an insured event during the policy tenure only if the policy is in force.

Smart Benefits:

You can avail smart benefits to fulfil your child’s educational needs as described below in the following table (at the end of the policy year when your child completes 18, 19, 20 and 21 years of age):

Child’s Age (in years)Benefits
1825 % Basic Sum Assured + 25% Simple Reversionary Bonus
1925 % Basic Sum Assured + 25% Simple Reversionary Bonus
2025 % Basic Sum Assured + 25% Simple Reversionary Bonus
2125 % Basic Sum Assured + 25% Simple Reversionary Bonus + Terminal Bonus, if applicable

Discounts:

A discounted value of future due instalments inclusive of a terminal bonus, if any, can be availed as a lump sum at a discounted rate of 6.25% per annum.

Waiver of Due Premiums:

Offers financial security to your family during your absence by waiving off all the due future premiums for the policy. Accrued bonus will continue to add if applicable.

Instant Pay:

In an insured event, the policy guarantees to pay a lump sum amount, i.e. ‘Sum Assured on Insured Event’ immediately so as not to face any financial disputes.

SBI Life Smart Champ Insurance: Illustration

Details of the policy:

Name Mr. Vikram
Age of the Policyholder35 years
Age of the Child6 years
Sum AssuredRs. 5 lakhs
Premium Payment Term12 years
Premium Paying ModeAnnually
Policy Tenure15 years
Date of Commencement of Risks1st March 2020

The annualized premium for the above-mentioned policy = Rs. 41,410 + Taxes

After the child attains an age of 18 years, Mr. Vikram will get the following benefits:

Smart Benefit Payment Due DateAge of Child (in years)Smart Benefits (in Rs.)
@4 %@8 %
Guaranteed Smart Benefits (in Rs.)Non-guaranteed Simple vested bonus +Terminal bonus (if any) (in Rs.)Guaranteed Smart Benefits (in Rs.)Non-guaranteed Simple vested bonus +Terminal bonus (if any) (in Rs.)
1st March 2032181,25,00028,5001,25,00045,000
1st March 2033191,25,00028,5001,25,00045,000
1st March 2034201,25,00028,5001,25,00045,000
1st March 2035211,25,00045,0001,25,00072,000

**Note: The rates of returns per annum mentioned in the table are only illustrative scenarios including all applicable charges. Returns are dependent on a number of factors comprising future investment efficiency.

Additional Details

Policy Loans

The policy offers a loan facility to meet emergency financial requirements prior to the last 3 policy years. Loans can be taken only after the policy acquires surrender value and can be available for a maximum of 90% of the surrender value. The interests of the loan shall be declared by the company.

Rebates on Large Sum Assured

The policy offer rebates per Rs. 1,000 sum assured on opting for a larger cover as follows:

Basic Sum Assured (BSA)Rebate per Rs. 1,000/- Basic Sum Assured
LPPT PoliciesSP Policies
Rs. 1 Lakh < BSA < Rs. 2 LakhsNILNIL
Rs. 2 Lakhs = < BSA < Rs. 3 Lakhs3.006.50
Rs. 3 Lakhs = < BSA < Rs. 5 Lakhs4.509.50
> = Rs. 5 Lakhs5.5011.00

Grace Period

SBI Life Smart Champ Insurance provides a grace period of 30 days from the premium due date for yearly/half-yearly/quarterly premium frequency and 15 days for monthly premium frequency.

The policy will remain in force throughout the Grace Period and shall lapse if no premium is paid at the end of the Grace Period.

Renewal Option

A lapsed Life Smart Champ Insurance can be renewed within 5 consecutive years from the date of first unpaid premium provided the policyholder will pay all the overdue premiums subject to satisfactory insurability statements.

Free Look Period

15 days free look period is provided to the policyholder for policies purchased from any source except through distance marketing.

On the other hand, 30 days free look period is provided for electronic policies.

Tax Exemptions

Tax benefits are applicable to the policy as per the income tax laws in India under Section 80C, that are subject to change from time to time.

Exclusions

The policy shall not cover a few conditions and has some permanent exclusions in its clauses:

  • Any diseases or injuries arising out of a war, invasion, foreign enemies act, attacks, riots, etc.
  • Any pre-existing conditions.
  • Complications caused due to exposure to intoxicating substances such as alcohol, drugs, smoke, etc.
  • Any self-inflicted injury that leads to committing suicide.
  • If the suicide is done within 12 months from the date of commencement of risks, then the beneficiary will be liable to receive 80% of the premiums paid till the death of the policyholder.
  • Psychiatric disorders, nuclear contamination, hazardous sports, etc.
  • Any congenital disease before 18 years.
  • Injuries occur due to aviation, participation in any flying activity except travelling as a passenger.

SBI Life Smart Champ Insurance: FAQs

1. Does SBI Life Smart Champ Insurance plan provide cover to NRIs?

Yes, the plan provides cover to NRIs also.

2. Is paid-up value applicable in SBI Life Smart Champ Insurance plan?

Yes, in case of an unfortunate event, paid-up sum assured along with accrued vested bonuses and the terminal bonus is payable.

3. What are LPPT and SP policies?

‘LPPT’ stands for Limited Premium Payment Term policy and ‘SP’ stands for Single Premium policy.

4. When will I get the surrender value of my SBI Life Smart Champ Insurance policy?

On paying premiums for at least 2 consecutive policy years, the policy will acquire a surrender value in case of LPPT policy, whereas the same will acquire anytime throughout the policy tenure for SP policy.

5. Can I change the nominee in SBI Life Smart Champ Insurance policy?

Yes, you can change the nominee anytime before the maturity of the policy.

6. What if the nominee child dies before 18 years?

On the death of the nominee child before 18 years, no contingent benefits will be paid to the policyholder as the policy is liable for the benefit of the nominee child and not for the parent(s).

7. Does SBI Life Smart Champ Insurance policy offer any rider options?

No, the policy does not offer any rider options.

Last updated on 12-03-2020