SBI Life Smart Scholar is a non-participating child unit-linked insurance plan that comes with the death benefit, maturity benefit as well as tax benefit. The objective of the Smart Scholar insurance plan is to offer myriad coverages to secure the future of the insured child even in the absence of its parents.
The SBI Smart Scholar plan is a unique child plan that combines the benefit of insurance with investment. The plan guarantees the lump sum amount at the maturity of the policy and a waiver on the premium in case of an eventuality. The insured also has an option to choose from among nine best fund options which include:
The Smart Scholar Policy offers loyalty additions to the fund, increasing the fund value and thus, the payout at maturity. These loyalty additions are paid even after the insured is dead.
The table below elaborates on the various specifications of the product.
|Eligibility (Age)||Child- 0 Years |
Parent- 18 Years
|Child- 17 Years |
Parent- 57 Years
|Premium Payment Tenure||Single Pay or 5 to 25 Years|
|Maturity Age||Child- 18 Years |
|Child- 25 Years |
Parent- 65 Years
|Tenure of the Policy||8 Years||25 Years|
|Frequency of Premium||Monthly, Quarterly, Half-Yearly or Yearly|
The minimum sum assured for the Smart Scholar Plan for Regular Pay (above the age of 25 years) is the higher of:
The minimum sum assured for individuals for Regular Pay (below the age of 45 years) shall be higher of:
The maximum regular pay sum assured shall be 20x annual premium.
|Sum Assured for Regular Pay|
|Above the age of 45 years: |
Higher of – 10x annual premium or 0.5x term annual premium
Below the age of 45 years:
Higher of – 7x annual premium or 0.25x Term Annual Premium
|20x annual premium|
The minimum Single Pay sum assured shall be 1.25x the Single premium. The maximum Single Pay sum assured shall be 35x single premium for ages above 45 years and 1.25x single premium for ages below 45 years.
|Sum Assured for Single Pay|
|1.25x Single Premium||Above the age of 45 years: |
35x Single Premium
Below the age of 45 years:
1.25x Single Premium
The points listed below are some of the most significant details you need to know about the policy.
In addition to the in-built features of the policy, various features come as an add-on. For instance, the policy is inclusive of a premium waiver rider that pays the premium in the event of the death of the insured.
The policy also includes a clause that guarantees a lump sum assured in the event of permanent and total disability in the event of an accident.
The policy comes with the following inclusions:
The policy comes with the following exclusions:
Mr. Sharma (32) invests in the SBI Life Smart Scholar Plan for his child (6). He invests in a regular plan with a policy term of 20 years, the frequency of payment being yearly. The annual premium of INR 2, 00,000 is paid all along with the policy term (Basic Sum Assured- INR 20, 00,000). Mr. Sharma decides to invest in the Top 300 Fund.
Calculating the fund value at Maturity at an assumed interest rate of 4%, we get INR 46, 87,282 the time of maturity.
Assuming the rate of payout is 8%, the fund value at maturity stands at INR 74, 15,458.
In the event of the unfortunate death of Mr. Sharma in the 7th Policy Year, all future premiums will be waived off.
Recapitulating the benefits and features of the SBI Life Smart Scholar Plan, we see that it offers premium options lower than most other life insurance policies in the market. The plan offers attractive discounts, loyalty additions and premium waivers which gives it an extra edge over other ULIP Child Plans. The company also boasts of having a good claim to settlement ratio which makes it a reliable option for first-time investors.
The beneficiary is eligible to receive 105% of the total premium paid or the sum assured, whichever is higher.
Yes, you are eligible to get tax benefit on the claims (as per Section 10(10D)) of the Income Tax Act.
No, there is no loan facility available for the SBI Life Scholar Plan.
Last updated on 05-11-2020