SBI Life Smart Bachat
SBI Life Smart Wealth Builder
  • Maturity Benefit
  • Free Look Period
  • Tax Benefits Under 80C
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SBI Life Smart Bachat

SBI Life Smart Bachat is an individual, non-linked and participating life insurance savings product. The plan comes out with the Limited Premium Paying Term (LPPT) option that is designed to keep the obligation of paying the premium over a long tenure at bay.

Options Under SBI Life Smart Bachat Plan

The plan offers two options to choose from. Once the choice is made, it can’t be changed.

Option A: Endowment option

Under the same, the insured will receive a simple reversionary bonus along with a terminal bonus on maturity.

The simple reversionary bonus is offered throughout the policy tenure which is great enough to build a corpus.

Option B: Endowment option with in-built AD & TPD benefit

Along with the benefits that you get under Option A, the plan will offer AD & TPD benefit in a lump sum. Moreover, all future premiums would be waived off and the base policy will remain active till surrender, death or maturity.

SBI Life Smart Bachat: Eligibility

Entry age6 years to 50 years
Maturity age65 years
Minimum Sum assuredRs.100000
Premium paying term6, 7, 10, 15
Policy termDepends upon on the premium payment term
Premium frequencyYearly/half-yearly/quarterly/monthly

Key Features

Financial Protection: The plan comes out with the required financial protection for you and your family through two different plan options.

Premium Waiver: The plan offers the option of in-built premium waiver benefit.

Maturity Benefit (for both options): On survival till the maturity date, the insured will get the basic sum assured + vested simple reversionary bonuses + terminal bonus. However, in case of a paid-up policy, the insured will receive paid-up sum insured instead of the basic one.

Death Benefit (for both options): In case of the death of the insured during the policy tenure, the beneficiary will get the higher of sum assured + terminal bonus + vested simple reversionary bonus or 105% of the total premium received.

Free Look Period: If you are not happy with any of the features and don't want to continue with your plan, then you can cancel the plan within 15 days of receiving the documents. This period is known as free look period and under the same, you will get a refund on cancelling the policy.

Grace Period: Under yearly, half-yearly and quarterly premium payment mode, you will get a grace period of 30 days from the due date of the premium in case you miss it. In the case of monthly premium payment mode, it is for 15 days.

Loan: You are allowed to avail a loan against SBI Life Smart Bachat once it acquires a surrender value. However, it will be limited to 90% of the surrender value.

Surrender Value: In case you choose to surrender the plan in the initial 3 years of the plan, you will not be able to get anything back. In case you opt for surrendering after paying 3 years premiums, the policy will get a surrender value.

Revival: The plan allows to revive the lapsed policy within 2 years of the plan from the first unpaid premium.

Paid-up Value: The plan will acquire a paid-up value only when the insured has paid the premiums for two full years. It might vary from premium payment terms.

Assignment: The insured can assign the plan to someone else by submitting a written request for the same as per the Insurance Act, 1938.

Nomination: Nomination facility is also there under Insurance Act, 1938.

Multiple Policy Renewal Payment Options: The plan allows to make premium payments easily. It comes out with multiple channels and even allows to choose the payment method as per your convenience.

Rebates: The plan will provide rebates as discounts on the basic premium. It is applicable only for high sum assured.

Who Should Buy SBI Life’s Smart Bachat plan?

SBI Life’s Smart Bachat plan is one of the best alternatives when it comes to conservative long-term investment plans to have lifetime protection along with wealth creation option. It is a beneficial choice for those who are looking for long term benefits with limited years of investment. Being the traditional endowment plan, it allows investing in any market condition.

Discontinuance of Premium in SBI Life Smart Bachat plan

SBI Life Smart Bachat Plan comes out with the surrender/paid-up value benefit. Under the same, the plan acquires the paid-up status. For the same, the insured needs to pay the premium for at least 2 years (premium payment term less than 10 years) and 3 years (premium payment term 10 years or more). In case you discontinue the premium payment after the plan attains the paid-up value, the policy will not get terminated. However, in such a scenario, the sum assured benefit will get reduced to paid-up sum assured. It will be paid out on death or at the time of maturity along with vested bonuses.

Documents Required For Buying SBI Life Smart Bachat plan

  • PAN Card.
  • Income proof which includes salary certificate/ income tax return.
  • Identity card such as Aadhaar card/passport/pan card/ driving license or any other document issued by the government.
  • Proof of residence which includes municipal tax receipts/passport//utility bills/bank statement etc.

Premium Illustration

Below are a few premium charges for a 30-year-old customer looking for the cover of INR. 5,00,000 for 20 years.

Plan option Premium payment term (in years) Policy term (in years) Sum assured (in INR.) Yearly premium (in INR.)
Option A – Endowment option5205,00,00068,285
Option B – Endowment with AD & TPD benefit5205,00,000 + 5,00,000 (AD & TPD benefit)69,285

What The SBI Life Smart Bachat Plan Doesn’t Cover?

In the case where the life insured commits suicide (regardless of mind state) within a year from the policy commencement date or revival/reinstatement date, the insurance company will not pay any death benefit.

The nominee as stated in the document will get an amount equal to 80% of paid premium in case the insured commits suicide within 1 year of commencement of risk coverage date. After the benefits are paid, the plan will get terminated.

Exclusions Under AD & TPD Benefit

Apart from basic exclusions, AD & TPD benefit has its own list. Let’s check them below.

  • Injury because of infection except for the one that takes place due to a visible wound sustained due to an accident.
  • Any disability or death that occurs under the consumption or influence of intoxicants, drugs, except those prescribed by a doctor.
  • Any self-inflicted injury. It includes those injuries as well that occurs during an attempt to suicide.
  • Disability or death because of participation in criminal or any unlawful acts.
  • Disability or death because of civil commotion, war, hostilities, invasion, rebellion, etc.
  • Disability or death because of exposure to hazardous nuclear fuel materials, nuclear contamination – radioactive, explosive or accident because of the same.
  • Disability or death occurs because of insured activities associated with any air-borne activity.


The different premium frequency loading charges under SBI Life Smart Bachat Plan are:-

  • Half-yearly: 51% of the annual premium
  • Quarterly: 26% of the annual premium
  • Monthly: 8.5% of the annual premium

Yes, SBI Life Smart Bachat Plan offers a discount to the insured on opting a high sum assured option. Even rebates are also there under the plan.

No, the plan does not come out with any rider, so you don't have the choice for the same.

The minimum premium that you have to pay to get insured under this SBI Life Smart Bachat Plan is Rs. 450 monthly. However, it depends on the sum assured.

Assumed rates of returns under SBI Life Smart Bachat Plan are @4% and @8% p.a. These are not guaranteed returns. There are no higher or lower limits of returns under this plan. Returns are dependent on multiple factors that include future investment performance.

There is no limit when it comes to the maximum limit for the basic sum assured.

It is basically a one time bonus that the insured will get from the insurance company for running the policy until its original and decided term.

Last updated on 13-11-2020