SBI Life Smart Wealth Builder

SBI Life Smart Wealth Builder is an individual, unit-linked, and non-participating life insurance plan. It comes out with a dual benefit of insurance and investment. The plan offers a guaranteed bonus at different stages during the policy tenure. It is specifically designed for achieving life goals such as higher education for your children, marriage, buying a house, travel, etc.

How Does This Plan Work?

Let's understand this with the help of an example.

Mr. Shaam (age 35 years) is living happily with his family which includes his wife Seema and daughter Riya. He was looking for options through which he can build a corpus amount for Riya's education, her marriage, etc. He also wants to secure his family's future in case of any mishappenings. So, he decided to invest in SBI Life - Smart Wealth Builder with a policy tenure of 30 years and an annual premium payment of Rs 50,000 with Rs 5,00,000 as the sum assured.

• Case 1: Maturity Benefit: In case of insured survival till the end of the policy tenure or maturity, the fund value will be paid in a lump sum. The maturity benefit can be taken in installments through the settlement option. There will be guaranteed additions at specific durations within the policy tenure that enhance the fund value.
• Case 2: Death Benefit: In case of demise of the insured during the policy tenure, the higher of sum assured or fund value or 105% of the total premiums is payable. This plan provides financial security to the family.

Key Features of SBI Life Smart Wealth Builder

The plan offers a myriad of features to cater to multiple needs of the insured.

• The plan offers guaranteed additions on the basis of the Policy term. The payable of total guaranteed additions can go up to 125% of one regular premium.
• It protects by offering life insurance coverage throughout the policy tenure.
• In the case of Regular and Limited Premium Payment Term (LPPT) plans, no administration fees for the first 5 years are applicable.
• The plans allow no premium allocation charge from the 11th year of policy onwards
• Flexibility of choosing investment opportunities using 11 fund options.
• The mortality charge will be deducted from the fund value on the first working day of every month that will be determined based on your age and associated risk.

Benefits of Smart Wealth Builder

1 Maturity Benefit

The plan offers fund value as a maturity benefit on reaching a vesting date. The fund value will be the total value of units held across all associated unit-linked funds.

2 Death Benefit

In case of death of the insured, the beneficiary will receive the fund value or sum assured as the death benefit. It will be around 105% of total basic premiums paid till the date of death.

3 Flexibility

The plan offers the opportunity under which the insured can increase or decrease the sum assured from the 6th policy year and onwards. There will be no premium allocation charge from the 11th policy year, no policy administration fees for the initial 5 years under regular & limited premium policies and it allows partial withdrawals from the 6th policy year onwards.

4 Free Look Period

The plan comes out with a free look period of 15 days. Under the same, if you wish to cancel or you are dissatisfied with the terms and conditions of the plan, the company can easily do it and get a refund.

5 Switching

Insured gets two free switches during the policy tenure.

6 Partial Withdrawal:

1 free partial withdrawal is allowed during the same policy year.

Fund Options

Equity Fund

Fund offers high equity exposure by targeting higher returns in the long term.

Top 300 Fund

Fund provides a capital appreciation for the long term by investing in 300 company's stocks on NSE i.e., National Stock Exchange.

Equity Optimiser Fund

This fund provides equity exposure by targeting higher returns through capital gains of the long term.

Growth Fund

Long-term capital growth using investment majorly in equity or its related instruments. A small part is invested in debt or money markets.

Balanced Fund

Income accumulation is provided through equities investment primarily through debt instruments. The income accumulation is done through fixed securities of income.

Bond Fund

In this, the safe and less volatile investment option is provided through debt instruments and income accumulation using fixed income securities.

Money Market Fund

It deploys the fund in liquid and safe instruments on a temporary basis to avoid market fluctuations.

Bond Optimiser Fund

Fund helps earn returns higher than a pure fixed income.

Pure Fund

Fund aims to provide high equity targeting higher returns for the long term. The fund invests in equities other than banks, financial institutions, entertainment, hotels, gambling, contests, leather, animal products and breweries, distilleries.

Midcap Fund

It provides high equity exposure targeting higher returns for the long term by investing majorly in Midcap companies.

Corporate Bond Fund

Provides steady income for the insured person by investing in debt instruments and standardized returns.

Eligibility

Sample Premium Rates

This graph illustrates the maturity benefit @4% and @8% by a healthy male of 35 and 40 years for a premium of Rs. 71,000, Sum assured 7,10,000, and policy term of 15 years. Assuming Equity Fund to be 100% for a regular premium.

Maturity Benefit of SBI Life Smart Wealth Builder

Exclusions

If the life assured commits suicide within 1 year from the commencement date or revival date of the policy, then the policy shall be null and void. Fund value as per the date of death will be paid to the beneficiary.