SBI Life Smart Scholar Insurance Scheme : State Bank of India provides insurance plans to the citizens including Life Insurance. If you are also looking for a Life Insurance Scheme from a trustable company then you can look out to the State Bank of India. State Bank of India is providing the SBI Life Smart Scholar Insurance Scheme.
SBI Life Smart Scholar Insurance Scheme is a unit-linked insurance plan (ULIP) that offers life insurance coverage along with the opportunity to save for your child’s future. It is a non-participating plan, which means that the policyholder does not share in the profits of the insurance company. However, it offers a number of features that make it a good option for parents who are looking to secure their child’s future.
Read this article to get the information about this scheme and after that, you can apply according to your eligibility by checking SBI Life Smart Scholar Insurance Scheme features, benefits, insurance amount, maturity period etc.
Features of SBI Life Smart Scholar Insurance Scheme
- Life insurance coverage : The plan provides life insurance coverage of up to 10 times the annualized premium throughout the policy term. This means that if the policyholder dies during the policy term, the beneficiary will receive a lump sum benefit equal to the sum assured.
- Grace period : Every method of premium payment, except the monthly mode, which allows for a 15-day grace period, allows for a 30-day grace period.
- Life Benefit : If the life assured is lost, a lump sum payout equal to the greater of the sum assured or 105% of the premiums paid up till death is given. No money is assured in the event of a child’s death. The policy will be terminated and all anticipated benefits, except the fund value, will be paid if the child and the life assured pass away during the policy period.
- Maturity Benefit : The beneficiary would receive the Fund Value that was available on the maturity date upon maturity. If the beneficiary so chooses, they may also use the Settlement Option to receive the Fund Value over the course of five years following the date of maturity. If the policyholder lives to maturity or dies within the plan’s term, the child would be the beneficiary. Otherwise, the policy holder would be the plan’s beneficiary.
- Policy termination or surrender benefit : After five years has passed, the policyholder may cancel it. When a policy is relinquished before the five-year mark, the fund value less the cessation fee is credited to the Discontinued Policy Fund, where it will grow at a minimum rate of 4% annually.
- The fund value in the Discontinuous Policy fund as of that date will be paid to the policyholder when five years have passed. The entire Fund value on the date of surrender is paid without any charges if the insurance is surrendered after 5 complete policy years.
- Free look period : You have the right to cancel the policy within 15 days of receiving the policy paperwork if you are unhappy with the terms and conditions, provided there has not been a claim.
- Settlement Options : Within five years of maturity, maturity proceedings will be paid in regular instalments. The fund value is paid as a lump sum to the legal heir of the life assured in the case of the death of the child or life assured before the conclusion of the settlement period.
- Tax Benefits : There are tax incentives available under section 80C and 10D. The tax benefit will be 10% of the total assured if the premium exceeds 10% of that sum. owners of policies should speak with their advisors
- Wealth accumulation : The plan allows you to invest your premiums in a variety of investment funds to grow your wealth over the long term. The accumulated fund value can be used to meet your child’s financial needs for education, marriage, or any other purpose.
- Flexibility : You can choose your investment funds and premium payment terms to suit your needs. You can also make partial withdrawals from the policy after the 6th policy year to meet any unplanned expenses.
- Riders : A number of riders are available to enhance your coverage, such as accidental death benefit riders, critical illness riders, and waiver of premium riders.
Eligibility Criteria for SBI Life Best Child ULIP Plan
- This scheme is only for those parents who have a child whose age is between 0 to 18 years.
- The minimum age of the child should be Zero years while Life assured of the parents should be more than 18.
- The maximum age of the children should be 17 and the 65 age of life assured should be for parents.
- The period of maturity of the scheme should between completion of 18 years to 25 years of the child.
- If you apply for the five to seven years of this scheme then you have to pay 4500 per month.
- If you are playing yearly then you have to pay 50000 per year or if you want you can pay 75000 at one time.
- The basic assurance will calculated by following the formula of multiplying 1.25 by a Single premium.
Documents required for SBI Life Best Child ULIP Scheme
- KYC of both parent & child.
- Address proof
- Income statement.
- Age proof of both parent and chils.
- Application form.
How to apply online for SBI Life Smart Scholar Insurance Scheme ?
If you are interested in the SBI Life Smart Scholar Insurance Scheme then you can follow this procedure to apply online :-
- First of all, visit the official website of SBI Life.
- You can click on this link to visit direct on the website : https://www.sbilife.co.in/
- Now you have to click on the link of the product and select the individual insurance plan on the official website.
- After that, you can see all the individual insurance plans of the State Bank of India where you have to select child plans in the filter section.
- Now you can see the link to the SBI Life Smart Scholar Insurance Scheme where you have to click on the link to learn more.
- After that, you will get information about the SBI Life Smart Scholar Life Insurance Scheme where you can give a missed call on the number which will available on this website
After that employees will contact to you and discuss with you about this scheme and you can apply by visiting to the SBI bank in this scheme.
Exclusions Under SBI Life Smart Scholar Insurance Plan
Suicide Exclusion :-
The nominee or beneficiary of the policyholder shall be entitled to the fund value, as available on the date of intimation of death, if the Life Assured passes away by suicide within 12 months of the date of commencement of the policy or the date of revival the policies, as applicable.
Additionally, any costs other than FMC collected after the date of death must added back to the fund value that was available on the day the death was informed.
Exclusion for Accident Benefit : –
Death or total and permanent disability resulting from, caused by, occurring during, or as a consequence of the incidents listed below are not covered :
Infection : Any infection that results in death or disability, excluding infections brought on by unintentional external visible lesions.
Drug Abuse : Using drugs or alcohol while intoxicated or under the influence of a solvent, unless guided by a licensed medical professional.
Self-inflicted Injury : Intentional self-inflicted harm, which includes wounds suffered during a suicide attempt.
Criminal Acts: Life-long participation in unlawful or criminal acts to do so.
War and Civil Commotion : A civil commotion is a riot, invasion, hostilities, whether or not a war is proclaimed, civil war, revolt, or taking part in one.
Nuclear Contamination : Property contaminated by nuclear fuel materials, accidents involving such materials, or the radioactive, explosive, or dangerous characteristics of such materials.
Aviation : Involvement in any flying activity other than as a passenger in an aircraft with a commercial pilot’s licence, is guaranteed.
Hazardous Sports and Pastimes : Participating in or practicing for any hazardous pastime, pursuit, or race that has not been explicitly declared and accepted by the Company.
How does the SBI Life Smart Scholar scheme work?
The workings of the scheme is as follows :
- The policy holder buys the plan and adds a beneficiary to the policy.
- The policy holder makes regular premium payments which are then invested in market-link funds.
- The beneficiary of the policy (children) will eligible to receive the fund value upon policy maturity or death of the policyholder.
FAQ’s : SBI Life Best Child ULIP Plan
What is SBI Life Smart Scholar Insurance Scheme ?
SBI Life Smart Scholar Insurance Scheme is a unit-linked insurance plan (ULIP) that offers life insurance coverage along with the opportunity to save for your child’s future. It is a non-participating plan, which means that the policyholder does not share in the profits of the insurance company.
Does SBI Life Smart Scholarship offer the Revival Option ?
Within two years of the date of the initial unpaid premium, revival is allowed. To restore his coverage, the policyholder would have to pay the unpaid premium and any interest the insurer assessed.
How to take money out of the SBI Smart Scholar plan ?
According to the terms and conditions of the company, if you choose a policy period of 10 years or less, you can withdraw money only twice per policy year and five times overall. However, if the policy period is more than ten years, you may only withdraw money ten times during the entire period
How many times does an applicant withdraw money from SBI smart scholar plan ?
According to terms & conditions, you are allowed to take money only two times during a policy year, five times during whole policy tenure if you have chosen a policy term of 10 years or below. If it is more than 10 years, then you can withdraw funds 10 times during the whole tenure.