SBI Life Smart Wealth Builder
SBI Life Smart Wealth Builder is a Unit-linked Investment Plan which also provides the benefits of a life insurance plan. The plan offers a choice of 11 different fund options which can be switched by you up to 2 times free of charge during a policy year. The plan features no premium allocation charges from the 11th policy year and no policy administration charges for the first 5 policy years.
This investment plan rewards you for staying invested in the policy for a long period of time by providing guaranteed additions. A maximum of 2 partial withdrawals are allowed under the plan after the completion of the lock-in period of 5 years. Out of these 2 partial withdrawals, 1 is allowed free of any extra cost. You can also choose to redirect your premium from the 2nd policy year without incurring any charges.
Best Features of SBI Life Smart Wealth Builder
Following are the best features of SBI Life Smart Wealth Builder:
- Fund Options- The plan offers 11 fund options to offer a wide array of investment avenues to you.
- Guaranteed Additions- The plan provides guaranteed additions starting from the 10th policy year and thereafter every 5th policy year.
- Low Charges- The plan levies no policy administration charges during the first 5 years of the policy. The premium allocation charges also get exempted from the 11th policy year.
- Partial Withdrawals - After 5 policy years, you can make partial withdrawals up to 2 times during a policy year, subject to a maximum of 10 times during the entire policy term. Only 1 partial withdrawal during a policy year is allowed free of any extra cost.
- Fund Switching- The plan allows you to switch the fund options up to 2 times during a policy year without any charge. Further switches within the same policy year are charged with INR 100 per switch.
- Premium Redirection Option- Under this option, the premium can be redirected without any charge after 2 policy years.
Benefits of SBI Life Smart Wealth Builder
SBI Life Smart Wealth Builder offers the following benefits to its investors -
- Death Benefit
In case of unfortunate death of the life assured, the highest of the following is paid to the nominee as the death benefit -
- Fund value is available on the date of death
- Basic sum assured less partial withdrawals in the immediately preceding 2 years
- 105% of all the premiums paid till the date of death less partial withdrawals in the immediately preceding 2 years
The nominee can choose to receive the above benefit either as a lump sum or over a period of 2 or 5 years in the form of yearly, half-yearly, quarterly, or monthly installments.
- Maturity Benefit
In case of survival of the life assured till the date of plan maturity, the fund value is paid in lump sum as the maturity benefit.
- Guaranteed Additions
The plan provides Guaranteed Additions from the 10th policy year as a reward for your long-term commitment to the plan. The additions are equivalent to a percentage of the annual premiums in the case of Regular and Limited Premium paying policies and to a percentage of the fixed Single Premium in the case of Single Premium paying policies.
| Policy Year End | Regular Premium Policy | Limited Premium Paying Term Policies | Single Premium Policy | |||
| 7 PPT | 10 PPT | 12 PPT | 15 PPT | |||
| 10 | 5% | 5% | 5% | 5% | 5% | 5% |
| 15 | 15% | 10% | 10% | 10% | 10% | 5% |
| 20 | 25% | 10% | 15% | 15% | 20% | 5% |
| 25 | 35% | 10% | 20% | 25% | 30% | 7% |
| 30 | 45% | 15% | 25% | 30% | 35% | 8% |
SBI Life Smart Wealth Builder Eligibility
The plan comes with the following eligibility conditions -
| Eligibility Criteria For SBI Life Smart Wealth Builder | |
| Minimum Age at Entry | 7 years |
| Maximum Age at Entry | 55 years |
| Minimum Age at Maturity | 18 years |
| Maximum Age at Maturity | 70 years |
| Policy Term |
|
| Premium Payment Term (PPT) |
For policy term of 12-14 years- 7 years For policy term of 15-19 years- 7/10/12 years For policy term of 20-30 years- 7/10/12/15 years |
| Premium Payment Frequency | Single or Annual |
| Minimum Premium Amount |
|
| Maximum Premium Amount | INR 3 Lakh, subject to underwriting |
| Basic Sum Assured |
|
SBI Life Smart Wealth Builder Fund Options
SBI Life Smart Wealth Builder provides the following 11 fund options to invest your hard-earned money:
| Fund Name | Asset Class | Risk Involved | ||
| Equity and Equity Related Securities | Debt Instruments | Money Market | ||
Fund Composition | ||||
| Equity Fund | 80%-100% | 0%-20% | 0%-20% | High Risk |
| Top 300 Fund | 60%-100% | - | 0%-40% | High Risk |
| Equity Optimiser Fund | 60%-100% | 0%-40% | 0%-40% | High Risk |
| Growth Fund | 40%-90% | 10%-60% | 0%-40% | Medium to High Risk |
| Balanced Fund | 40%-60% | 20%-60% | 0%-40% | Medium Risk |
| Bond Fund | - | 60%-100% | 0%-40% | Low to Medium Risk |
| Money Market Fund | - | 0%-20% | 80%-100% | Low Risk |
| Bond Optimiser Fund | 0%-25% | 75%-100% | 0%-25% | Low to Medium Risk |
| Pure Fund | 80%-100% | - | 0%-20% | High Risk |
| Midcap Fund | 80%-100% | 0%-20% | 0%-20% | High Risk |
| Corporate Bond Fund | 70%-100% | 0%-30% | 0%-30% | Low to Medium Risk |
SBI Life Smart Wealth Builder Review
SBI Life Smart Wealth Builder is a cost-effective investment plan accompanying the benefits of a life insurance plan. The plan provides enough flexibility to its investors by offering 11 distinctive fund options which can be switched for a maximum of 2 times without any charge during a policy year. Also, the charges levied under this plan are comparatively lower than its alternatives.
Moreover, the plan rewards its investors for staying invested in it by providing guaranteed additions. The plan also helps you maintain financial liquidity through its feature for partial withdrawals. SBI Life Smart Wealth Builder is an ideal ULIP for people looking for a plan with minimal charges and flexible premium payment term along with varying fund options.
SBI Life Smart Wealth Builder FAQs
1. What is the grace period under the plan?
The plan offers you a grace period of 30 days to pay all the due premiums from the date of first unpaid premium.
2. How long will it take to settle the death benefit?
The settlement period of death benefit can range from 2 to 5 years in the form of yearly, half-yearly, quarterly, or monthly instalments.
3. What is the minimum amount required to make a fund switch?
A minimum amount of INR 5,000 is required for changing the fund option.
4. When can I start doing premium redirection?
Under SBI Life Smart Wealth Builder, premium redirection is allowed from 2nd policy year without any extra cost.
5. What is the lock-in period under the plan?
The lock-in period under the plan is 5 years starting from the commencement of the policy.