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SBI Life – Smart Scholar
The SBI Life Smart Scholar is a non-participating Unit-Linked Insurance Plan which is especially crafted to help you secure your child’s future financially. The plan offers a choice of 9 fund options featuring varied proportions of equity and money-market instruments to match your risk profile and investment preference. However, being a ULIP, it comes with a lock-in period of first 5 years.
The plan takes care of your flexibility requirements by allowing fund switches, partial withdrawals, and premium redirection. The plan also comes with an in-built waiver of premium benefit which waives off all the future premiums in case of an unfortunate death of the life assured and let’s the plan continue till maturity.
Best Features of SBI Life Smart Scholar
Following are some of the best features that make this child plan different from its counterparts -
- Fund Options- The plan comes with as many as 9 fund options featuring equity-oriented, debt-oriented and balanced funds.
- Accident Benefit- The plan provides a lump sum benefit in case of an accidental death and an annual benefit payable in 10 equal instalments in case of accidental total permanent disability of the life assured. The accident benefit is subject to a maximum of INR 50 Lakh.
- Premium Payor Waiver Benefit- In case of an unfortunate death of the life assured during the policy term, the SBI Life Insurance pays all the future premiums on behalf of the life assured and provides the child with fund value at maturity.
- Loyalty Additions- The plan makes loyalty additions equivalent to 1% of the average fund value over the 1st day of the last 24 policy months at specific durations to boost your savings.
- Fund Switches- You can switch funds up to 2 times free of charge in a policy year, subject to a minimum switch amount of INR 5,000.
- Partial Withdrawals- After the completion of the lock-in period of the first 5 years, you can make 1 free partial withdrawal every year, subject to a maximum of 15% of the fund value.
Benefits of SBI Life Smart Scholar Plan
The SBI Life Smart Scholar plan offers the following benefits to its investors -
1. Death Benefit
In case of an unfortunate death of the life assured, the higher of the following is paid as the death benefit to the nominee -
- Basic sum assured
- 105% of all the premiums paid till the date of death
In addition, to the above, the SBI Life Insurance waives off all future premiums and pays the accumulated fund value on maturity.
In case of the death of the life assured in an accident, an accident benefit sum assured is also paid to the nominee.
2. Maturity Benefit
In case of survival of the life assured till the maturity, the fund value is paid in lump sum as the maturity benefit.
SBI Life Smart Scholar Plan Fund Options
The SBI Life Smart Scholar Plan features the following 9 fund options to help you invest as per your investment style and risk appetite -
Fund Name |
|
Risk Profile | ||
|---|---|---|---|---|
Equity and Equity Related Instruments | Debt Instruments | Money Market Instruments | ||
| Equity Fund | 80%-100% | 0%-20% | 0%-20% | High |
| Top 300 Fund | 60%-100% | - | 0%-40% | High |
| Equity Optimizer Fund | 60%-100% | 0%-40% | 0%-40% | High |
| Growth Fund | 40%-90% | 10%-60% | 0%-40% | Medium to High |
| Balanced Fund | 40%-60% | 20%-60% | 0%-40% | Medium |
| Bond Fund | - | 60%-100% | 0%-40% | Low to Medium |
| Money Market Fund | - | 0%-20% | 80%-100% | Low |
| Bond Optimizer Fund | 0%-25% | 75%-100% | 0%-25% | Low to Medium |
| Pure Fund | 80%-100% | - | 0%20% | High |
SBI Life Smart Scholar Plan Eligibility
The SBI Life Smart Scholar plan comes with the following eligibility conditions -
Eligibility Criteria For Smart Scholar Plan | |
|---|---|
| Minimum Age At Entry | Parent (Life Assured) - 18 years Child - 0 years |
| Maximum Age At Entry | Parent (Life Assured) - 57 years Child - 17 years |
| Minimum Age At Maturity | Child - 18 years |
| Maximum Age At Maturity | Parent (Life Assured) - 65 years Child - 25 years |
| Policy Term | 8 years - 25 years |
| Premium Payment Term (PPT) | Single Premium / 5 years - 25 years |
| Minimum Premium Amount | PPT Payment Frequency Amount Single Single INR 75,000
8 years or more Yearly INR 24,000 Half-yearly INR 16,000 Quarterly INR 10,000 Monthly INR 4,000
5-7 years Yearly INR 50,000 Half-yearly INR 25,000 Quarterly INR 12,500 Monthly INR 4,500 |
| Maximum Premium Amount | No limit, subject to underwriting |
| Basic Sum Assured | Limited premium up to policy term - 10 X Annualised premium Single premium - 1.25 X Single premium |
SBI Life Smart Scholar Plan Review
SBI Life Smart Scholar is a child savings oriented Unit-Linked Insurance Plan (ULIP) which helps you plan for the future expenses of your child while appreciating your wealth by investing in market-linked instruments. The plan comes with an in-built accidental death benefit and premium waiver benefit to help maintain the financial standing of the family in case of an untimely demise of the life assured in an accident.
For wealth maximisation purpose, the plan offers a wide array of 9 fund options which can be switched up to 2 times for free in a policy year. The plan also helps you meet financial exigencies by allowing for policy loan and partial withdrawals. It is an optimal investment solution for individuals looking for a market-linked child savings plan which offers substantial life coverage.
SBI Life Smart Scholar FAQs
1. Can unused fund switches be carried forward to the next policy year?
No, the unused fund switches cannot be carried forward to the next policy year.
2. From when can I use the feature of premium redirection?
The premium redirection feature is available from the 2nd policy year and 1 free premium redirection request is allowed each year without any extra charge.
3. What is the minimum amount requirement for making a partial withdrawal?
You can make partial withdrawals after the completion of the lock-in period of the first 5 years, subject to a minimum amount of INR 5,000.