A well-crafted guaranteed income plan, the SBI life Smart Guaranteed savings plan is an individual savings policy in the traditional non-participating category. Let’s know the details about the plan.
This SBI safe guaranteed return plan offers guaranteed savings by means of loyalty additions to enhance policy corpus. In addition to the guaranteed returns, this dual benefit policy also offers insurance coverage to the policyholder. Let us take a look at the features of this dual benefit policy.
Key Features of SBI life Smart Guaranteed savings plan
- This is a non-participating plan with 7 years of limited premium payment term
- Depending on the premium instalment chosen, the plan allows guaranteed additions from the end of the first policy year
- The amount of the guaranteed additions paid to the policyholder is calculated on the basis of cumulative premiums that are paid by the investor
Benefits of SBI life Smart Guaranteed savings plan
- The key benefit of the plan is that at the time of maturity, the policyholder is paid the basic sum assured as well as the collective guaranteed additions promised under the plan
- As per the premium range and the cumulative premiums paid by the policyholder, the guaranteed additions under the plan are accumulated at a rate of interest that is within 5.5% or 6%
- In case of sudden demise of the policyholder within the policy term, the family of the insured is paid higher of the basic sum assured including guaranteed additions till the death of the insured or 105% of paid premiums
- Further, income tax benefits on the paid premium can also be availed by the insured under section 80C and Section 10(10D) of the Income Tax Act
Product Specifications of SBI life Insurance Guaranteed Return plan
|
Specification |
Minimum |
Maximum |
|
Entry Age |
18 years |
50 years |
|
Maturity Age |
– |
65 |
|
Policy Term |
15 years |
15 years |
|
Premium Paying Term |
7 years |
7 years |
| Premium Paying Frequency |
Annual |
Annual |
|
Yearly Premium |
15,000 |
75,000 |
|
Sum Assured |
Depends on the selected premium |
Depends on the selected premium |
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Premium details of SBI life Smart Guaranteed savings plan
Here’s the details of premium to be paid annually under the guaranteed return plan SBI:
| Age |
35 years |
45 years |
| Sum assured |
3,53,500 |
3,41,500 |
| Premium |
50,000 |
50,000 |
| Guaranteed additions |
2,52,000 |
2,52,000 |
| Guaranteed income at maturity |
6,05,500 |
5,93,500 |
Policy Details of SBI life Smart Guaranteed savings plan
Here are some key details of SBI guaranteed return insurance plan:
1. Surrender Benefit under the policy :
The SBI life smart guaranteed return plan allows the policyholder to surrender the plan and to receive the surrender value. The surrender value under the plan is calculated as the higher amount of either the Special Surrender Value (SSV) or the Guaranteed Surrender Value (GSV).
So, what is Guaranteed Surrender Value?
GSV = the basic premiums paid by the policyholder including the GSV of Guaranteed Additions is the GSV Factor *
SSV = the paid-up value on maturity is the SSV Factor *
2. Free look period:
Like in other policies, the SBI life Smart Guaranteed savings plan also allows the policyholder the option to cancel the policy in case the insured is not happy with the plan or its terms and conditions. The cancellation can be done within 15 days of buying the policy documents if the policyholder has not raised any claim.
3. Grace period:
Besides the above, the SBI life Smart Guaranteed savings plan also allows a 30 days’ grace period for payment of premium. However, in case the policyholder fails to make payment within the grace period, the policy would lapse and come to an end.
Inclusions of SBI life Smart Guaranteed savings plan
The SBI life Smart Guaranteed savings plan offer the facility of availing loans by the policyholder up to a maximum of 90% of the Surrender Value
Exclusions of SBI life Smart Guaranteed savings plan
In case the policyholder commits suicide within the first 12 months of buying the policy, the nominee of the policy receives 80% of the paid premium amount. Further, if the policyholder commits suicide within 12 months of the revival period of the policy, the nominee receives higher of 80% of the paid premiums or the Surrender Value acquired
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Documents Required for SBI life Smart Guaranteed savings plan
- Duly filled application form or the proposal form
- Medical history (reports)
- Address proof and related KYC documents
- Medical examination (if required as per age of policyholder and sum assured)
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FAQs: SBI Life Smart Guaranteed Savings Plan
Are guaranteed return plans good for tax saving?
Yes, guaranteed return investment plans help in saving tax under Section 80C and in many cases maturity amount can also be tax free as per terms and conditions of the purchased plan
Who is eligible to buy guaranteed income plans?
Guaranteed return insurance plans can be bought by all types of investors such as people who are investing for the first-time as well as the salaried individuals. The best guaranteed return investment plans also suit the business owners and the ones who are soon going to be retired. The policy term of the plan makes it a good choice for people within the age group of 18 and 60 years
Which factors affect returns in an investment?
There are several factors that affect returns in a guaranteed return investment such as age of investor, income, policy term, premium payment term, gender, and so on.
Which is a good – long or short-term guaranteed plan?
The suitability of a guaranteed income plan depends on the financial goals as well as the age of the person. For instance, for a young professional, the best guaranteed return plan option would be a long-term guaranteed plan whereas for people who are retiring soon may consider a short-term guaranteed plan for an assured source of income.
Are guaranteed income funds safe?
Guaranteed return policies are considered to be safe investment policies. However, it depends on the insurance company offering the plan. For definite security, it is better to go for government-backed best investment plans with guaranteed returns.
What are the disadvantages of a guaranteed income plan?
The main disadvantage of the guaranteed income plan is that you are under the threat of inflation in terms of beating the assured returns received from the plan. If the returns received doesn’t match the rising inflation rate in case of a long-term saving plan, the insured might not be able to accumulate sufficient corpus to meet his/her financial goals.