SBI Life Smart Scholar Plan

Imagine your child growing up without limits on their dreams. Their dream to be an astronaut, a doctor, or a street artist is supported by a strong financial plan that will grow with them. Parents could confidently say, "Yes, you can," to their biggest ambitions. Although that may sound like a fantasy, it is a reality that lies wholly within grasp, provided the right financial tools are mobilised.

But let's face it, being a parent brings along its own set of different problems. As parents, we want our children to have a world of opportunities, quality education, and financial security to follow their passions. But how can we ensure that our aspirations for them will not get derailed by some unexpected life events or financial setbacks?

Welcome the SBI Life Smart Scholar plan, a one-of-its-kind insurance-cum-investment solution targeted at assisting parents like you in building a financial cushion that is resistant to shock. It is not mere insurance but one sure-shot planned method of growing your wealth while covering the future of your child, come what may.

In this article, we take a closer look at the SBI Life Smart Scholar Plan, breaking down some of the key features, benefits, and workings in simple, easily digestible insights.

So, let’s begin!
 

Key Features And Benefits Of SBI Life Smart Scholar Plan

First, let’s begin with understanding why the SBI Life Smart Scholar Plan is a profitable approach.

Key Benefits:

• Create a financial foundation for your child through investments in market-linked plans and choose from 10 fund options.

• Avail of the dual advantage of a lump sum payout in addition to the waiver of premiums.
  • Continue the policy even in the event of the death of the insured during the term.
  • However, the benefit mentioned above will not be applicable for Single Premium and Paid-up Policies.
• Maximise your investments with loyalty additions that are credited to in-force policies upon completion of specified durations as per the policy term.
   

Key Features:

Let’s look at a few features of this policy that make it more beneficial:

• Lump sum payout at the time of maturity.
• Premium waiver in case of eventuality.
• Regular addition of loyalty on the completion of specific durations in case of in-force policy, varying according to the policy term.
• Ten fund options to choose from.
• Partial withdrawals can be availed from the 6th policy year.

Wondering if you qualify to avail the benefits of the SBI Smart Scholar Plan? Think no more!
 

Eligibility Conditions Of SBI Life - Smart Scholar

Below are the criteria to know if you are eligible for the plan or not:

Age at the time of entry:

• The parent, who is the life assured, should be a minimum of 18 years old, while the maximum age limit is 50 years.
• The child, on the other hand, can be a maximum of 17 years old.

Age at the time of maturity:

• The parent does not have any minimum age limit. Although, the child must be 18 years old.
• The maximum age the parent can be at the time of maturity is 65 years, while the child can be 25 years of age.

Duration of Policy:

• The usual policy term is 8 years to 25 years, subject to certain conditions, such as that the child should be at least 18 years old at the time of maturity.

Premium Paying Term (PPT):

• The premium can be made in the form of single pay, which occurs at the time of policy inception.
• You can also opt for a limited pay option, under which the premium is paid for up to 5 years of the policy term minus one year.
• The premiums can be paid for the whole policy term under the regular option.

Sum Assured:

• If you have opted for limited pay or regular pay, the payout is made of 10 times the yearly premium.
• On the other hand, for the single pay option, the payout is 1.25 times the single premium.

Let’s have a deeper understanding of the product!

Product Specification:

Here’s a quick glance over the various aspects of the SBI Life Smart Scholar Plan:

• Lump sum payout at the time of maturity.
• Premium can be waived in case of eventuality.
• Standard addition of loyalty on completion of certain durations in the case of an in-force policy, which would vary with the policy term.
• There is a choice of ten different fund options.
• Partial withdrawal is available from the 6th policy year.

Advantages:

Let’s look at the various perks the plan has to offer:

• Security: Secure your child's future with a comprehensive and agile financial solution.
• Reliability: Let your child's dreams remain intact with an inbuilt premium waiver that kicks in upon the demise of the policyholder, besides steadily growing your funds through regular loyalty additions.
• Flexibility: Invest in a range of funds to suit your goals.
• Liquidity: Cash is available at any time, and partial withdrawals toward any unforeseen expenses may crop up.
   

How Does The SBI Life Smart Scholar Insurance Plan Work?

SBI Life Smart Scholar is a plan offering dual benefits of insurance and investment under a single policy. The unit value of your policy, net of applicable charges, will vary in accordance with the performance of the SBI Life funds chosen by you.
 

Premium Details Of SBI Life Smart Scholar Plan

Here’s a more comprehensive look to understand the premium details of the plan:

Want to know more? Keep scrolling!
 

Policy Details Of SBI Life Smart Scholar Plan

Let’s have an in-depth understanding of the SBI Life Smart Scholar Plan:

• Grace Period: You have a grace period of 30 days for annual, half-yearly, and quarterly modes of premium payment and 15 days if you pay the premium monthly. During this period, the policy remains in force, and applicable charges shall continue to be deducted. In case of the death of the life assured during the said period, the Death Benefit applicable under an in-force policy would be payable.
   
• Policy Termination or Surrender Benefit: You may surrender your policy when it gets to 5 years old. However, if it is handed over five years before, then the fund value minus the discontinuance fee will be transferred to the Discontinued Policy Fund, and a minimum of 4% interest per annum will be earned on that fund. On completion of 5 years from the start date, such amount from the Discontinued Policy Fund becomes payable to the policyholder. In case the policy is retrieved after the completion of five years, the whole value as of the date of surrender shall be paid off without any charges.
   
• Free Look Period: From the time you get your policy document, electronically or otherwise, you can take advantage of a 30-day free look period in which to review it. If you do not agree with any policy terms or conditions and have not made any claim, then there is an option for you to return it back to the company, giving the reasons for cancellation. However, regardless of the reasons given for cancellation, you shall be entitled to a refund of the amount as follows:
  • The Fund Value, any deductions that apply for Policy Administration Charges, Premium Allocation Charges, Mortality Charges, Premium Payor Waiver Benefit (PPWB) Charges, Accident Benefit Charges, and any corresponding applicable taxes will be refunded. Moreover, the Mortality Charges, PPWB Charges, Accident Benefit Charges and appropriate applicable taxes for the cover period will be deducted. In addition to this, stamp duty and/or medical expenses (if relevant) will also be subtracted.
  • Free-look cancellations will see units of every Fund being liquidated at the NAV as follows:
    • If the cancellation request and the policy document etc., come in before 3:00 p.m. on any given day, the NAV is closed on that same day
    • But if it comes after 3:00 p.m., the closing NAV is for the next working day.
    • The payment shall be made in a lump sum.

Downloads:

If you want to know more about the SBI Life Smart Scholar Plan, you can skim through the following:

• Product Brochure
• Product Guide
   

Inclusion Of SBI Life Smart Scholar Plan

Let’s look at what is included in the plan:

• Free Partial Withdrawal: One free partial withdrawal can be done each year, with a minimum amount of ₹5,000 and a maximum of 15% of the Fund Value on that date.
• Premium Redirection: Premium redirection is only available from the second year onwards, where you can redirect your future premiums to other available funds.
• Free Switches: You are allowed to carry out a maximum of 2 free fund switches per policy year.
   

Exclusion Of SBI Life Smart Scholar Plan

Moving on, here is a breakdown of all the excluded circumstances under the plan:

• Suicide Exclusion: If the life assured dies due to suicide within 12 months from the date of commencement of the policy or from the date of its revival, as applicable, then the nominee or the beneficiary appointed by the policyholder will get the fund value as existing on such date when death is reported.
• Accident Benefit Exclusion: Death or completely and irrevocably disability resulting from or stemming from the events listed hereunder is excluded-
  • Infection: All sorts of infections are not supposed to be part of death or permanent disability except those brought about by some externally visible wounds that were unintentionally inflicted.
  • Drug Abuse: Alcohol dependence, solvent misuse, or pharmaceutical/recreational drugs, unless prescribed by an authorised medical practitioner, will void a claim against an insured person.
  • Intentionally caused harm to oneself: Self-inflicted injury done knowingly and willingly, including but not limited to injuries resulting from suicide attempts.
  • Criminal acts: The person whose life is assured has participated in criminal and/or unlawful acts with criminal or unlawful intent.
  • War and Civil Commotion: War, invasion, hostilities (even if there is no declaration of war), civil war, rebellion, revolution; act by alien enemy; armed or unarmed truces; mutiny; insurrectionist riots. Participation in any naval, military or air force operations in peacetime or while being on duty in any police paramilitary or similar organisation.
  • Nuclear Pollution: This refers to the nature of nuclear products or their possessions, which are radioactive, explosive or hazardous due to their being made of nuclear products or accidents occurring from such nature.
  • Aviation: Life Assured participating in any aviation activity other than being a passenger on a commercial aircraft that is licensed.
  • Dangerous games and hobbies: These include dangerous professional sports and recreational activities like diving, racing in cars or motorcycles, underwater sports with or without breathing devices, fighting disciplines that involve physical training such as karate, hunting wild animals, climbing high mountains, jumping off planes with parachutes, and bungee jumping.

Planning to buy the plan? Here’s what you need for a smoother process!
 

Documents Required For SBI Life Smart Scholar Plan

For policyholders, completing an 'Application Form/Proposal Form' with the right medical history is a must. This requires it to be in tandem with supporting address verification documents and KYC (Know Your Customer) documents. There might be instances where you also have to have a medical test.
 

Wrapping It Up!

Consider the SBI Life Smart Scholar plan as more than just an insurance policy; rather, it is a strategic means of finding your child’s financial future. In addition to blending investment and life insurance, this plan makes sure that all dreams for the child will be within reach regardless of any uncertainties faced in life. The flexible payment modes, choice of funds available, and safety nets such as premium waivers are some of the features that have made the plan a favoured companion for parenthood journeys.

Thus, it becomes increasingly easy to take the first step towards ensuring a better future for your child. Simply evaluate what you want financially, then pick options based on these needs. Do not forget that financial security starts with early planning and wise decisions since those two goals can easily be achieved through the SBI Life Smart Scholar plan.

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