SBI Life Insurance Child Plan Smart Scholar

by Admin on December 15, 2010. Updated October 8, 2013 · 6 comments · Insurance


SBI Life Insurance Child Plan Smart Scholar, 8.4 out of 10 based on 13 ratings

SBI Life Insurance has introduced a new Child ULIP Plan with some extra-ordinary features.

It  is a Unit Linked Child cum Life  Insurance plan available  for parents  (Life Assured) who have a child aged between 0 – 17 years. You can pay premiums  for a  limited period whereas  the policy benefits would continue  till your child becomes an adult.

Your money can be  invested  in any of  the available Nine Funds, as per your choice and  risk appetite. At  the end of  the  term your accumulated Fund Value can be used for your child’s higher education, marriage, financial security or anything else, while withdrawals facility helps you  to meet unplanned expenses.

Protection  for your child’s  future  in your absence:

In case of your unfortunate death due  to any  reason other  than accident:
Benefit 1: We pay a lump sum benefit equal to maximum of Sum Assured and 105% of all basic premiums paid as on the date of intimation of death claim.  If on the date of  intimation of death, the Sum Assured  is  less than 105% of all premiums paid, the amount  in excess of  the Sum Assured will be paid  from your Fund by disinvestment of units.

Benefit 2: We continue to pay your future premium(s) on your behalf (inbuilt Premium Payor Waiver Benefit) and the accumulated Fund Value will be paid at maturity. In case of your unfortunate accidental death or accidental  total and permanent disability we pay:

Additional benefit equal  to Accident Sum Assured
The Accident Benefit and Premium Payor Waiver Benefit are not available  in  the Single Premium policies.

Loyalty Additions, by way of  free allocation of units:
During the term of the policy  loyalty units would be given for  in-force policies on completion of specific durations. Loyalty additions depend on  term of  the policy.

The loyalty addition at relevant Policy Year end will be equivalent to – 1%   x   [Average Fund Value over the 1  day of the last 24 policy
months]

Loyalty additions are payable at  the end of  the year(s) as per  the chart below

SBI Life Smart Scholar Loyalty Addition

The loyalty addition will be offered for all policy terms  irrespective of premium frequencies. The same will be added through allocation of units at the end of relevant policy years as mentioned in above chart. Loyalty additions will continue in case of continuance of the policy after  the death of  the Life Assured. Loyalty additions once allocated  shall  remain attached  till  the  remaining Policy Term.

Eligibility Criteria

Age at Entry:  Parent  (Life Assured)  : 18 years  to 57 years
Child: 0 years  to 17 years
Age at Maturity*:  Parent   (Life Assured)  : Maximum: 65 years
Child  : 18 Years  to 25 years

Plan Type: Limited Premium upto  the Policy Term / Single Premium
Policy Term  (PT)*: 8 years  to 25 years

SBi Scholar Child Plan Premium

Basic Life Benefit:

In the event of unfortunate death of Life Assured, a  lump sum benefit equal to higher of the Sum Assured or 105% of all premiums paid till date of death will be payable. If on the date of death, the Sum Assured  is  less than 105% of all premiums paid, the amount  in excess of the Sum Assured will be paid from your Fund by disinvestment of units. In  the event of death of child no Sum Assured  is payable. Life Assured will  inform  the Company regarding  the event.  In such case he/she can  either continue the policy or terminate the contract. In case of termination of contract, the Fund Value  (without any Surrender Charges),  will be payable. If both the Life Assured and the child die during the term of the policy, the policy will be automatically terminated and all due benefits will  be paid along with  the Fund Value.


Maturity Benefit:

On completion of the Policy Term, Maturity Benefit i.e. the Fund Value shall be paid to beneficiary in a lump sum or as per settlement option,  if chosen. The beneficiary will be: The Policyholder  if he/she survives OR Child,  in case of death of  the Life Assured during  the Policy Term

Additional  In-built Benefits:

These benefits are not available  in  the Single Premium policies.


1.  Accident Benefit:

This  in-built benefit provides an additional benefit for Accidental Death or Accidental Total Permanent Disability.  In this benefit, the Accident Sum Assured is equal to the Base Sum Assured, subject to an overall cap of Rs. 50 lakhs. This cap of Rs. 50 lakhs pertains to the total Sum Assured under all policies with SBI Life for Accidental Death and Accidental Total Permanent Disability benefit on your life.
Accident Sum Assured will  remain constant during  the Policy Term.

In respect of Accidental Death, the amount payable is in lump sum, whereas for SBi Life Insurance Child ULIP ScholarAccidental Total Permanent Disability, Accident Sum Assured will be paid in 10 equal annual installments. Accidental Death should occur within 120 days of the date of accident, solely and directly due  to  injuries and  independent of all other causes.  In case of Accidental Total Permanent Disability Benefit  the permanence of  the disability will only be established 6 months  following  the date of  the disability.

This Accident Benefit  shall be payable only once,  i.e.  in  the event of death or disability whichever occurs  first. In case of claim towards Accidental Total Permanent Disability being accepted, Accident Benefit will cease and no charges towards the same will be deducted from your Fund. However , the policy will continue with basic Life Benefit and you would continue to pay all due
premiums  thereafter .

2.  Premium Payor Waiver Benefit  (PPWB):
There is also an in-built Premium Payor Waiver Benefit under this product whereby SBI Life Insurance Company will pay all the future premiums at respective future premium dates. Subsequently on maturity your child will be entitled to the Fund Value to meet his/her needs. In case of death of child  the Premium Payor Waiver Benefit will cease and no  further charge will be deducted. If  the child dies subsequent  to  the death of  the Life Assured  the discounted value of remaining  future premiums are paid  to  legal heir of Life Assured.

SBi Scholar Charges

SBi Life Scholar charges

You may download SBI Life Insurance Scholar Child Plan from here.

Comments from InvestmentKit.com : Like always, SBI Life Insurance has come up with one of the best plan for child higher education and/or marriage planning. If you’re looking for such plan, start investing in this plan without any second thought. Low charges as compared to other ULIP’s as of now of other companies makes it on top of the list.

However, you must compare the IRR from official benefit illustration before signing the application form. If you’re taking this plan for a child upto 3-4 years for a period of 14-15 years, you can get higher returns. Higher the period, higher the returns. But for a period of about 10 years, you should invest in mutual funds rather than this plan.

 






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Admin December 15, 2010

Those who found this page were searching for:

{ 6 comments… read them below or add one }

dhanasekar December 22, 2011 at 2:29 pm

can any one say about SBI swadhan saving plans… any drawbacks inthat?
or else suggest me anything

Reply

admin December 23, 2011 at 2:27 pm

SBI Swadhan is the term insurance policy with return of premium. I do not suggest this policy. The premium is very HIGH as compares to term insurance of normal policy, which is easily available on internet. Also, the premium returned on maturity is WITHOUT any interest. So, it’s better to take simple term insurance policy and invest rest of the amount in PPF, Gold or mutual funds. It will give you more return.
Hope it will help you.
Admin

Reply

Saam November 13, 2011 at 1:07 pm

Crappppppp! the fund under Unit Plus Child Plan doesn’t grow it shrinks by deducting monthly services charges. i have paied 48000/- till date and the fun value is 34000/- wow! what a policy.
End of 10 to 15 Years it gonna b recurring 6 Units deduction every month 72units deduction per year and 720 Units in 10 Years. and the fund value gonna be zero for sure.
They charge around 30% in the begining of the policy and charge around 1 – 2% every month admin charges . what the hell.

Reply

admin November 15, 2011 at 9:58 am

Every ULIP charges some amount. It’s better to read such charges before signing the application form rather than to regret later on.
Admin

Reply

HARBANS MANN May 18, 2011 at 4:43 am

I AM NRI I WOULD LIKE TO WHAT KIND GOOD SAVING PLAN FOR CHLD EDUCATONS TO AGE SIX AND EIGHT THANX

Reply

admin June 28, 2011 at 7:51 am

It’s better to invest in equity diversified mutual funds for long term to create wealth. You can check list of good schemes at http://www.investmentkit.com/articles/2010/10/best-indian-mutual-funds/ and invest them online at http://www.investmentkit.com/articles/2011/04/invest-online-in-indian-mutual-funds/

Hope it will help you.
Admin

Reply

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