SBI Life Insurance Smart Elite ULIP

SBI Life Smart Elite ULIPSBI Life Insurance has announced 3 new insurance plans today. Let's discuss them. Starting with Smart Elite ULIP Plan.

Introduction:
 
SBI Life – Smart Elite is a Unit Linked Insurance plan. It gives you flexibility to pay premium(s) for limited term or single premium, with the freedom to stay invested and protected for long term.

Key Features:
 
•     Maximum value addition through excellent allocation rates.
•     Pay premiums only for a limited term of 5, 8 or 10 years or a Single Payment, as per your convenience and enjoy benefits throughout the chosen policy term.
•    No Premium Allocation Charges from 6th policy year onwards, thereby enhancing your fund value.
•     Two protection options available: Gold Option & Platinum Option
•     Invest in wide range of funds and manage them as per your convenience.
•     Life Insurance coverage with minimum Sum Assured of 10 or 7 times of your Annual Premium (AP), based on your age.
•     Switch and redirection facility, to pilot your investments.
•     Option to increase/decrease your Sum Assured from 6th policy year onwards.
•     Accidental Death and Accidental Total and Permanent Disability (Accidental TPD) benefit automatically comes to you as an integral part of the plan!
•     Attractive Tax benefits under the Income Tax Act, 1961, subject to conditions**.

 

SBi Life Smart Elite ULIP Features

 

Partial Withdrawals:

 

  • Partial Withdrawals are available  from  the 6  Policy Year onwards.
  • One  free Partial Withdrawal  in a Policy Year  is allowed.  A charge of Rs. 100 per withdrawal  in excess of  free Partial Withdrawal will be charged. There  is no carry  forward of  free unused Partial Withdrawal  for  future Policy Years.
  • A maximum of 2 Partial Withdrawals can be made in one Policy Year and not more than 5 Partial Withdrawals are allowed in entire Policy Term  in case of Policy Term 10 years or below and 10 Partial Withdrawals for Policy Term above 10 years.
  • Minimum Partial Withdrawal amount allowed is Rs. 5,000 (in multiple of Rs. 1,000). Maximum Partial Withdrawal allowed is up  to 15% of Fund Value as on withdrawal  request date.
  • Subsequent to a Partial Withdrawal at any time during the Policy Term,  if the Fund Value  is not sufficient to recover the charges, the policy will be terminated immediately and the Fund Value without deduction of any charges will be paid to the
  • Policyholder . All  rights and benefits under  the policy will automatically cease.

 Charges under  the plan:

Premium Allocation Charge: This charge  shall be deducted  from Premiums at  the  time of  receipt of such Premium.

SBI Life Elite Charges

The allocation  to units  is made after  the deduction of  the charge  from  the Premium  received.




Policy Administration Charges:

A monthly policy administration charge of Rs. 60 per month for LPPT and Rs. 50 per month for Single Premium; shall be deducted by cancelling units at  the prevailing unit price on  the  first business day of each Policy Month.

Fund Management Charges:
A certain  fixed percentage of  the  relevant Fund before calculating  the NAV on a daily basis will be charged as per  the  rates below:

SBI Life Elite FMC

These  charges may be  increased within  the maximum  limit allowed with notice  to  the Policyholder ,  subject  to prior  IRDA approval.

Comments from InvestmentKit.com : SBI Life always comes up with some special plans – different from other companies. This time it has introduced plans for HNI customers as the minimum annual premium in this plan is Rs.1,50,000. Even if someone wants SIP, the minimum monthly premium is Rs.12,500. Certainly, this premium is not in the pocket of middle class people.

From 6th year onwards, ONLY one partial withdrawn is allowed and that for a maximum of 15% of fund value as on that day. That limits the liquidity in this plan.

The total premium allocation charges are 15% in first 5 years – very high as compared to equity diversified mutual funds. The Fund management charges are less than mutual funds.

Overall, the plan does not come with some SPECIAL kind of attraction. But one can say the premium allocation charges are less than some of the other ULIP available in the market. One can go with this ULIP if the investment time horizon is more than 15 years.

One can get more if you invest the same amount in equity diversified mutual funds for the same tenure. Ofcoure, there will be no insurance there. For that, you can take some good term insurance plan.

Download SBI Life Smart Elite Brochure here.






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