SBI Life – Smart Guaranteed Savings Plan – Check Review, Details, and Benefits

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The Smart Guaranteed Savings Plan from SBI is a traditional non-participating individual plan. It guarantees assured savings through loyalty add-ons to enhance accumulated sums of money.

True to its name, the SBI Life Smart Guaranteed Savings Plan is a policy that enhances accumulated corpus along with offering insurance coverage. Let’s take a look at the policy details, in this post.

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Key Features of SBI Life Smart Guaranteed Savings Plan

Below are some key features of the SBI Guaranteed Income Plan:

  • This is a non-participating policy and it offers the option of limited premium payment for 7 years term
  • From the end of the first year of policy, guaranteed income starts coming under this plan as per the premium instalment selected
  • Also, the guaranteed additions of the plan are calculated on the basis of cumulative premiums paid under the plan.
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Benefits of SBI Life Smart Guaranteed Savings Plan

Here are some benefits of the SBI Guaranteed Return Plan:

  • When the plan matures, the policyholder receives the basic Sum Assured along with the aggregate guaranteed additions
  • The life smart guaranteed income plan allows dual benefits of savings and protection within one single plan, making it a viable investment product
  • The Guaranteed Additions under the plan earn an interest of 5.5 to 6% of the cumulative premiums that is paid as per the range of premium
  • Under this guaranteed return plan, the premium is paid only for half the tenure of policy that is 7 years, while the protection is assured for the entire term of 15 years of the policy
  • In case the policyholder dies, the death benefit paid is higher than the basic sum assured along with Guaranteed Additions accumulated so far
  • The plan further offers tax exemptions on the premium under the Income Tax Act

SBI Life Smart Guaranteed Savings Plan – Product Details

Features Minimum  Maximum
Age of Entry 18 years 50 years
Maturity Age  65 years
Policy Duration  15 years
Premium Payment Term  7 years
Frequency of Premium payment Annual
Premium per year INR 15,000 INR 75,000
Sum Assured  As per the chosen premium

SBI Life Smart Guaranteed Savings Plan – Premium Details

Age 35 years  45 years
Premium  INR 50,000 INR 50,000
Sum Assured INR 353,500 INR 341,500
Total Guaranteed Additions at Maturity INR 252,000 INR 252,000
Assured Maturity Benefit INR 605 500 INR 593,500

SBI Life Smart Guaranteed Savings Plan – Policy Details

Grace period

Like other plans, the guaranteed savings plan from SBI offers a 30 days’ grace period for paying premiums. The policyholder of the SBI Life Guaranteed Plan is expected to pay the premium within the grace period to avoid a lapse in the policy

Surrender Benefit

The Policyholder under this plan can surrender the plan to receive the Surrender Value, which is higher than the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).

  • Guaranteed Surender Value (GSV) is the basic premiums paid which include the GSV of Guaranteed Additions
  • Special Surrender Value (SSV) is the paid-up value on maturity .

Free look period

If a policyholder is not happy with the policy terms and conditions, she/he has the option to cancel the policy within the 15 days free look period.

Inclusions in SBI Life Smart Guaranteed Savings Plan

The SBI Life Guaranteed income plan allow loan facility up to a maximum of 90% of the Surrender Value

Exclusions in SBI Life Smart Guaranteed Savings Plan

If within 12 months of buying the policy, the policyholder commits suicide, the plan would return 80% of premiums to the nominee. And in case the policyholder commits suicide within a year of revival, greater than 80% of premiums paid is offered to the nominee or acquired Surrender Value is paid to the nominee.

Documents Required for SBI Life Smart Guaranteed Savings Plan

  • Application form to procure the policy
  • Papers to establish accurate medical history
  • Address proof
  • Other KYC documents
  • Medical check-up of the policy seeker may be needed in certain cases as per the sum assured and the age

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To Conclude

The SBI Smart Guaranteed Savings Plan allows savings and insurance protection. This plan helps in inculcating the habit of saving among customers. It also offers guaranteed benefits in case of death of the policyholder.

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FAQs on SBI Life – Smart Guaranteed Savings Plan

Is SBI Life Insurance a good investment?

Yes, SBI Life Insurance is a good investment option that suits best for your future savings purpose. It also offers the facility of tax exemption. The plan allows low investment with high returns.

What are the advantages of a guaranteed savings plan?

With a guaranteed savings plan, one can be assured of getting the benefits at plan maturity. The advantages are similar to the assured sum decided at the time of plan commencement. The maturity benefit is paid if the policyholder outlives the plan.

What is the drawback of a guaranteed fund?

Guaranteed funds may also have limitations depending on how the plan applies. It may not always imply that an investor will receive the money back that the person has invested as guaranteed by the plan. Also, if the fund manager is removed, it may imply that the plan is no longer valid.

What is a guaranteed savings plan?

A guaranteed saving investment plan is also termed as a guaranteed return plan. These are non-participating insurance policies which provide a fixed sum at maturity to the insured. Thus, under these plans the insured pays the premium amount for a particular period of time and once that period is over the plan matures and the policyholder gets an amount as guaranteed benefit.

Which is the best investment scheme by SBI?

Below are some investment schemes offered by SBI:
SBI Magnum Multi-cap Fund
SBI Magnum Tax Gain Fund
SBI Short Term Debt Fund
SBI Small and Midcap Fund
SBI Flexicap Fund Direct-Growth etc.

 

Other Investment Products

Feb 28, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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