6 Best SBI Investment Plans for 5 Years, Policy Term, Entry Age, and Maturity Age

Updated on Feb 16, 2024

One of the things in our life that matters the most is happiness. And happiness comes in abundance when everything is settled and well-managed. Whether it is the schooling of your kids or planning your retirement, everything should be properly managed, and it is also possible if your finances are managed. This is why you need to make investments so that you can get a good return. As far as investment is concerned, you can take a look at SBI investment plans for 5 years.

Overview of SBI Investment Plans for 5 Years

The best thing about these plans is that you have to put your money only for five years. You can expect a good return after five years. Here are some of the best investment plans in SBI mentioned below:

1. SBI Life – Smart Elite Plan

SBI Life – Smart Elite Plan is ideal for those people who fall into the category of a high-income group. The investors get complete autonomy in the decision of the funds in which they want to invest their money. This is basically a ULIP that comes with a maturity period of 5 years. The minimum age to buy this plan is 18 years, while the maximum age is 65 years. The returns offered by this plan depend totally on the market situation. And it is paid in a lump sum amount. Withdrawing money from this plan can be started from the 6th year of buying the plan. The benefits under this plan include a death benefit, accidental death, permanently disabled, 4 different fund options, etc.

Smart Elite Plan eligibility:

Features and benefits of Smart Elite Plan:

• Maturity benefits – If the insured survives the policy till maturity, the premium paid is returned as a lump sum amount
• Death benefit – Depends on the option you opt for – gold/platinum plan. Under the gold plan greater sum assured minus partial withdrawal or the fund value is paid, and for the platinum plan sum assured together with the fund value is paid.
• The plan also offers in-built accidental benefits.
• Allows the insured to choose from four fund options

Also Read: ULIP Calculator

2. SBI Life – Smart Privilege Plan

This is a non-participating plan, and to buy this plan, one has to be as young as 13 years old. Parents or guardians can buy this plan on behalf of their child who is at least 13 years old. The highest tenure limit of this plan is 70 years. It is a unit-linked plan. During the tenure of this plan, the investor will be able to switch between several funds. The returns accumulated all through the tenure depend on the performance of the market. This means that while the plan is in motion, the policyholder will not get any financial benefit that is in the form of dividends. The returns that the policyholder gathers during the policy term are again invested in the market. This is a great plan option for people who want to create wealth and insurance. Upon the maturity of this plan, the amount is paid in a lump sum amount.

Smart Privilege Plan eligibility:

Features and benefits of Smart Privilege Plan:

• Death benefit – Premium paid till the time of death of the insured or basic sum assured minus the partial withdrawal, or 105% of the total premium received till death of the insured (whichever is higher) is paid as a death benefit to the nominee
• Maturity benefits – If the insured outlives the plan till maturity, he/she receives the premium paid as a lump sum pay

Other benefits – Loyalty additions which is a particular percentage of average fund value also paid

Also Read: Safe Investments With High Returns

3. SBI Life – Shubh Nivesh Plan

This SBI investment plan is a participating plan and you will get a maturity benefit. The returns that you gather over the years depend on the performance of the funds in the market. The minimum entry age for the plan is 18 years, while the maximum is 60 years.

This is also one of the endowment plans that protect the family of the investor. On the untimely demise of the investor, the beneficiary will receive a death benefit and revised bonus. Along with the cover plan, you can also get riders under SBI Life – Shubh Nivesh Plan.

Shubh Nivesh Plan eligibility:

Features and benefits of Shubh Nivesh Plan:

• Death benefit – If the insured dies during the term of the policy, the nominee receives the sum assured along with a terminal bonus and vested reversionary bonus
• Maturity benefits – Maturity benefits come in the form of a sum assured plus a bonus (reversionary and terminal bonus)
• Bonus – A terminal bonus plus a simple reversionary bonus is paid. Offers high sum assured rebate.

Also Read: SBI Health Insurance Claim Settlement Ratio

4. SBI Life – Smart Wealth Builder Plan

The minimum age to purchase this plan is at least 7 years. This means parents or guardians of a 7-year-old child can buy this plan on his/her behalf. This is a great option for people who want to generate wealth. Among all the investment plans offered by SBI, this has the lowest entry age. Under this plan, income is generated for investors by investing funds in the market. However, the investors are not offered any dividends during the tenure. The maturity benefits depend on the performance of the market. The maturity benefit is paid in a lump sum.

During the period, in which the plan is in motion, funds can be withdrawn under certain circumstances. The amount that has been debited is then deducted from the sum assured. The sum assured is later paid to the investors as a maturity benefit. The investors can choose from the 11 different funds as per their choice.

Smart Wealth Builder Plan eligibility:

Features and benefits of Smart Wealth Builder Plan:

• Death benefit – Premium paid till the time of death of the insured is paid back or the basic sum assured less applicable partial withdrawal (whichever is higher) is paid as a death benefit
• Maturity benefits – If the insured outlives the plan till maturity, he/she receives the lump sum pay of the fund value
• Offers the option to invest in several funds

Also Read: SBI General Insurance Company Limited

5. SBI Life – Saral Pension

This is one of the best investment SBI plans that is targeted mainly at retired or soon-to-be retired individuals. The interest culminates throughout the tenure and the policyholder receives benefits after the term end. Despite being a pension plan, the minimum age to buy it is 18 years. Extra benefits can be received under this plan in the form of bonuses.

Saral Pension Plan eligibility:

Features and benefits of Saral Pension:

• Death benefit – If the insured dies during the term of the period, the total premium received till the time of the death is paid back along with a vested reversionary bonus
• Maturity benefits – Maturity is available as the total premium received or the basic sum assured (whichever is greater) together with a bonus (reversionary and terminal)

Bonus – For the first five years, a simple reversionary bonus is offered. Active policies can also claim a guaranteed bonus.

Also Read: SBI annuity deposit scheme calculator

6. SBI Life – Grameen Bima

This is an absolutely hassle-free micro-insurance plan, which is also popular for being non-linked. Therefore, there is no need to be worried about the market performance. No maturity benefit comes with the plan. Also, you will be able to surrender the plan after one year of buying it. On surrendering the policy, you will get back the premium after taxation.

Grameen Bima Plan eligibility:

Features and benefits of Grameen Bima:

• Death benefit – If the insured dies during the term of the period, the nominee receives the lump sum amount of the sum assured
• Maturity benefits – The plan comes with no maturity benefits

Surrender benefits – It is available only after the completion of the first year of the policy. But surrender benefits are not offered in the last year of the plan

Also Read: SBI life insurance 50,000 per year plan for 5 years

Advantages of 5-Year SBI Life Investment Plan

The prominent benefits are:

• Maturity benefit – Maturity benefits are offered if the policyholder outlives the policy term of the insurance cover and if the person has been paying the premiums on time.
• Death benefit – In the event of the sad demise of the insured within the policy tenure, the beneficiary of the plan gets insurance coverage in the form of a death benefit.

Key Features of SBI Life Insurance

To know the SBI Life Insurance Company even better, here are the features that you can go through.

1. PAN India presence

SBI Life Insurance is present across India and has more than 40,000 partner branches and 970 offices in various nooks of the country. For any claim-related issue or policy-related query, the policyholders can visit their nearest branch.

2. Solvency ratio

According to the annual report of IRDAI 2020-2021, the solvency ratio of SBI Life Insurance is 2.33. By checking the solvency ratio, you can understand the ability of a company to meet its financial obligations.

Also Read: How to break FD in SBI

Benefits of SBI Life Investment Plans

SBI Life Investments plans come with several benefits. Here are some of them mentioned below:

1. Better returns at lower premiums

By paying lower premiums, you can expect higher coverage in any SBI Life Investment plan.

2. Add riders for extra coverage

SBI Life Investment plans enable the policyholders to buy riders and get additional coverage. The available riders include accidental death, critical illness rider, and total or permanent disability rider.

3. Tax benefits

You can claim tax benefits on the SBI schemes for investment. Under Section 80C of the Income Tax Act of 1961, you will be able to avail of tax exemption benefits. The maturity benefit you get is also tax-free under Section 10 (10) D of the Income Tax Act, 1961.

4. Additional benefits

In case of an accident that leads to permanent and total disability, one can avail of a premium waiver.

How to Buy SBI Life Insurance Plans?

If you are willing to buy SBI Life Insurance plans, you can either do it through the official website of SBI Life Insurance Company or from various other portals. The best thing is that no matter which option you are choosing, you can do it from the comfort of your home.

Here are the steps to follow while buying it from the SBI Life Insurance company:

• The first thing will be to visit the official website of SBI Life Insurance Company
• You can click on the Money Back Plans which you can find on the navigation bar. You also have to select the category of plans that you want to buy
• Now click on the Buy Now button and enter the necessary details
• By clicking on Next, you can select a plan that suits you the best
• Once you select the Cover, you can then make the payment.

Now that you know about these plans, you can choose the one that suits you and buy one accordingly.

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