SBI Life Smart Champ Insurance Plan is a participating non-linked individual life insurance plan. This product is developed to provide savings as well as life coverage to meet your child’s educational needs. SBI Smart Champ is designed to meet your goals as a parent. SBI Smart Champ helps you save money for your child’s education and secure your child’s future against the uncertainties of life. SBI Smart Champ Insurance Plan is a participating plan, it participates in profits and accumulates bonuses after each policy year ends until the child turns 18. So, see below the SBI Smart Champ policy details.
Eligibility:
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In the limited premium option, you have to pay till the child turns 18 years of age. The policy period is till the child turns 21 years of age. The minimum sum insured is Rs 1 lakh and the maximum sum insured is Rs 1 crore. Life insurance is on the life of the mother or father. Never buy a plan in which the insurance is on the child’s life. Apart from death, the sum insured is also given in case of complete and permanent disability of the parents in an accident. A loan facility is also available and a discount is also available on higher premiums.
Key Features of SBI Smart Champ Policy Details:
With growing age, your child dreams of the career they want to pursue and looks up to you as a parent to fulfill those ambitions. SBI Smart Champ has some key features that provide several benefits to the policyholder as mentioned below:
Educational Needs:
This plan offers guaranteed Smart Benefits. These benefits are paid when the child completes the age of 18 years till the age of 21 years in four equal annual installments.
Triple Protection:
In case of an unfortunate event during the entire term of the policy, this plan offers triple protection to your child.
Immediate Payout: This is payable as a lump sum at the onset of the insured event.
Waiver of Premium Payable: In case of the death of the insured, no future premiums need to be paid under the plan, thus ensuring the financial security of your family.
Smart Benefit: The due installments of Smart Benefits are paid by the insurer.
Flexibility: One-time i.e., single premium policy or limited premium payment options are available under the plan.
Accidental Coverage: This plan provides additional coverage for life and total permanent disability by accident for the entire policy term.
Benefits of SBI Smart Champ Policy Details:
Various benefits such as guaranteed smart benefits, triple protection of your child through lump sum payment, and the convenience of paying lump sum or limited premiums are the features of the SBI Smart Champ insurance plan. Read more to understand other benefits offered by SBI Smart Champ.
Death Benefit:
In case of death or accidental total permanent disability, this death benefit is payable only up to the sum assured paid for the insured event during the policy term or 105% of the total premiums paid for the insured event during the policy term, if the policy is in force.
Smart Benefit:
The insured can avail of Smart Benefit to meet the educational needs of his child as mentioned in the table below (at the end of the policy year when your child completes the age of 18, 19, 20, and 21 years):
Age of child (in years) Benefits:
Eighteen 25% Basic Sum Assured + 25% Simple Reversionary Bonus
19 25% Basic Sum Assured + 25% Simple Reversionary Bonus
20 25% Basic Sum Assured + 25% Simple Reversionary Bonus
21 25% Basic Sum Assured + 25% Simple Reversionary Bonus+Terminal Bonus, if applicable
Discounts:
The discounted value of future due installments including terminal bonus, if any, can be availed as a lump sum at a discounted rate of 6.25% per annum.
Waiver of Premiums Payable:
Provides financial security to your family during your absence by waiving off all due future premiums for the policy. Accrued bonuses will continue to be added, if applicable.
Policy Loan:
The policy provides a loan facility to meet emergency financial requirements before the last 3 policy years. The loan can be availed only when the policy acquires surrender value and can be available for a maximum of 90% of the surrender value. The loan interest will be declared by the company.
Discount on Large Sum Assured:
The policy offers a discount per Rs. 1,000 of the sum assured on opting for a larger cover:
Basic Sum Assured (BSA) Discount per Rs. 1,000/- of Basic Sum Assured
Surrender:
In the case of limited premium payment policies, the policy has a surrender value if premiums have been paid for 2 years, while for a single premium, the policy acquires surrender value anytime during the term.
Grace Period:
A grace period of 15 days is allowed under LPPT policy from the date of due premium for yearly/half-yearly/quarterly and for monthly frequency of premium. The insured can revive the lapsed policy within 5 years from the date of the first unpaid premium.
The policy will remain in force during the entire grace period and will lapse if no premium is paid at the end of the grace period.
Free Look Period:
The plan provides an option to review the terms and conditions of the policy within 15 days from the date of receipt of the policy. In case of dissatisfaction with the T&Cs, the insured can return the policy stating the reason for cancellation.
Tax Benefits:
Avail tax benefits under Section 80C and Section 10 (10D) under the Income Tax Act, 1961.
Exclusions:
- The policy will not cover certain conditions and there are certain permanent exclusions in its clauses. Some are given below:
- Any illness or injury arising out of war, invasion, Foreign Enemy Act, strikes, riots, etc.
- Any pre-existing conditions
- Complications arising out of exposure to intoxicants such as alcohol, drugs, smoke, etc.
- Any self-injury which leads to suicide.
- If suicide occurs within 12 months from the date of commencement of risk, the beneficiary will be liable to receive 80% of the premiums paid till the death of the policyholder.
- Psychiatric disorders, nuclear contamination, dangerous sports, etc.
- Any congenital disease contracted before 18 years.
- Injuries caused due to aviation, participation in any flying activity other than traveling as a passenger.
Conclusion:
It is a traditional insurance plan. There are two options for premium payment in this. First is single premium and second is limited premium. In the single premium option, you have to pay only once.