SBI Life Smart Future Choices

What is SBI Life Smart Future Choices?

SBI Life - Smart Future Choices is an individual, non-linked, participating life insurance savings product specifically curated for High Net-worth Individuals. It provides a life cover throughout the policy term while offering savings components and the flexibility to choose benefit payouts in a lump sum or as flexible payments. Policyholders can also avail regular cash bonus payouts to meet their needs at different life stages. A key feature of this guaranteed return plan is the ability to review and adjust choices as per changing needs during the policy term.

Features of SBI Life Smart Future Choices

Below are the features of SBI Life Smart Future Choices:

1. Power to Choose:

   This sbi life investment plan allows you to exercise significant control over various aspects of your policy.

2. Flexible Benefit Payouts:

   You have the option to choose how you receive your benefits, either as a lump sum or through flexible payments, adapting to your changing financial requirements.

3. Money On Demand (Flexi Choice):

   Under the Flexi Choice option, you can receive survival benefit payouts at defined intervals. These payouts can be taken or deferred, with deferred amounts earning interest and available as a lump sum later.

4. Cash Bonus Potential:

   The plan offers the possibility of receiving cash bonuses. For the first two policy years, bonuses (if declared) are paid at the end of the second year with interest. From the third year onwards, cash bonuses (if declared) are payable annually. You can choose to receive these bonuses as and when declared or defer them to accumulate with interest.

5. Choice of Benefit Options:

   At inception, you can select between Classic Choice and Flexi Choice options to tailor your benefits. You may also have the option to change this benefit option after the premium payment term, up to nine months from its end.

   • Classic Choice:

     Provides a lump sum maturity benefit along with life cover throughout the policy term. No survival benefits are payable under this option.

   • Flexi Choice:

     Offers survival benefits (10% of Basic Sum Assured at specified intervals) along with a maturity benefit (80% of Basic Sum Assured) and life cover throughout the policy term.

6. Stay Protected:

   The plan provides life cover throughout the entire policy term.

7. Tax Benefits:

   You may be eligible for tax benefits as per prevailing Income Tax laws, which are subject to change. Consulting a tax advisor is recommended for specific details.

8. Gift of Cash Bonus:

   Enjoy the potential for cash bonus payouts.

Eligibility Criteria for SBI Life Smart Future Choices

Benefits of SBI Life Smart Future Choices

SBI Life - Smart Future Choices offers a comprehensive suite of benefits:

1. Survival Benefits (Flexi Choice only):

   Under the Flexi Choice option, you are eligible to receive 10% of the Basic Sum Assured at specified intervals based on the chosen PPT and PT combination (refer to Table 1 in the source). You can utilize these payouts for various life milestones or defer them to accumulate with interest. The applicable interest rate for deferred survival benefits is the RBI Reverse Repo rate less 100 basis points as on the 1st of April of the financial year.

2. Maturity Benefits:

   On surviving until the end of the policy term, a lump sum benefit is payable:

   • Classic Choice:

     Guaranteed Sum Assured on Maturity (up to a maximum of 138% of Basic Sum Assured depending on age, PPT, and PT) + Accumulated Deferred Cash Bonuses (if any) + Terminal bonus (if declared).

   • Flexi Choice:

     Guaranteed Sum Assured on Maturity (equal to 80% of Basic Sum Assured) + Accumulated survival benefits (if any) + Accumulated Deferred Cash Bonuses (if any) + Terminal bonus (if declared). Accumulated survival benefit includes deferred survival benefits along with applicable interest.

3. Death Benefits:

   In the unfortunate event of the life assured's death during the policy term, the following will be payable:

   • Higher of A or B:

   • A = Sum Assured on Death + Accumulated Deferred Cash Bonuses (if any) + Terminal bonus (if declared)

   • B = Minimum Death Benefit (equal to 105% of total premiums received up to the date of death)

   • The Sum Assured on Death is 11 times the annualized premium.

   • If the policyholder opted for Flexi Choice, Accumulated Survival Benefit (if any) will also be paid in addition to the above.

   • The nominee has the option to receive the death benefit as a lump sum or in installments over a period of 5 years, subject to minimum installment amounts. The remaining installments can be taken as a lump sum at any time, subject to a discount rate.

Additional Details of SBI Life Smart Future Choices

1. Bonuses:

   The policy may offer Cash Bonus and Terminal Bonus, if declared, based on the company's statutory valuation at the end of each financial year. Cash Bonus is expressed as a percentage of the Basic Sum Assured, and you can choose to receive it as declared or defer it to accumulate interest. The option to change the bonus type is available with a written request made at least 30 days before the end of the policy year. The applicable interest rate for accumulated deferred cash bonus is the RBI Reverse Repo rate less 100 basis points as on the 1st of April of the financial year. Terminal Bonus may be declared upon death, surrender, or maturity as per the company's bonus policy.

2. Policy Loans:

   Policy loans are not available under this plan.

3. Free Look Period:

   You have a period of 15 days (for policies other than electronic and distance mode policies) or 30 days (for electronic and distance mode policies) from the receipt of the policy document to review the terms and conditions. If you disagree, you can return the policy for cancellation, subject to deductions for proportionate risk premium and expenses.

4. Grace Period:

   A grace period is allowed for premium payment: 30 days for yearly and half-yearly premiums and 15 days for monthly premiums. The policy remains in force during the grace period.

5. Revival Facility:

   If the policy lapses due to non-payment of premiums, it can be revived for full benefits within 5 consecutive years from the date of the first unpaid premium, subject to proof of continued insurability and payment of all due premiums with interest. The interest rate for revival is currently 250 basis points greater than the benchmark yield of the RBI Repo Rate as on the 1st of April of each financial year, compounding half-yearly.

Suicide Exclusions Under SBI Life Smart Future Choices

In case of death due to suicide within 12 months from the date of commencement of risk or revival, the nominee will be entitled to at least 80% of the total premiums paid till the date of death or the surrender value available, whichever is higher, provided the policy is in force.