Smart Scholar

SBI Life Insurance

SBI Life Smart Scholar Review 

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Plan Name: Smart Scholar

Insurer: SBI Life Insurance Company Limited
Category: Unit Linked Insurance Plan
Objective: Financially Securing Child’s Future

Major USP of SBI Life Smart Scholar 

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Waiver of Premium Rider

Loyalty Additions
Inbuilt Accident Rider

Eligibility of SBI Life Smart Scholar 

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Minimum Entry Age: 18 years for Life Insured, 0 years for child

Maximum Entry Age: 57 years for Life Insured, 17 years for child
Maturity Age: 65 Years for Life Insured, 18-25 for child
Policy Term: 8 to 25 years
Minimum Premium: Rs 24,000
Maximum Sum Assured: Annual Premium x 20

What benefits does SBI Life Smart Scholar offer? 

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Maturity Benefit:

The fund value along is payable at maturity.

Death Benefit:
In life insured passes away, higher of Sum Assured or 105% of all premium paid will be provided to the beneficiary. The future premiums will be borne by SBI life and the accumulated amount will be paid at maturity.

Inbuilt Accident Rider: Additional amount is made available to the policyholder or nominee in case of death or disability to the life insured.

Loyalty Additions: These are added in the form of units to the fund value and are equivalent to 1% of the average fund value of the last 24 months.

What are investment options with SBI Life Smart Scholar? 

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The funds are mixture of equity and debt. You can chose among any of the following funds available which are listed below:

Index fund
 Equity Fund
 Top 300 Fund
 Equity Optimiser Fund
 P/E Managed Fund
 Growth Fund
 Balanced Fund
 Bond fund
 Money market Fund

What are the riders available with SBI Life Smart Scholar?

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The riders add extra layer of protection for your child. The riders available with Smart Scholar are:

SBI Life Personal Accident Rider
SBI Life Dread Disease Rider

Are there any tax benefits?

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Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

What are the charges in SBI Life Smart Scholar?

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Premium Allocation Charges:
The premium allocation charges for Smart Scholar are:

Policy Year	Allocation Charge
1	6.00%
2-3	4.5%
4-5	4%
6-10	1%
11+	Nil

Fund Management Charge (FMC): These are the charges levied as a percentage of fund value to manage the funds. The premium paid is allocated into different portfolio of funds. The FMC charge for money market fund is 0.25%; bond fund is 1.0%, balanced fund, index fund is 1.25% while the rest of funds have 1.35%.

Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The charges are Rs 50 per month.

Mortality Charge:These are charges deducted as a part of life cover provided and are recovered through cancellation of units. Mortality charge is dependent on the risk cover taken along with age, gender and health condition.

What else should I know about?

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Switch: Switch is made to transfer the fund value from one fund to another. You can make 2 switches per year and additional switches can be made by paying additional charges.

Partial Withdrawal: 1 partial withdrawal is free per year.

Free Look Period: Invest Assure Plus plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

What’s opinion on SBI Life Smart Scholar?

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Smart Scholar is a unit linked insurance plan which has many benefits. There is the usual waiver of premium rider as well as not so usual inbuilt accidental rider. You can opt for limited premium payment term. Loyalty additions are also made to the fund value.