SBI Smart Money Planner- Secure, Reliable and Flexible

What is SBI Smart Money Planner

SBI Smart Money Planner plays the dual role of an insurance policy and an investment plan offering regular income. The savings plan tends to deliver the benefits of SBI Life Insurance Plan along with the benefits of a regular source of income.

The smart money planner is an individual, non-linked and limited premium payment plan, enabling the investors/policyholders to build a corpus that will fulfill your long and short term goals whilst providing you a life cover for the tenure of the policy.

SBI Smart Money Planner has the following 4 different financial plans to choose from-

• Plan 1
• Plan 2
• Plan 3
• Plan 4

The plans have varied benefits offered by each of these plans in terms of their surrender values, premium amount to be paid, etc.

Following are the differences in each of these plans-

Plan	Policy term	Premium paying term	Growth period	Benefit period	% of Sum Assured paid as money-back
1	15 years	6 years	4 years	5 years	20%
2	20 years	6 years	4 years	10 years	10%
3	20 years	10 years	5 years	5 years	20%
4	25 years	10 years	5 years	10 years	10%

Features

• SBI Smart Money Planner can be defined as a savings plan with a ‘Growth Period’
• Each of these plans comes with surrender, death and maturity benefits
• The planner offers a life cover for the entire policy term
• The plan guarantees to pay fixed installments at a defined percentage of your sum assured in the Benefit Payout Period
• The Smart Money Planner had been launched as a traditional endowment product with limited pay and single pay options
• It must be noted that if the life insured under the policy commits suicide, irrespective of the reason, within one year of the date of reinstatement of the policy, the policy shall be considered void and the company will be liable to pay 80% of the premium paid or the surrender value, whichever is higher

Why you should use SBI’s Smart Money Planner

• Regular Income– SBI’s Smart Money Planner guarantees a regular income for the entire benefit payout period. Policyholders of the plan can enjoy the benefit of a large sum assured rebate.
• Flexible Plan– The policyholders have the flexibility to choose either the Single or Limited Premium Payout option. Additionally, the subscription of the policy is a simple and hassle-free process. The policy also allows a grace period of 30 days for the payment of premium after the due date.
• Tax Benefits– SBI’s Monthly Income Plan is eligible for tax benefits to policyholders under Section 80C and 10(10D) of the Income Tax Act.
• Death Benefits– The policy states that in the event of the death of the insured individual during the term of the policy, the death benefit is higher of the sum assured on death, along with simple reversionary bonuses and the terminal bonus or 105% of the total premiums paid- whichever is higher must be paid. Additionally, under this policy, the sum assured on death is higher of the basic sum assured, the guaranteed sum assured on maturity, or of annualized/single premium.
• Survival Benefits– The policyholders will receive the regular payouts at the end of each policy year in case of the survival of the life assured during the benefit payout period. The amount that is to be paid is equal to 20% of the basic sum insured for 5 years under Plan 1 and Plan 3. However, this payout will be 10% of the basic sum insured for 5 years under Plan 2 and Plan 4. It must be noted that this payout does not include the final survival payout installment.
• Maturity Benefits– The plan is liable to pay the guaranteed sum assured on maturity plus the vested reversionary bonuses and terminal bonus at the time of maturity of the policy. It must be noted that this stands true only in case of survival of the life assured till maturity.
• Bonus- The policyholders are to be paid simple reversionary bonuses as a percentage of the basic sum assured. Upon declaration, this bonus becomes a part of the guaranteed benefit offered by the policy. It must be noted that all future bonuses depend on the profits generated and hence, are non-guaranteed. However, under the policy, a simple reversionary bonus for the first three years is guaranteed at a minimum of 2.5% of the basic sum assured.
• Loan Benefits– The policyholders of SBI’s Smart Money Planner are eligible for a loan amount of up to 90% of the surrender value. However, it must be noted that the policyholder will be eligible for availing the loan benefits only after the policy acquires surrender value.
• Surrender Value– The surrender value for a few of the premium policies can be acquired on payment of at least 2 full policy years’ premium for Plan 1 and Plan 2. On the other hand, the premium payment for 3 full policy years acquires the full surrender value under Plan 2 and Plan 4. It must be noted that the surrender value payable is higher of the guaranteed surrender value or non-guaranteed special surrender value.
• Discounts- If the policyholder decides on a higher amount of sum assured, he/she will be offered rebates calculated as per thousand sum assured for sum assured levels of above 2 Lakh.

Who can buy

Mentioned below are the detailed eligibility conditions for individuals who wish to invest in and get insured through the SBI Smart Money Planner.

Factor	Minimum	Maximum
Age	18 Years	60 Years (for Plan 1), 55 Years (for Plan 2 & 3), 50 Years (for Plan 4)
Age at Maturity	–	75 Years
Policy Tenure	15 Years (for Plan 1), 20 Years (for Plan 2 & 3), 25 Years (for Plan 4)	–
Premium Paying Term	6 Years (for Plan 1 & 2), 10 Years (for Plan 3 & 4)	–
Premium Paying Mode	Single, Annually, Semi-Annually, Quarterly & Monthly	–
Premium Amount	–	–
Sum Assured	Rs. 1 Lakh	Rs. 5 Crores
Free Look Period	15 Days/30 Days (for Distance Marketing Channel) From The Receipt Of The Policy	–
Grace Period	30 Days (15 Days For Monthly Mode)	–
Plan Type	Offline	–

Documents Required

• PAN Card
• Identity Proof (either of PAN Card, Passport, Driving License, Voter’s ID Card, etc.)
• Address Proof (either of Property tax receipts, telephone bill, electricity bill, passport, bank statement, Aadhaar card, etc.)
• Income Proof ( either of Salary slips, Income Tax Certificate, Employer Certificate)
• Age Proof (either of Birth Certificate, Passport, School Marksheet, etc.)

Things to be Considered

• Under the policy, the premium is paid either once or for a limited tenure
• The growth period starts only after the payment of premium, after which the benefit period starts which pays the fixed percentage of sum assured on an annual basis
• If a single premium is paid, the growth period would be the aggregate of the premium paying term and the growth period of the variant of the chosen plan
• Upon death during the tenure, the death benefit and bonus will be paid
• Upon maturity of the policy, the sum assured on maturity and the bonuses will be paid
• It must be noted that the premiums must be paid for at least 2 years for all the plans after which the policyholder can either surrender the policy or make it a paid-up

How does the SBI Smart Money Planner work

Let’s assume that a person, Mr. ABC with 25 years of age opts for SBI Smart Money Planner and takes a policy of Rs. 40 Lakh. He goes for  Plan 2, which has a policy tenure of 20 years and the premium needs to be paid for 6 years.

Now, if Mr. ABC survives during the tenure, he will be liable to get Rs. 40 Lakh plus the vested reversionary bonuses and the terminal bonus. Additionally, he can also use the maturity benefits.

On the other hand, if Mr. ABC dies during the policy term, his family will be given Rs. 40 Lakh plus vested simple reversionary bonus, plus the terminal bonus or 105% of the total premium paid, whichever of the two is higher. On top of this, his family will also be given the death benefits.