Last Updated on 17/10/2020 by Deepak Singla
SBI Life Smart Money Back Plan is a Participating and non-linked Money Back Plan. This life insurance plan will provide you with regular cash inflows. It has the dual benefit of that provided by the life insurance companies and regular income to help you meet your financial needs. This plan will help you fulfill several of your financial goals along with providing you with life insurance cover. Besides, it comes with an array of several features and benefits to safeguard your family from all kinds of financial trouble.
Features of SBI Life Smart Money Back Insurance Plan
- This is a participating SBI money back plan
- There are 4 variants of the payment interval
- Guaranteed Survival Benefit of 110% to 125% of assured sum which shall be paid up till maturity as per the pan variant chosen.
- Money-Back options at certain given intervals as Survival Benefits
- If the insured individual dies within the policy tenure, then they will receive the entire sum assured plus a simple reversionary bonus
- You will get a rebate on the large sum assured in the plan
- Additional riders of the plan:
- Accidental Death Benefit Rider
- Criti Care 13 Non-Linked Rider
- Accidental Total Permanent Disability Rider
- Term Assurance Rider
How does the SBI Life Smart Money Back Plan work?
The policyholder needs to pay the premium amount throughout the entire policy tenure. Since this is an SBI money back plan, a certain percentage of the assured sum shall be paid back at pre-defined intervals. There shall be 4 variants you can choose from.
So, for the 12 years policy tenure, 20% of the assured sum shall be paid at the end of the 4th year. By the end of the 8th year, 25% of the sum shall be paid, and the rest 65% shall be paid at the end of the 12th year in addition to the vested bonus. So, a total benefit comprising of 110% of the assured sum shall be paid.
If the policy tenure 15 years, then 20% of the sum assured shall be paid at the end of the year 5, 25% of the assured is paid by the end of the 10th year, and the rest 70% shall be paid at the end of the 15th year along with the vested bonus. So, a total benefit of 115% of the sum assured is paid out.
For a policy tenure of 20 years, 10% of the assured sum shall be paid at the end of the 5th year, 20% by the end of the 10th year, 30% by the end of the 15th year, and the remaining 60% of the assured sum shall be paid out by the end of the 20th year with the vested bonus. This way, a total of 120% of the assured sum is being paid.
When the policy tenure is 25 years, 10% of the assured sum shall be paid by the end of the 5th year, 10% of the assured sum shall be paid out by the end of the 10th year, 15% by the end of the 15th year, 30% at the end of the 20th year, and the rest 60% shall be paid out at the end of the 25th year along with the vested bonus. So, a total of 125% of the sum assured is paid in this case.
Benefits provided by SBI Life Smart Money Back Insurance Policy
Death Benefit: If the insured person dies within the policy tenure, the nominee will receive the total sum assured in addition to the terminal bonus (if any) and a simple reversionary bonus. These are provided to the nominee as Death Benefit in addition to Survival Benefits paid already.
The above benefits shall be paid only if the policy is in force. In case the policy is not in force but has accumulated the paid-up value, then the paid-up value shall be paid out.
Survival Benefit: This is a specific amount of the Assured Sum that is paid out at pre-defined intervals. It is paid as a certain percentage of the basic sum assured.
Survival Benefit= A fixed percentage x Basic sum assured
If the policy is not in force, then you will not stand eligible to receive the survival benefit.
The fixed percentages of the basic sum assured for all the 4 plans are given in the table below:
|Plan Option||Policy Term/ Year||4th year||5th year||8th year||10th year||12th year||15th year||20th year||25th year||Total % received|
|1||12||20%||25%||65%+ Vested Bonus||110% + Bonus|
|2||15||20%||25%||70% + Vested Bonus||115% + Bonus|
|3||20||10%||20%||30%||60% + Vested Bonus||120% + Bonus|
|4||25||10%||10%||15%||30%||60% + Vested Bonus||125% + Bonus|
Maturity Benefit: If the insured survives till the end of the tenure of the policy, the policyholder will receive a part of the Assured sum in addition to other vested bonuses (if any) plus the Terminal bonus (if any). If the policy is no longer in-force but has attained the paid-up value, then that amount shall be paid to you on the date of maturity.
Income Tax Benefit: The premiums paid towards the life insurance, then those are eligible for tax deductions up to INR 1 lakh per year under Section 80C. The maturity proceeds are tax-free as per Section 10(10)D provided all the terms and conditions are fulfilled.
Exclusions under the SBI Money Back Plan
In case, the insured commits suicide, then that will not be held as a liable reason to get cover in the first 1 year from the commencement date of the policy or the date of reinstatement of the policy. Only 80% part of the premium will be paid out to the beneficiary and after that, the contract shall stand terminated.
Eligibility criteria for SBI Money Back Plan
|Entry Age||4 yrs||For Policy Term= 12 yrs: 58 yrs|
For Policy Term= 15 yrs: 55 yrs
For Policy Term= 20 yrs: 50 yrs
For Policy Term= 25 yrs: 45 yrs
|Age at the time maturity||26 yrs||70 yrs|
|Premium||INR 4,500||No upper limit|
|Payment modes||Yearly / Half-Yearly/ Quarterly/ Monthly|
|Assured sum||INR 75,000||No upper Limit|
|Policy Tenure||12/ 15/ 20 yrs||25 yrs|
Additional Riders on SBI Life Smart Money Back Plan
The SBI Life Smart Money Back Plan offers 4 additional riders which are as follows:
- Accidental Death Benefit: If the insured faces an accident and dies as a result, then as per this rider, the nominee will be provided with the additional sum and the basic sum assured as well.
- Accidental Total Permanent Disability: If an accident leads to the permanent disability of the insured, then the plan will provide the funds needed to take care of the insured.
- Term Assurance Rider: If the policyholder dies, then as per this rider, the nominee will receive the additional assured sum in addition to the basic one.
- Criti Care 13 Non-Linked Rider: If the policyholder (insured) gets diagnosed with a certain critical illness (listed in the policy brochure), then as per this rider the assured sum will be paid out. There is a condition though: The insured needs to survive for at least 30 days from the day of being diagnosed.
SBI Money Back Plan Claims
There are 3 types of claims you can file under the SBI money back plan. The important features to remember about the same are listed below:
- The nominee or the legal heir should inform the life insurance company about the death of the insured.
- They also need to state the policy number of the insurance, the cause of death of the insured along with the date of death.
- The following documents are needed to process the claim:
- Original policy document
- Original death certificate from the municipal/ local authorities
- Claimant’s statement along with the claim forms in prescribed formats
- Hospital records (if admitted to one)
- Other documents such as post-mortem report, first information report as and when applicable
- The policy needs to be claimed within 90 days of the date of filing the claim
Survival Claim/ Maturity Claim
- The insured or the policyholder needs to submit the original policy document to the company. The hospital discharge form needs to be submitted as well.
- If your policy has been assigned, then the claim will be paid to the assignee. Else, the claim money will be paid to the policyholder only.
- The original policy document is needed to be submitted to the insurance company
- If the policy is an assigned one, then the claim will be paid to the assignee
- If the policy is not an assigned one, then the claim will be paid to:
- The insured or the policyholder, or
- The legal heir in case the policyholder dies after filing the surrender request but before the payment has been done.
Q. What will happen if I stop paying the premium?
Ans: If you stop paying the premium, then your policy will lapse and all the benefits you are to receive from it will also be ceased. In case, you have paid 3 years’ premiums, then your policy will get converted into ‘Paid Up Value’ and will continue but will hold a reduced value.
Q. How do I surrender the policy?
Ans: You can surrender the policy after completing 3 years, i.e., the surrender benefit is available after you have paid at least 3 years’ premiums.
Q. Can I take a loan against my policy?
Ans. No, loan facility is not provided along with the SBI Life Smart Money Back Plan.
Q. What if I lose the documents of my SBI Life Smart Money Back Plan?
Ans. If you lose the documents to your SBI Life Smart Money Back Plan, then you can easily apply for duplicate documents. However, you will be required to pay the charges for the document preparation and also sign an indemnity. In case the plan value is high, then you might also need to submit a surety in addition to an indemnity.
Q. Is there any difference between “Nomination & Assignment”?
Ans. A nomination is an act that states that another person (the nominee) will receive the sum assured and other benefits of the policy if the insured dies within the policy tenure.
On the other hand, you can create an assignment by an endorsement on the policy document or in the form of a separate agreement.
Q. How do I collect the Maturity amount of my policy?
Ans. When you reach the maturity period of your plan, the SBI team will reach out to you and inform you about the form and other documents you need to submit for the maturity process. If you didn’t hear from the life insurance company, then visit the nearest office with the form required and other documents. After you have submitted all the documents, then the payment will be deposited to your bank account, or via Cheque, as you like it.
Q. Will my family get the policy amount immediately after my death?
Ans. The entire SBI Life team has made the claim process much faster than most of the life insurance companies. The nominee will be able to get the death claim within a month. But, if the claim investigations are prescribed, then this period could increase to 6 months.
Q. How can I reduce my premiums of the SBI Life Smart Money Back Plan?
Ans. You can lower the cost of purchasing the SBI Life Smart Money Back Plan in the following ways:
- Purchase the plan at an early age because the risk involved is lower then.
- Choose a long policy tenure
- Opt for the annual premium payment option, and receive discounts (if any is applicable)
- Buy riders at a nominal price to receive comprehensive coverage