Smart Scholar Plan
- Explore SBI Life Smart Scholar
- Know its Features & Benefits
- Check the Eligibility Criteria
Give your children more than your love... Give them a lifetime of Financial Security.
SBI Life Smart Scholar is an Individual, Unit Linked, Non-participating Life Insurance Policy that offers myriad coverages to secure the future of the insured children even in the absence of their parents. The plan lets you avail of twin benefits of market-linked returns on the invested money and a life cover to secure your child's future.
In case of the unfortunate death of the policyholder due to any reasons other than an accident, the plan will pay a lump sum benefit equal to a maximum of Basic Sum Assured or 105% of the total premiums paid till death.
Loyalty Additions are paid after specified intervals and solely depend on the policy term. These additions are calculated as 1% multiplied by the average fund value on the first day over the last 24 months.
The plan offers 9 fund options to choose from. One can invest in any one or can choose the combination of the below-mentioned options:
i) Equity Funds
These funds provide high-quality exposure and target higher returns in the long run. Such funds come with a High-Risk Profile.
ii) Top 300 fund
These funds provide long-term capital appreciation by investing in the stock of the top 300 companies. These funds come with a High-Risk Profile.
iii) Equity Optimizer Fund
These funds provide equity exposure and target higher returns through long-term capital gains. They also possess High-risk.
iv) Growth Fund
These funds provide long-term capital appreciation investing mainly in equity and equity-related instruments and also invest a small amount in debts. These funds come with a medium to high-risk profile.
v) Balanced Fund
These funds provide accumulation of income through investment in both equities and fixed income securities. Such investments possess medium risk.
vi) Bond Fund
These funds provide safe and less volatile investment options through debt instruments and accumulation of income through investment in fixed-income securities. These funds come with a low-risk profile.
vii) Money Market Fund
These funds park your money in liquid and safe instruments and avoid the market risk, which makes them low-risk investments.
viii) Bond Optimizer Fund
These funds earn returns higher than a pure fixed-income fund. These funds invest in Government Securities, Corporate Bonds, Money Market Instruments and up to 25% in equity instruments. These funds possess a low-risk profile.
ix) Pure Fund
These funds offer high equity exposure and target high returns in the long term. These funds come with a High-Risk Profile.
In case a policyholder is unable to make their premium payment on time, then the policy offers a grace period of 30 days in the event of the payment of premium. In case your premium payment frequency is monthly, the grace period allowed is 15 days.
The policy also comes with a free look period. If you are not pleased with the coverage, inclusions, or terms and conditions of this policy, you can choose to cancel it within 15 days of receipt of the policy documents.
On surrendering the policy before the first 5 policy years, the fund value after deducting the applicable discontinuation charge will be credited to the discontinued policy fund.
However, if the policy is surrendered after the 5 policy years, the policy will be converted into the reduced paid-up policy. Then the policyholder will be eligible to get the original sum assured, multiplied by the total number of premiums paid.
| Parameters | Minimum | Maximum |
| Entry Age | Parent (Life Assured): 18 years Child: 0 years |
Parent (Life Assured): 57 years Child: 17 years |
| Maturity Age | Child: 18 years | Parent (Life Assured): 65 years Child: 25 years |
| Policy Tenure | 8 years | 25 years |
| Premium Payment Tenure | Single Pay or 5 to 25 Years | |
| Basic Sum Assured | Limited Premium up to the policy term: 10 x Annualized Premium Single-Premium: 1.25 x Single premium |
|
**Last Updated on July, 2021
On completion of Policy Term, Fund Value will be paid as a lump sum.
In an unfortunate event of the death of the life assured, a lump-sum benefit equal to higher of the basic sum assured or 105% of the total premiums received up to the date of death will be payable.
This is an in-built benefit, which provides an additional benefit equal to the Accident Benefit Sum Assured in case of your unfortunate accidental death or accidental total and permanent disability.
Under this in-built benefit, the company continues to pay your future premium(s) on your behalf and the accumulated fund value will be paid at the time of maturity.
A policyholder will be eligible for Income Tax benefits/exemptions as per India's applicable income tax laws.
To get a clear picture of how the plan works, let us look at the below example:
Suppose, a father aged 35 years wants to buy the SBI Life Smart Scholar Plan for his 5-year old child. He chooses the Policy Term of 20 years with the Sum Assured of Rs. 10 Lakhs.
Now, he needs to pay Rs. 1 Lakh per annum as the premium amount.
Let us take the look at how much amount he will receive under both scenarios:
| Maturity Benefit | Death Benefit |
| Fund Value at Maturity at Sum Assured Rate of: @4%: Rs. 23,43,641 @8%: Rs. 37,07,729 |
Sum Assured of 10 Lakhs on Death will be paid to the nominee, and Fund Value at Maturity at Sum Assured Rate of: @4%: Rs. 23,43,641 @8%: Rs. 37,07,729 |
**Last Updated on July, 2021
In case of suicide within 12 months from the inception of the policy, the fund value as of the date will be paid as a benefit to the policyholder.
Accidents caused due to self-inflicted injury, drug abuse, war, infection, aviation, and criminal activities.
SBI Life Smart Scholar Plan is an excellent investment option if you have children aged 0 to 17. You can pay premiums for a limited time under this plan, and the policy benefits will last until your child reaches the age of an adult. Your accumulated fund value can also be used for your child's higher education, marriage, financial security, or anything else at the end of the insurance term.
Below mentioned are the following documents that are required to buy the SBI Smart Scholar policy:
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Yes, you can. The plan offers the facility of partial withdrawal so that you can overcome your unexpected expenses. This facility can be availed from the 6th policy year, provided you have paid all your previous premiums on time.
No, the SBI Life Smart Scholar allows two free switches during a policy year. And, after that, you will need to pay Rs.100 per switch.
As per the company’s terms and conditions, you are allowed to withdraw only 2 times during a policy year, and 5 times during the whole policy tenure if you have chosen a policy term of 10 years or below. Whereas, if the policy term chosen is more than 10 years, then you can withdraw funds 10 times during the whole tenure.
Yes, the SBI Smart Scholar plan allows you to revive your lapsed policy. You need to pay your outstanding premiums without any fees or interest.
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Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
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