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Knowledge Base Life Insurance Investment / Pension SBI Life Smart Performer Review
Wednesday, 31 August 2011 18:30

SBI Life Smart Performer Review

Written by  Yashish Dahiya
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SBI Life Smart Performer Review 


Plan Name: Smart Performer

Insurer: SBI Life Insurance Company Limited

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment


SBI Life Smart Performer Plan is a Type I ULIP which means that under the death clause, you are entitled to higher of Sum Assured or Fund Value. The minimum death benefit would be 105% of premiums paid.

Smart Performer is a NAV based plan wherein there is minimum guaranteed NAV which is equivalent to 5% more than highest NAV achieved recorded in the first 7 years from the launch of product.


Benefits of SBI Life Smart Performer 


Maturity: The fund value as on maturity date or as per guaranteed NAV will be provided to you.


Riders: The riders pay additional amount on occurrence of an eventuality. You can opt for Accidental death benefit rider with the plan.


Eligibility for SBI Life Smart Performer 


Minimum Entry Age: 9 Years

Maximum Entry Age: 65 Years

Maximum Age at Maturity: 75 Years

Policy Term: 10 Years

Premium Paying Term: 5 Years, Single Premium

Minimum Premium: Rs 50,000 (Annual Mode)


Returns in SBI Life Smart Performer 


Any ULIP’s performance is directly dependent on the performance of the fund which in turn depends upon equity and debt market. If the market is rising, it will automatically reflect on your returns.


SBI Life has two investment options. You can invest the amount in “Daily Protect Fund” and you will get the fund value based on NAV guarantee.

Or you can invest 80% of amount in “Daily Protect Fund” by which you can secure your amount as per guaranteed NAV. The rest 20% of amount will be invested in high risk based equity “Index fund”.

In a typical scenario, you will be able to get at least 10% return on investment. The investment risk is borne by the policyholder.


What charges does SBI Life Smart Performer deduct and how much? 


The premium amount paid by you is not invested directly. Initially, some charges are deducted and then units of the fund are bought. The rest of charges are deducted by cancellation of the units.


Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation is deducted for the premium paying term and ranges from 6% to 8.50% of annual premium.


Fund Management Charge: Charge ranging from 1.00% to 1.25% is deducted from the units for fund management.


Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc. For the limited premium paying term, INR 60 per month is deducted.

 

Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

 

Guarantee Charge: Annual charge of 0.50% of fund value is deducted.


Other Charges: There is charge for partial withdrawal after the limited free number has been utilized.


Are there any tax benefits?


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 else should I know about?


Switch: Not available

 

Partial Withdrawal: If policyholder is above 18 years partial withdrawal can be made and the minimum withdrawal limit is Rs 5,000. One free partial withdrawal can be made per year.

 

Grace period: Smart Performer can be renewed within 30 days from the premium due date. Additional 30 days are given after notice has been sent to revive or discontinue the policy.

 

What to do?


To Cancel Policy: Smart Performer 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.

 

If you want to cancel policy after the initial period of 15 days, you can do it but the amount will be paid only after lock in period years. If you cancel policy within 5 years from inception, the amount will grow at interest rate of 3.5% compounded annually. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.

 

Compare Returns in Investment Plans!!

How much will you get?

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19 comments
  • Comment Link vignesh Friday, 09 September 2011 10:14 posted by vignesh

    Actually I want to know the NAV of the daily protect fund. where to check?

  • Comment Link Administrator Friday, 09 September 2011 15:12 posted by Administrator

    Hi Vignesh
    The NAV of daily protect fund is available on SBI website:
    http://www.sbilife.co.in/sbilife/content/home#

  • Comment Link siva Monday, 03 October 2011 16:04 posted by siva

    Could u please provide more details on performance of "Daily protect and index fund"?

  • Comment Link abhijat Thursday, 05 January 2012 17:21 posted by abhijat

    can i know the after 5 yrs maturity value.

  • Comment Link Administrator Thursday, 05 January 2012 18:01 posted by Administrator

    Hi Abhijat
    The maturity value will depend on the fund where your money is invested and market performance. There is no guaranteed maturity amount which can be stated as of now as it is unit linked insurance plan and returns directly depend on market.

  • Comment Link sachin Tuesday, 10 January 2012 00:59 posted by sachin

    Hello , I ve taken LIC Jeevan Saral 3 yrs back . Is it adviceable to continue paying the premium for rest of yrs or stop it (after completion of 3 yrs) and take a new/ better policy

  • Comment Link Administrator Tuesday, 10 January 2012 18:24 posted by Administrator

    Hi Sachin
    LIC Jeevan Saral is a traditional/endowment plan which will pay guaranteed benefits at the end of policy term. If you surrender now, you will lose quite a bit of invested amount.
    You can convert policy to paid up and buy a new policy but the premium paid till now will be used to continue the policy(paid up) and as such is not refundable.

  • Comment Link rajeev Friday, 13 January 2012 13:10 posted by rajeev

    if i go for a single premium of Rs 50000/- with secure plan today, can u give me an idea as to what could be my probable returns if equity markets are not performing well.

  • Comment Link Administrator Friday, 13 January 2012 18:45 posted by Administrator

    Hi Rajeev
    If you opt for insurance plan with policy term of 20 years (example), it would be near to impossible that equity markets do not perform in all those years. There are both ups and downs in equity market and a person is able to secure good returns if he stays invested for complete term.

  • Comment Link rajesh Friday, 17 February 2012 23:35 posted by rajesh

    in india sbi life smart performer will be highest selling ulip plan in 1 month.

  • Comment Link Jitendra Thursday, 15 March 2012 16:13 posted by Jitendra

    Hello, I am Jitendra and few days ago i hv purchased the SBI Smart Performer Type 3. But now i m confused whether it would yeild me a good return on maturity. And whether the age is considered in this scheme. As if i have purchased a policy for my mom, she is 59 yrs of age. So she is getting sum assured AP * 7.
    So these would affect on returns.

  • Comment Link Administrator Wednesday, 21 March 2012 11:04 posted by Administrator

    Hi Jitendra
    You will get the fund value based on the NAV as specified in the article.
    It would have been better if you have bought policy in your name since you are young and as such mortality charges are low.

  • Comment Link Sunil Wednesday, 24 October 2012 12:18 posted by Sunil

    Invested Rs 99900 on 22-NOV-2010 and the present Value after 2 years is 89000 - This is a hopeless Plan

  • Comment Link 9885245143 Thursday, 25 October 2012 13:23 posted by 9885245143

    Hello,

    I have purchased the SBI smart performer policy with the plan of 50,000 per year for years and expect the return in the 9th year. As per the current market NAV if the market is not performing well, can you help to know approximate returns in the 9th year.

  • Comment Link Arun Friday, 30 November 2012 13:22 posted by Arun

    Another crap product of SBI only for the company survival and their agents. As usual got fooled by a agent by taking this policy some 3 years back. I am pretty sure I am not gonna get any profit out of this policy even after maturity.

    The policy holder (Customer) will play a role of employer by paying SBI life insurance company salary every month as "Policy Administration Charges" every month, Yearly performance bonus as "Premium Allocation Charges", salary hike as "Fund Management Charge", insurance cover as "Mortality Charge" and finally spot cash award as "Guarantee Charge". This is exactly what is happening in my case since 3 years.

    Don't even think of this policy. Invest in FD and it would assure you safe & decent returns. I never saw any magic figures in NAV in this policy how ever the stock market performs. Still continuing this policy with lots of pain. Please think again. Don't become another fool like me.

  • Comment Link Klalithareddy Wednesday, 05 December 2012 16:34 posted by Klalithareddy

    Can anybody suggest whether we can go for sbi smart performar plan or no?

  • Comment Link Ramakrishna Shetty Monday, 07 January 2013 02:07 posted by Ramakrishna Shetty

    I don't think its a good idea to invest in this plan (SBI life) unless you know a bit on how market works. Five years back I invested 1.25 lac with 5 years maturity. I really never bothered to look how it is performing and finally it got matured in Dec 2012, giving me back 1.03 lac!!!
    I expected these smart bankers to take care of my money by investing it in proper equities. But they are not good enough. Even the clauses in the policy terms ensure that they are not held responsible for anything, so they can easily play wit our money and get away with it. I think it is time to slap out the mindset that investments in India is secured, returns good money etc. with banks like SBI downgraded by Moody and our bankers mindset going western. To safeguard your hard earned money it is better to rely on FDs and good old post office saving certificates.

  • Comment Link sunil Monday, 11 February 2013 23:16 posted by sunil

    Is there any way I can take back my money after 2 years , I have invested 5 lakhs one time investment. After 2 years it is 4.9 lakhs. Was fooled by SBI brand Name.

  • Comment Link Arun Tuesday, 26 February 2013 12:53 posted by Arun

    Nope you cannot. I think there is a locking period of 5 years. You loose lot of your hard earned money if you withdraw it before. It's all trap. The general tendency of common people like us is we go with brand name, but the big players can easily manage to take away our money. Anyway they get new customers like us to continue their foul game.

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