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?