The minimum age to enter the SBI Life Smart Swadhan Plus plan is 18 years. The maximum entry age varies depending on whether you are applying through a Point of Sale Person (POSP) or other channels, with POSPs having a maximum entry age of 55 years and other channels having a maximum entry age of 65 years. The policy can be active until the insured reaches either 65 years for POSPs or 75 years for other channels. The policy term ranges from 10 to 30 years, and the basic sum assured can be anywhere between Rs.5 lakhs to no limit. There are different premium payment options available such as Single Premium (SP), Limited Pay Premium Term-5 (LPPT-5), Limited Pay Premium Term-10 (LPPT-10), Limited Pay Premium Term-15 (LPPT-15), and Regular Premium (RP).

Is it possible to cancel my smart Swadhan plus policy?

For LPPT (Limited Premium Payment Term) and RP (Regular Premium) policies, there are specific requirements for acquiring paid-up benefits or a surrender value. To be eligible for these benefits, you must have paid premiums continuously for at least two consecutive years without any breaks in between. This means that if you stop paying premiums before completing two years, you may not receive any paid-up benefits or a surrender value.

Key Features of SBI Life Smart Swadhan Plus

There are several factors to consider when deciding to buy the SBI Life Smart Swadhan Plus policy. Here, we will discuss a few of these reasons.

In the tragic event that the life assured passes away, the beneficiary would get the Sum Assured on Death. For single premium plans, the Sum Assured on Death is the greater of the Basic Sum Assured, 1.25 times the single premium, or the maturity benefit. For LPPT or Regular Premium plans, the Sum Assured on Death is equal to the greater of the Basic Sum Assured, 10 times the Annualised Premium, maturity benefit, or 105% of all premiums paid up until death.

You might be interested:  What does SBI stand for in English?

In case you survive till the end of the policy term, you will receive a full refund of all the premiums you have paid. This includes both the basic premiums and any applicable taxes, without considering any extra payments made.

If you meet the criteria, SBI Life Smart Swadhan Plus offers potential tax benefits. These include deductions on premiums paid as per Section 80C of the Income Tax Act, 1961. The maximum deduction allowed is ten times the sum assured. Additionally, under Section 10(10 D) of the same act, maturity proceeds are also eligible for tax deductions up to ten times the sum assured. In case of death benefits, there are no taxes applicable.

The table shows the different rebates per thousand Basic Sum Assured for SBI Life Smart Swadhan Plus. The rebates vary based on the sum assured amount, with higher amounts receiving higher rebates.

How Does SBI Life Smart Swadhan Plus Scheme Operate?

Consider Mr. Kumar, a healthy 40-year-old man, who opts for the SBI Life Smart Swadhan Plus scheme. The plan entails a policy term of 15 years with an annual premium frequency and a payment term of 5 years. In case of any unfortunate event, the sum assured is Rs. 10 lakhs, while the basic sum assured amounts to Rs. 23,850 per year.

The policyholder will need to pay a sum of Rs. 1,19,250 as the total premium for the initial five years. If Mr. Kumar passes away during the eighth year of the policy, his chosen beneficiary will receive a lump sum death benefit equal to 100% of the Sum Assured, which amounts to Rs. 10 lakhs.

You might be interested:  2021 SBI recurring deposit interest rates

If Mr. Kumar successfully completes the 15-year policy term, he will be entitled to a maturity benefit of Rs. 1,19,250.

Exclusions of SBI Life Smart Swadhan Plus Policy

SBI Life Smart Swadhan Plus does not cover deaths caused by suicide within the first year of policy initiation or renewal. In such cases, all policy benefits cease to apply except for two scenarios: 1) If the insured person commits suicide within a year of starting the policy, the nominee will receive 80% of the premiums paid. 2) If the nominee commits suicide within a year of reviving an expired policy, they will be paid either 80% of premiums paid or the surrender value, whichever is higher.

FAQs about SBI Life Smart Swadhan Plus

The payment options for the SBI Life Smart Swadhan Plus policy include a one-time premium payment, as well as terms of 5 years, 10 years, 15 years, or the same duration as the policy itself.

You have the flexibility to pay the premiums for this plan in different frequencies such as once a year, twice a year, every three months, or on a monthly basis.

The plan has specific intervals for premium loading.

How to terminate my SBI Smart Swadhan plus?

The free look option allows policyholders to review their insurance coverage and terms before making a final decision. If you find that the SBI Life Smart Swadhan Plus policy does not meet your requirements or expectations, you have the opportunity to cancel it without incurring any penalties. However, please remember that this can only be done within the designated timeframe.

P.S. We kindly remind you once again about the importance of adhering to the specific time limit for cancelling your SBI Life Smart Swadhan Plus policy under the free look option. To avoid any inconvenience or complications, we urge you to promptly send your cancellation request to our SBI Life Office if needed.

You might be interested:  Find the Nearest Bank of India CSP Location

Does SBI Life Smart Swadhan Plus fall under 80C?

The premiums paid for the SBI Life Smart Swadhan Plus plan can be considered for tax deductions under Section 80C of the Income Tax Act. This means that individuals who invest in this plan can reduce their taxable income by the amount of premium paid, up to a certain limit specified by the government.

Additionally, policyholders can also enjoy tax benefits on the maturity amount received from this plan. As per Section 10(10D) of the Income Tax Act, any sum received upon maturity or surrender of a life insurance policy is exempted from taxation. Therefore, individuals who hold this policy will not have to pay taxes on the amount they receive at maturity.

These tax benefits make SBI Life Smart Swadhan Plus an attractive investment option for those looking to save on taxes while securing their financial future. By availing these deductions and exemptions provided by the government, investors can effectively lower their overall tax liability and maximize their savings.

What does the smart swadhan plus policy entail?

Furthermore, SBI Life Smart Swadhan Plus offers flexibility when it comes to choosing your coverage amount and tenure based on your individual needs and preferences. You can customize these aspects according to factors such as age, income level, and future financial goals.

What are the tax benefits of SBI Swadhan Plus?

The maximum deduction allowed under this section is ten times the sum assured. In other words, if your sum assured is Rs. 5 lakhs, you can claim a tax deduction of up to Rs. 50 lakhs on the premiums paid for SBI Life Smart Swadhan Plus.

Additionally, when it comes to maturity proceeds, Section 10(10 D) of the Income Tax Act governs how they are treated from a taxation perspective. This means that any money received upon maturity of your policy may also have certain tax implications.