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Review of SBI Life Smart Performer Plan | SBI Life Insurance

IndianMoney.com Research Team | Posted On Monday, November 01,2010, 03:37 PM

5.0 / 5 based on 3 User Reviews

Review of SBI Life Smart Performer Plan | SBI Life Insurance

 

 

SBI Life Insurance, a life insurance company promoted by State Bank of India, has launched a new ULIP in the market named "Smart Performer" which is a Non-participating Unit Linked Life Insurance Plan.

SBI Life brings you ’Smart Performer’, a unique Unit Linked, Non Participating insurance product that offers you the twin benefits of ’Higher than the Highest’ of the daily NAV Guarantee and the prospect of market upside. What’s more, it also allows you to protect your gains through Automatic Rebalancing facility and offers you a choice of Single and Limited Premium Payment options.

Key Features of SBI Life Smart Performer Plan:

  • Guarantee at maturity based on ’5% Higher than Highest Guaranteed NAV’ during the first seven years or prevailing NAV at Maturity, whichever is higher.

  • Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside through ‘Secure Plan’ and ‘Secure N Grow Plan’ respectively

  • ‘Automatic Rebalancing’ to Lock-in your gains

  • Convenience through single premium (SP) or 5 year Premium Paying Term (PPT)

  • Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of your Annualised Premium (AP), based on your age.

  • Liquidity through Partial Withdrawal(s)

  • Option to customize the product with Accidental Death Benefit       

  • Attractive Tax benefits under the Income Tax Act, 1961

Product Snapshot

Minimum Age at Entry

9 years

Maximum Age at Entry

65years

Maximum Age at Maturity

75 years

Premium Payment Term

Single Premium or 5 years

Minimum Limited Premium Amounts (X 100)

Yearly         Rs 50,000

Half-yearly Rs 44,000

Quarterly     Rs 36,000

Monthly        Rs 20,000

Maximum Limited Premium Amounts

No limits

Minimum Single Premium (X 100)

Rs 60,000

Maximum Single Premium Amounts

No limits

Policy Term

10 years

Premium Modes

Single / Yearly / Half-yearly / Quarterly / Monthly

Plan Options

1.    Secure Plan - All your funds would be invested in the Daily Protect Fund

2.    Secure N Grow Plan - 80% of your funds would be invested in the Daily Protect Fund and 20% would be invested in the Index Fund

Sum Assured

Age

5 Year PPT

Single Premium

 

Min.

Max.

Min.

Max.

Below 45

10*AP

20*AP

1.25*SP

5*SP

45 to 60

7*AP

20*AP

1.25*SP

5*SP

61&Above

7*AP

7*AP

1.25*SP

1.25*SP

Benefits of SBI Life Smart Performer Plan

Following are the major benefits of SBI Life Smart Performer Plan

Maturity Benefit

On completion of Policy Term, Maturity Value will be paid. Maturity value for the Daily Protect Fund will be calculated based on NAV which is higher of:

  • Prevailing NAV as on date of Maturity OR

  • Higher than Highest Guaranteed NAV (There will be an increment of 5% to the Highest NAV achieved during the first seven years under the ‘Daily Protect Fund’.)

Death Benefit

On death higher of the Fund Value or Sum Assured is payable; subject to a minimum of 105% of the total premiums paid at the time of death.

Accidental Death Benefit Option

Accidental Death Benefit: Provides additional death benefit if the death occurs as a result of an accident.

Charges in SBI Life Smart Performer Plan

Premium Allocation Charge:

This charge shall be deducted from Premiums as they are paid, before allocation of units each time a Premium is received, and shall be as follows:

Policy Year

Premium Allocation Charge (% of premium)

Year 1

8.50%

Year2

6.00%

Year 3

6.00%

Year 4

6.00%

Year 5

6.00%

Single Premium

3.00%

Policy Administration Charges:

The policy administration charge will be recovered by cancelling units on a monthly basis proportionately from each Investment Fund.

Type

Policy Administration Charges

LPPT

Rs.60/- per month

Single Premium

Rs.50/- per month

Fund Management Charges:

A certain fixed percentage of the relevant Fund before calculating the NAV on a daily basis will be charged as per the rates below:

Fund Name

Fund Management Charges

Daily Protect Fund

1.00% p.a.

Index Fund

1.25% p.a.

Guarantee Charges:

A charge of 0.50% per annum of Daily Protect Fund Value, would be recovered from the Fund to provide the NAV guarantee.

Funds

Following are the two major funds available under this plan.

Daily Protect Fund

The objective of this Fund is to provide NAV protection using the Constant Proportion Portfolio Insurance methodology (CPPI). The Asset Allocation is dynamically rebalanced to give a guarantee of 105% of the highest NAV in the built-up phase.

See Also: What is NAV? How is NAV Calculated?

Index Fund

This Fund closely tracks the Nifty Index. To provide returns closely corresponding to returns of NSE S&P CNX Nifty Index, though investment regulations may restrict investment in group companies and some large cap companies listed on the Nifty Index, leading to higher tracking error.

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