Thursday, 2 January 2014

SBI Life - Flexi Smart Plus Policy (UIN : 111N093V01)

SBI Life - Flexi Smart Plus Policy (UIN : 111N093V01)

Insurance Company
SBI Life (Promoted by State Bank of India)
Plan Name
Flexi Smart Plus
Type
Variable Insurance, Participating Plan





Life Assured
Minimum age at the time of applying for the plan
18 years old
Maximum age at the time of applying for the plan
60 years as on last birthday
Maximum Age at end of plan term
65 years as on last birthday
Plan Term
5 to 30 Years
Premium Payment
Regular Premium Only (Monthly / Quarterly/ Half Yearly / Yearly)

Premium Requirement
Mode of Premium
Minimum Premium
Maximum Premium
Monthly
Rs 9000
No Limit
Quarterly
Rs 20000
Half Yearly
Rs 30000
Yearly
Rs 50000






Sum Assured is the minimum Death Benefit payable to the nominee incase of life assured’s demise. Sum assured is based on the following
1. Annual Premium
2. Age of the Life Assured


Death Benefit:

Gold Option
Platinum Option
Higher of
Policy Account Value or
Sum Assured or
105% of Total Premium Paid,
Higher of
[Policy Account Value + Sum Assured] or
105% of Total Premium Paid,

How the Plan Works

Step 1: Customer Pays the premium

Step 2: Charges are deducted
§  Policy Administration Charge
§  Fund Management Charge
§  Discontinuous Charges
§  Premium Allocation Charges
§  Partial Withdrawal Charges as applicable
§  Mortality Charges

Step 3: Addition to the Plan
§  1% of the Account value is added to the account at the end of every year.
§  Non Zero Positive Bonus Rate will be credited to the account at the end of every year
§  Terminal Bonus at the time of maturity / policy exit
§  A non zero positive addition from year 5 to meet the reduction in yield

Charges
1. Policy Administration Charges
Year
Charge
1
Rs 70 per month
2
Rs 50 per month
3 and above
Charge would increase by 3% per annum subject to a maximum of Rs 200

2. Fund Management Charge
Fund
Charge
Policy Account
0.75%
Discontinuous Fund
0.50%

3. Discontinuous Fund
Policy Discontinued in year
Charge
1
Lower of 6% of (Annual Premium or Fund Value subject to a maximum of Rs 6000
2
Lower of 4% of (Annual Premium or Fund Value subject to a maximum of Rs 5000
3
Lower of 3% of (Annual Premium or Fund Value subject to a maximum of Rs 4000
4
Lower of 2% of (Annual Premium or Fund Value subject to a maximum of Rs 2000
5 onwards
Nill

4. Premium Allocation Charge
Policy Year
Charge
Year 1
9.00%
Year 2-4
6.50%
Year 5
6.00%
Year 6 onwards
5.00%

5. Partial Withdrawal Charges
First partial withdrawal is free of charge, subsequent withdrawal are charged @ Rs 100

6. Mortality Charges
As per sum at risk

Frequent Ask Questions: SBI Life Flexi Smart Plus

1. What is variable linked insurance plans?
Variable linked insurance plans are those plans where a given amount of charges are deducted on a regular basis and regular additions are made to the account. It is similar to the ULIP framework, the only difference is investment returns are guaranteed.

2. How money is deducted from the premium I pay?
Under this plan, there are 4 deductions from the premium you pay. Allocation Charge, Policy Administration Charge, Mortality Charge and Fund Management Charge. The charges are mentioned above for your reference.

3. What is my Policy Account Value?
Policy Account Value is the amount of money left in your account. It changes every day.
PAV = Premium you pay + Guaranteed Return added + Additional Return – Charges

4. Why should I opt for Gold Option when Platinum Option provides more death benefit?
Correct, but the Mortality Charge in the Platinum Option will be more than the Gold Option and hence it will have lower maturity value.

If you have any further questions feel free to comment or mail me at "insurance.prashant(a)gmail(.)com" 
You can also refer to the Glossary Section for more details on Technical Terms