SBI Life Smart Humsafar Plan : Life insurance is an integral part of every family, regardless of whether you are single or married. And if you are married, you have the added responsibility of taking care of your spouse’s needs and future needs and dreams too. And here comes an insurance plan that can give you peace of mind with coverage of both insurance as well as savings.
SBI Life Smart Humsafar Life Insurance Plan has the dual benefits of providing life coverage along with savings under one umbrella. SBI Life, as we all know, is a pioneer in the life insurance industry in India. With a wide variety of life insurance products at affordable rates, SBI Life has become an essential necessity in the life of every Indian citizen.
SBI Life Smart Humsafar Plan
Smart Humsafar is an endowment plan where the policyholder can cover his/her spouse under the same plan. It offers some interesting benefits to the policyholder which include things like waiver of premium in case of death of the insured and payment of sum assured in such case.
It can provide life insurance cover amounting up to Rs 5 crore and offers both death and maturity benefits. There are also bonuses that can be paid into this policy which include a terminal and a reversionary bonus.
These are joint participating insurance plans or for married couples. The endowment plan provides insurance cover to both husband and wife and comes with several rider options. The policy offers a Guaranteed Minimum Bonus at 2.50% of the Sum Assured for the first 3 years.
SBI Life Smart Humsafar Plan Details
This is a combined plan that includes both life insurance coverage and savings where the policyholder can get insurance cover for both himself and his family under the ambit of this single policy. This plan provides financial protection in case of the unfortunate death of one or both of the insured individuals.
Key Features of SBI Life Smart Humsafar Plan
It is a traditional Joint Life Endowment Insurance Plan which earns simple reversionary bonus and covers a married couple.
Although the bonus depends on the performance of the company, the plan promises to add a minimum bonus of 2.50% of the Sum Assured in the first 3 years.
Maturity benefit is paid if one or both survive to maturity and death benefit is paid if one or both die during the life plan term.
An inbuilt premium waiver rider that waives future premiums in the event of death during the plan term.
Benefits of SBI Life Smart Humsafar Plan
- The premiums paid for this policy and the returns received from it are eligible for tax benefits under Section 80C and 10(10D) of the IT Act.
- Once the policy attains a surrender value, policyholders can take a loan up to 90% of the surrender value of the policy.
- A discount of Rs 2 per Rs 1,000 of sum assured is available for policies with sum assured between Rs 3 lakh and Rs 5 lakh.
- For sum assured above Rs 5 lakh, there is a rebate on premium of Rs 3 for every Rs 1,000 of sum assured.
Exclusions – What is not included in the SBI Life Smart Humsafar Plan?
Suicide: If the SBI Life – Smart Humsafar policyholder commits suicide due to any reason within one year of inception of the policy, the following will occur:
If the policyholder dies within one year from the date of commencement of the policy: The nominee gets 80% of all premiums paid.
If the policyholder dies within one year from the policy reinstatement date: The nominee receives 80% of all premiums paid plus service tax or the surrender value on the date of death, whichever is higher.
Other key features of SBI Smart Humsafar Plan – Freelook period, surrender value, grace period
Other key features of SBI Life Smart Humsafar Plan are:
- Free Look Period: After receiving the policy document, you have 15 days to review the terms and conditions of the policy. If you find the terms and conditions objectionable then you can return the policy and claim a refund. The refund amount will be paid after making some deductions. For policies bought through remote marketing, you have 30 days to review the terms and conditions.
- Grace period: In case you fail to pay the premium within the due date, you are given a grace period of 30 days to pay the premium without interest. If the premium is not paid within the grace period, the policy will terminate.
- Revival: The policy can be revived within 2 years from the date of closing. The closed policy fund will be liquidated and the closure charges will be refunded. The resulting funds will be reallocated to the previously chosen investment fund.
- Loan: This policy allows policyholders to avail a policy loan for any financial emergency when the policy reaches the surrender value.
- Surrender: If the policy is surrendered any time before completion of 5th policy year, the fund value will be transferred to the closed policy fund after deducting closure charges. The fund will earn a minimum guaranteed interest rate of 4% p.a. Fund management charges of the closed policy fund will be deducted. No life insurance payable. Fund value will be paid on the first working day of the sixth year of the policy. The policy will be closed after payment of the fund value. If the policy is surrendered after completion of the 5th policy year, the fund value will be paid immediately.
Additional benefits of SBI Life Smart Humsafar plan
- Riders: SBI Life Accidental Death Benefit (ADB) rider can be availed on one life or both the lives at a very low premium. The minimum rider sum assured available is Rs. 25,000 and maximum is Rs. 50 lakhs. If both the partners have taken the rider, the rider benefit will be payable when both of them die together in an accident, die at different times due to the same accident or die at different times due to different accidents. Let’s go.
- Premium Rebate: If higher sum assured is chosen, the company offers premium rebate. This rebate is allowed per thousand sum assured for sum assured exceeding Rs.3 lakh. For sum assured of Rs 3 lakh to Rs 5 lakh, the rebate applicable is Rs 2 and for sum assured of Rs 5 lakh and above, the rebate applicable is Rs 3.
- Grace Period: A grace period of 30 days is allowed for payment of premium after the due date for yearly, half-yearly or quarterly modes of premium payment. For monthly mode, the grace period period is 15 days. Life cover under the policy will continue throughout the grace period.
- Free Look Period: After the policy is issued, a cooling off period or free look period of 15 days is given to the policyholder to review the terms and conditions of the policy. If found unsatisfactory, the plan can be canceled within this period and the premium paid will be refunded after paying the relevant death charges, service tax, cess and stamp duty.
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SBI Life Smart Humsafar Plan FAQS
What is the length of the free-look period in SBI Life Smart Humsafar Plan?
For policies obtained through any channel mode other than distance marketing, the free-look period applies to 15 days (of receipt of the policy). In case of policies obtained through remote marketing, the free-look period is 30 days.
Is loan facility available under SBI Life Smart Humsafar Plan?
Yes, loan can be taken after attaining the surrender value of the policy. Policy loan is restricted to a maximum of 90% of the surrender value.
What are the tax benefits of SBI Life Smart Humsafar?
Tax deduction can be claimed under section 80C of the Income Tax Act, 1961 for the premiums paid towards the policy. The income received from SBI Life – Smart Humsafar is tax-free in the hands of the recipient under Section 10(10D) of the Income Tax Act.