SBI Life Smart Privilege Plan

This plan offers a range of benefits designed to maximise the returns on your invested amount over time. To learn more about SBI life insurance UAE, including features, benefits, eligibility, and more, let’s proceed with this guide.

Key Features of the SBI Life Smart Privilege Plan

SBI life smart privilege plan in UAE is designed to give you both protection and investment growth. Here are the main highlights —

How Does the SBI Life Smart Privilege Plan Work? 

Here is how the plan works in simple steps: 

• Choose the Policy Term: Select a term for which you want to be covered
• Decide Premium and Payment Mode: Choose a premium amount from your preferred payment mode, this can include regular, limited, or single premium payment options
• Select Fund Allocation: Among various available funds, invest in one or multiple funds that suit you best
• Fund Investment: After the deduction of applicable taxes and charges, the remaining amount gets invested into the selected fund

✍️The price of the units of the selected fund is the main determinant of unit allocation, and keep in mind that the invested amount grows based on market performance

Benefits of the SBI Life Smart Privilege Plan

The SBI Life insurance plan benefits are mentioned below: 

Death Benefit

In case of death during the policy term, the nominee will receive the higher of the following amounts:

• Fund value at the time of death
• Sum Assured minus applicable partial withdrawals (if any)
• 105% of total premiums paid, reducing applicable partial withdrawals
• The nominee can choose lump sum or installment payouts over 2-5 years

Maturity Benefit

On survival till maturity, the fund value is paid as a lump sum to the policyholder.

Loyalty Additions

SBI Life Smart Privilege rewards long-term policyholders with Loyalty Additions, which enhance the fund value over time. Here’s how it works:

• Eligibility & Timing

  • Loyalty Additions begin from the end of the 6th policy year.

  • They are credited at regular intervals (6th, 10th, 15th, 20th, 25th, 30th year) till the end of the policy term, provided the policy is in force.

• Calculation Method

  • Loyalty Additions are calculated as a percentage of the average fund value.

  • The fund value is averaged over the 1st day of the last 12 policy months before the allocation date.

• Unitisation Process

  • Once calculated, the loyalty additions are unitised and added to your fund value.

  • The unit price on the day of allocation is used for crediting.

• Revival Clause

  • If a policy has lapsed but is later revived (with all due premiums paid), the loyalty additions will be credited on the date of revival.

• Exclusions

  • Reduced Paid-Up Policies do not qualify for loyalty additions.

• Percentage of loyalty additions is provided in the table:

Free Fund Switching

Unlimited fund switches without any charges are available throughout the policy tenure. You can switch your investment, a minimum of Rs. 5000, among 11 diverse funds. 

Partial Withdrawals

This distinctive facility is available after 5 years or when the policyholder turns 18 years old. However, you are allowed a maximum of 4 withdrawals per year with a limit of ₹5,000, or a maximum of 15% of the fund value. Not more than 10 withdrawals are allowed during the entire term (if policy term is less than or equal to 10) and maximum of 15 withdrawals if policy term is more than 10 years.

• Extra Withdrawals: Beyond the free limit, a charge of ₹100 per withdrawal applies (no carry-forward of unused free withdrawals).
• Restriction: Not allowed if the fund value after withdrawal drops below 50% of total premiums paid.

Premium Redirection

You can avail yourself of this facility from 1 policy year onwards, and with this, you are allowed unlimited free premium redirections throughout the policy duration. 

Free Look Period 

It’s another SBI Life Smart Privilege plan benefit, which means if you don’t like the plan, you can terminate it and get the amount back. Under this plan, the free look period is 15 to 30 days.* 

*15 days if the policy is purchased electronically or through distance marketing; 30 days if the policy is obtained through distance marketing mod

Additional Features of SBI Life Smart Privilege Plan

Tax Benefits

• You may be eligible for income tax exemptions/deductions as per applicable laws.
• Tax rules are subject to change; consult a tax advisor for up-to-date guidance.

Free Look Period 

It’s another SBI Life Smart Privilege plan benefit, which means if you don’t like the plan, you can terminate it and get the amount back. Under this plan, the free look period is 15 to 30 days.* 

• 15 days (for offline policies) or 30 days (for distance marketing/e-policies).
• If you’re not satisfied, you can return the policy and get a refund as per the standard formula:
  Refund = Fund Value + (Allocation Charges + Mortality Charges + Taxes deducted) – (Mortality Charges + Taxes for covered period + Stamp Duty + Medical Expenses, if any).
• Units will be liquidated at NAV depending on whether the request is received before or after 3 pm.

Grace Period

• 30 days for yearly/half-yearly/quarterly modes
• 15 days for monthly mode

Discontinuance of Policy

If discontinued within the first 5 years:

• Fund value (after charges) is moved to Discontinued Policy Fund
• Risk cover ceases
• Proceeds are payable on the 1st working day of the 6th policy year

If discontinued after 5 years:

• Policy converts to reduced paid-up status
• Paid-up sum assured = Original sum assured × (Number of premiums paid ÷ Total premiums payable)

Policyholder options:

• Revive within 3 years
• Withdraw completely at any time

Revival of Policy

• Revival is allowed within 3 years from the date of first unpaid premium.
• Requires payment of all due premiums and subject to underwriting.
• On revival, charges are restored and risk cover resumes.

Charges Under the Plan

• Premium Allocation Charges:
  • Single Premium – 2%
  • Limited/Regular Premium – as per chosen plan
• Policy Administration Charge: Nil (capped at ₹500/month if revised with IRDAI approval).
• Fund Management Charges (FMC):
  • Policy years 1–5: 2.5%
  • 6th year onwards: Nil

Surrender Rules

• Before 5 years:
  • Fund value (minus charges) is transferred to Discontinued Policy Fund.
  • Minimum guaranteed return of 4% p.a. (or as per IRDAI rules).
  • Payout after lock-in (1st working day of 6th policy year).
• After 5 years:
  • Full fund value is payable immediately.
  • Once surrendered, policy cannot be revived.

SBI Life Smart Privilege Plan—Eligibility Criteria

You must meet the following eligibility criteria for the SBI Life Smart Privilege plan:

Fund Options in SBI Life Smart Privilege Plan

With SBI Life Smart Privilege Plan, you can invest in the following funds that are listed below: 

Fund Management Charges (FMC) for SBI Life Smart Privilege

Below are the charges applied annually on different funds under this ULIP plan —

Required Documents for SBI Life Smart Privilege Plan

You need to submit the following documents while buying the SBI Life Smart Privilege plan: 

• Identity proof, such as your passport 
• Age proof
• Residence proof
• Medical reports (might be optional)

✍️Note: Additional documents may also be required while buying this plan.

Frequently Asked Questions