Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

SBI Life Smart power insurance plan is a non participating unit linked insurance plan. Non participating policy is that where policy does not participate in the profits of the life insurer and thus does not receive any bonus. Unlike Traditional participating plans the benefits and features of this kind of policy is clearly defined. Besides the regular and common features of ULIPs, the USP of SBI Life Smart Power Insurance Plan is the option of "increasing Sum assured" and Trigger benefit in Investment funds.

 

Let's understand the policy in detail.

 

SBI Life Smart Power Insurance Plan is a Unit linked insurance Plan. Like all other ULIPs it is also having a Minimum Lockin period of 5 years. Thus you cannot surrender or withdraw the funds before 5 years. The Sum assured you get is the multiple of Annual Premium you decide to pay. The maximum sum assured can never go beyond Rs 1 crore. This policy has one unique feature of increasing sum assured which says that the Sum assured will get increased by 10% every 5 years after the 6^th year of policy term. The Premium you pay gets invested into Equity & debt (after deduction of allocation charges) as per the option you chose. Among other regular funds available under "Smart fund option", there's another unique option available to investor which is called "Trigger fund". This option will do the automatic rebalancing of the allocation in equity and debt after every 15% up and down of equity portfolio. SBI call it a "Buy low and Sell High" strategy.

On Maturity you will get the fund value or on death your nominees will get higher of the fund value or sum assured, subject to minimum of 105% of total Basic premium paid till the time of death.

SBI Life Smart Power Insurance Plan – Key Features

 

	Features		Details
Entry age		Minimum 18 years, Maximum 45 years
Age at maturity		65 years (Maximum)
Policy term		10, 15 to 30 years
Premium Paying Term		Same as Policy Term
Sum assured		Minimum- Higher of 10 times annual premium or (0.50*annual Premium*term)Maximum : 20 times annual premium

 

SBI Life Smart Power Insurance Plan – Unique Features

There are 2 different/unique features in SBI Life Smart Power Insurance Plan.

Increasing sum assured – Unlike the Level cover option where sum assured remain the same throughout the policy term, this increasing sum assured option if opted will automatically increase the initial sum assured by 10% every 5 years starting from 6^th year. Do note that Mortality charges will also get increased with the increase in sum assured.

Trigger Fund option - This option is available along with the other regular investment funds option. In this fund your premium amount (net of charges) will be invested 80% in equity and 20% in debt. On every 15 % rise or fall in the NAV of the equity fund the portfolio will be rebalanced at 80:20 level. Thus this trigger point will lead to redistribution of surplus or shortage generated in the funds. This way if NAV rises by 15% then automatically there will be a profit booking from equity funds and when NAV falls by 15% there'll be automatically purchase at this level by selling bond fund units.

SBI Life Smart Power Insurance Plan – Charges

Premium allocation charges:

	Policy Year		Premium Allocation Charge (% of Premium)
Year 1		5.75%
Years 2-5		4.00%
Years 6-7		3.50%
Year 8		2.50%
Year 9		2.00%
Year 10 onwards		1.50%

 

Policy administration charge: Rs 33.33 per month

Fund management Charges: Maximum upto 1.35%

Should you invest in SBI Life Smart Power Insurance Plan? From Insurance view point it is not difficult to understand ULIPs and SBI Life Smart Power Insurance Plan is also not different. Problem with ULIPs lies in the investment angle. When there are other low cost, transparent, flexible and structured investment options available, then why should anyone get into such insurance cum investment plans where we don't know the fund managers, the investment process, fund structure, compulsory payments with high costs. It is very much visible that ULIPs or any Investment cum insurance plan is meant for those investors which are not disciplined in their savings. Such plans results into compulsory payments, and high charges are the costs that they have to pay to be in discipline, otherwise investors will be punished again with some heavy discontinuation charges. So as always view still remain the same, Buy term insurance for your insurance needs and invest in different flexible instruments as per your risk profile and goals targeted

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online