SBI Life Smart Champ Insurance is an individual non-linked, participating life insurance plan which helps in securing your child’s educational needs.
The key features of this plan are:
Education Expenses - Guaranteed smart benefits are paid in four equal installments when the child attains the age of 18 till he/she reaches 21 years, i.e. at the end of each of the last four policy years.
Immediate Payment - In case of death of the policyholder, the sum assured on insured event is paid as a lump sum.
Waiver of Due Premium - In case of death of the policyholder, all future premium installments will be waived off by the insurer and the policy will continue to exist and accrue bonuses, if applicable.
Smart Benefit - Terminal bonus, if any, will be paid.
The key benefits of this plan are:
Death Benefits - In case of death of the policyholder, the following death benefit is paid to the family.
For SP Policy: The amount of benefit is the sum assured, where sum assured is higher of basic sum assured or a multiple of single premium; where the multiple is:
| Policy Term | Age at entry of Life Assured less than 45 years | Age at entry of Life Assured 45 years or more |
|---|---|---|
| All terms | 1.25 | 1.10 |
| Policy Term | Age at entry of Life Assured less than 45 years | Age at entry of Life Assured 45 years or more |
|---|---|---|
| 8 and 9 years | 5 | 5 |
| 10 years or more | 10 | 7 |
| 10 years or more | Smart Benefits |
|---|---|
| Smart Benefits | 25 % of Sum Assured + 25% of Vested Simple Reversionary Bonus |
| 19 years | 25 % of Sum Assured + 25% of Vested Simple Reversionary Bonus |
| 20 years | 25 % of Sum Assured + 25% of Vested Simple Reversionary Bonus |
The eligibility criteria for this plan is:
| parameter | terms |
|---|---|
| Age at Entry | Life Assured: Min - 21 year and Max - 50 years Child: Min - 0 years and Max 13 years |
| Maximum Age at Maturity | Life Assured - 70 years Child - 21 years |
| Basic Sum Assured | Min - Rs. 1,00,000 (x Rs. 1,000) Max - Rs. 1 Cr |
| Policy Term | 21 minus Child’s age at entry Min - 8 years and Max - 21 years |
| Premium Payment Term | 18 minus Child’s age at entry Min - 5 years and Max - 18 years |
| Premium Frequency | SP/Yearly/Half-Yearly/Quarterly/Monthly |
| Premium Amount | Monthly - Rs. 500 Quarterly - Rs. 1,500 Half-Yearly - Rs. 3,000 Yearly - Rs. 6,000 Annual - Rs. 66,000 |
You can invest in an SBI child education plan by visiting any of the bank branches nearest to your residence and request to apply for a child education plan.
The documents required for SBI Child Education Plan are:
Paid-up Value - The policy will acquire a paid-up value post payment of at least two year’s premium when the premium paying term is 10 years or more. In case of death of the policyholder, the paid-up sum assured is paid to the family.
Surrender Value - The policy will acquire a surrender value only if the premiums have been paid for at least two full years for PPT less than 10 years and at least 3 full years for PPT 10 years or more.
Grace Period - The policy offers a 30 days grace period from the premium due date for yearly/half yearly/quarterly premium frequency and 15 days for monthly premium frequency. A lapsed policy can be revived within 2 years from the date of the first unpaid premium.
Free-Look Period – The policy comes with a free look period of 15 days from the date of receipt of policy. For policies sourced through any channel other than distance marketing, the free look period is 30 days.
Loan Facility - This feature allows you to borrow a loan against your policy before last three policy years. The policy loan amount will be limited to a maximum of 90% of the surrender value.
Rebates - Large sum assured rebates are available as discounts on the tabular premium based on the following slabs:
| Basic Sum Assured | (Rebate per Rs. 1000/- Basic Sum Assured) | |
| LPPT Policies | SP Policies | |
| Rs. 1 lakh to Rs. 2 lakhs | NIL | NIL |
| Rs. 2 lakhs to Rs. 3 lakhs | Rs. 3.00 | Rs. 6.50 |
| Rs. 3 lakhs to Rs. 5 lakhs | Rs. 4.50 | Rs. 9.50 |
| Greater than Rs. 5 lakhs | Rs. 5.50 | Rs. 11.00 |
Getting the best quality education for your child is quite challenging these days. It is advisable to purchase a child education insurance plan as the policy will take care of your child’s expenses, even in your absence.
The exclusions under this plan are:
Suicide Exclusion - If the life insured commits suicide within one year from the risk commencement date, whether insane or sane at that time, the policy will be void and no death benefit will be payable.
ATPD Benefit - The Accidental Total and Permanent Disability Benefit will not be payable in case of accident arising from the following events:
Infection
