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SBI Life eWealth Insurance Plan-ULIP Review : Is it Good or Bad?

SBI Life eWealth Insurance Plan-ULIP Review (2023): Is it Good or Bad?

by Holistic Leave a Comment | Filed Under: Insurance

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Table of Content:

1.) Introduction

2.) What is SBI Life eWealth Insurance Plan?

3.) Plan Options in SBI Life eWealth Insurance plan

  • Growth plan
  • Balanced Plan

4.) Fund Details of SBI Life eWealth Insurance Plan

5.) Features of SBI Life eWealth Insurance Plan

6.) Benefits of SBI Life eWealth Insurance Plan

  • Death Benefit
  • Maturity Benefit

7.) Who is eligible for the SBI Life eWealth Insurance plan?

8.) Charges of SBI Life eWealth Insurance Plan

  • Premium Allocation Charge
  • Policy Administration Charge
  • Fund Management Charges
  • Discontinuance Charge
  • Partial Withdrawal Charge
  • Mortality Charge
  • Medical expenses on revival

9.) Research Methodology of SBI Life eWealth Insurance Plan

10.) SBI Life eWealth Insurance Plan: Example with Illustration

11.) IRR of SBI Life eWealth Insurance Plan

12.) The SBI Life eWealth Insurance Plan vs. PPF + Term Insurance

13.) SBI Life eWealth Insurance Plan vs. ELSS + Term Insurance

14.) Advantages of SBI Life eWealth Insurance Plan

15.) Disadvantages of SBI Life eWealth Insurance Plan

16.) Surrender/Cancel during the free look period

17.) Surrender/Cancel during the lock-in period

18.) Surrender/Cancel after the lock-in period

19.) Final Verdict of SBI Life eWealth Insurance Plan

Introduction:

The SBI Life eWealth Insurance plan is a ULIP that promises to enhance your wealth in a simple manner.

It gives us life protection and the freedom to manage investments.

Apart from insurance cum investment combination, it claims to offer security, affordability, flexibility, simplicity, and liquidity.

Even though the SBI Life eWealth Insurance plan seems to be a genuine investment option, do you think it can help you create long-term wealth?

Here is the review of the SBI Life eWealth Insurance plan, which can help you to decide whether it is suitable for your investment portfolio or not.

What is SBI Life eWealth Insurance Plan?

SBI Life eWealth Insurance Plan is a ULIP that offers twin benefits of insurance coverage and investment. It offers market-linked returns and AAA (Automatic Asset Allocation) feature. 

As the Policy Term advances, the Automatic Asset Allocation function reduces equity allocations while increasing debt/money market instrument allocations. The units are allotted based on the unit price for the funds. The Fund Value is the total value of units held in all Unit-linked Funds.

There are two options available under the SBI Life eWealth Insurance Plan. 

  • Growth Plan
  • Balanced Plan

Plan Options in SBI Life eWealth Insurance plan:

Growth plan:

Balanced Plan:

Fund Details of SBI Life eWealth Insurance Plan:

Features of SBI Life eWealth Insurance Plan:

  • It gives life coverage and market-related returns.
  • Worry-free investment through Automatic Asset Allocation.
  • Based on your risk profile, you can choose between a Growth plan and Balanced Plan.
  • Premium starts from Rs. 2, 000 onwards.
  • There is no premium allocation charge. So, it can help you to increase your fund value.
  • There is no liquidity till the end of the lock-in period of five years.
  • Tax benefits.

Benefits of SBI Life eWealth Insurance Plan:

Death Benefit:

If the policyholder died in an unfortunate event, then the nominee or the legal heir will get the highest of the following as death benefit.

  • The fund value
  • Sum assured exclude the partial withdrawal if any
  • 105% of the premium paid

Maturity Benefit:

At the end of the policy term, the policyholder will get the fund value as lumpsum.

Who is eligible for the SBI Life eWealth Insurance plan?

Charges of SBI Life eWealth Insurance Plan:

Premium Allocation Charge:

There is no Premium Allocation Charge in the SBI Life eWealth Insurance plan.

Policy Administration Charge:

Rs. 45 will be deducted every month till the end of the policy term.

Fund Management Charges:

This charge will be deducted from the relevant fund before calculating NAV daily. This charge will be a fixed percentage of the fund.

Discontinuance Charge:

A fixed percentage will be deducted from your annual premium or fund value.

Partial Withdrawal Charge:

Every policy year, you can avail of one free partial withdrawal after the lock-in period. But, if you want to withdraw more than one time in the same policy year, then you have to pay Rs. 100 for every partial withdrawal.

 Mortality Charge:

It will be deducted on the first day of every policy month from the fund value.

Medical expenses on revival:

If there are any medical expenses, they will be borne by the policyholder.

Research Methodology of SBI Life eWealth Insurance Plan:

Till now, we have come across all the important details of the SBI Life eWealth Insurance plan. These details can help us to draw an outlook of the SBI Life eWealth Insurance plan. But, they did not help us to decide whether we have this insurance plan in our investment portfolio or not. So, now, let’s see how this plan works and compare it to other investments, whether it can help us to achieve our financial goals or not.

SBI Life eWealth Insurance Plan: Example with Illustration:

IRR of SBI Life eWealth Insurance Plan:

Now, let’s calculate the IRR of the SBI Life eWealth Insurance plan, by using the online return calculator provided by them.

Here let’s take,

Annual contribution: Rs. 1, 00, 000

Policy Term: 20 years

In the worst-case scenario, let’s take the assumed gross return as 4%.

Then, 

As you can see in the above return calculator illustration, in the worst-case scenario, the SBI Life eWealth Insurance plan gives us an IRR of 2.54%. At the end of the policy term, it gives us a maturity benefit of Rs. 26, 28, 874 and in an unfortunate death, the nominee will get the death benefit of Rs. 10, 00, 000.

Now, let’s see the IRR for the best-case scenario.

Here let’s take the assumed gross return as 8%.

Then, 

As you can see in the above illustration, in the best-case scenario, the SBI Life eWealth Insurance plan gives us an IRR of 6.48%. At the end of the policy term, it gives us Rs. 41, 23, 248 as Maturity Benefit. If the policyholder passes away in an unfortunate event, then the nominee will get Rs. 10, 00, 000 as a death benefit.

Here for 20 years, it creates an illusion that makes you think that it gives you a double return. But, here you must remember one thing. This SBI Life eWealth Insurance plan is a ULIP which means it has risk in its portfolio.

So, after taking a risk, it gives you a return that is lower than risk-free investments.

Let me explain.

Now, let’s take PPF as a risk-free investment and compare it with SBI Life eWealth Insurance Plan.

The SBI Life eWealth Insurance Plan vs. PPF + Term Insurance:

Let’s take the annual contribution as Rs. 1, 00, 000

Annual Premium for Term Insurance: Rs. 5, 500

Tenure: 20 years

Sum Assured: Rs. 1, 00, 00, 000

Investment in PPF: Rs. 94, 500

Investment return: 7.10% without risk

So, here PPF gives us an IRR of 6.62%. This is higher than the SBI Life eWealth Insurance plan without taking a risk. After 20 years, it gives us Rs. 41, 94, 722 as investment return.

Now, let’s compare the SBI Life eWealth Insurance plan with other investment that has risk in its portfolio.

SBI Life eWealth Insurance Plan vs. ELSS + Term Insurance:

Let’s take the annual contribution as Rs. 1, 00, 000

Annual Premium for Term Insurance: Rs. 5, 500

Tenure: 20 years

Sum Assured: Rs. 1, 00, 00, 000

Investment in PPF: Rs. 94, 500

The assumed rate of return: 12% with risk

As you can see in the above illustration, compare to the SBI Life eWealth Insurance plan, ELSS gives us an IRR of 10.93% after taking the risk.

At the end of the 20 years, it gives us Rs. 70, 62, 427 as investment return.

Advantages of SBI Life eWealth Insurance Plan:

  • This SBI Life eWealth Insurance plan does not offer bonuses but instead provides market-linked returns.
  • The SBI Life eWealth Insurance plan includes Automatic Asset Allocation, which manages the policy holder’s investments automatically to optimize profits.
  • Partial withdrawals are permitted from the 6th policy year onwards.
  • The minimum partial withdrawal amount is Rs. 5,000, and the maximum is 15% of the Fund Value as of the withdrawal request date.
  • There are no premium allocation charges, which increases the value of your fund. 
  • The Automatic Asset Allocation (AAA) function minimizes equity exposure as it approaches maturity, so helping to safeguard gains created by market volatility in later years.
  • Affordability – with monthly premiums beginning at Rs. 2000

Disadvantages of SBI Life eWealth Insurance Plan:

  • Option (Growth or Balanced) selected at policy initiation cannot be modified later during the policy duration.
  • Partial withdrawals are not permitted if the Fund Value is decreased to less than 50% of the total premiums paid as a result of the withdrawal.
  • During the first five years of the policy term, the Unit Linked Insurance Products do not provide any liquidity.
  • Policyholders will not be able to renounce or withdraw funds invested in Unit Linked Insurance Products in full or in part until the end of the fifth year.
  • The SBI Life eWealth plan advertises the dual benefits of life insurance coverage and wealth creation, yet neither is completely useful.
  • The product does not permit top-up premiums.

Now, let’s see how to surrender/cancel the SBI Life eWealth Insurance Plan.

Surrender/Cancel during the free look period:

If you are not satisfied with the terms and conditions of the SBI Life eWealth Insurance plan, then you can return the policy by stating your reason during the free look period. You will be refunded after deducting the charges.

This free look period is 30 days from the date of purchasing the policy.

For more details, you can read the SBI Life eWealth Insurance Plan brochure here!

Surrender/Cancel during the lock-in period:

If you want to surrender the policy during the lock-in period, then you will get a 4% interest rate per annum as per the regulations.

The fund value will be payable on the 1st day of the 6th policy term, after deducting the charges.

Surrender/Cancel after the lock-in period:

You will be refunded the fund value immediately after deducting the relevant charges.

Final Verdict of SBI Life eWealth Insurance Plan:

“Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.”

The SBI Life eWealth Insurance plan is creating an illusion that seems to be increasing your wealth. But, in reality, it is not.

On the investment side, after taking the risk, this SBI Life eWealth Insurance plan gives us a return that is lower than risk-free investments. On the other hand on the insurance side, it also provides less life coverage compare to pure term insurance. So, after analyzing all the factors, it is not worth investing your money in SBI Life eWealth Insurance Plan for the long term.

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘Register Now!’ button below. 

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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