What are the Benefits of SBI Life Saral Insure Wealth Plus?

SBI Life Saral Insure Wealth Plus Death Benefit On the death of the Life Assured, the company will pay the Higher of:  The Fund Value as on the date of intimation of death to the company, or  Sum assured less Applicable Partial Withdrawal (APW), or  105% of the total premiums received up to the date of death less Applicable Partial Withdrawal (APW) . SBI Life Saral Insure Wealth Plus Maturity Benefit At maturity, you will receive fund value calculated at the prevailing NAV on the maturity date, which shall be paid in a lump sum.

What are the Advantages of SBI Life Insure Wealth Plus?

On Death of the life assured, the nominee may choose to get the death benefit payments in installments during the settlement period.  Loyalty Addition starts from the end of the 6th Policy year and on regular intervals till the end of the selected policy term.  From the 11th Policy Year onwards, you can avail of the Systematic Monthly Withdrawal to meet your regular expenses/ to have a fixed monthly payout.  There are no restrictions on the number of switches during a particular policy year or entire policy term.  Free premium redirections from the 2nd policy month onwards.  Partial withdrawal from 6th policy year.

A Comprehensive Review & Analysis on SBI Life Insure Wealth Plus.

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Are you in search of potential investment opportunities to accomplish your Financial Goals?

Could SBI Life Saral Insure Wealth Plus be a suitable investment product?

Will this plan help you to save in a disciplined manner to achieve all your goals?

The path of disciplined investment helps you to reach your destination. It is said that investors who follow a structured investment approach can succeed in the long run.

To assist you in achieving your financial goals, SBI Life presents Saral Insure Wealth Plus. In this article let us conduct detailed research on SBI Life Saral Insure Wealth Plus Advantages (Pros) and Disadvantages (Cons).

The IRR analysis of this Investment Product will help make better investment decisions.

SBI Life Saral Insure Wealth Plus Benefit Illustration – IRR Analysis

13.) SBI Life Saral Insure Wealth Plus VS Other Investment

SBI Life Saral Insure Wealth Plus Vs. Pure Term + PPF / ELSS
SBI Life Saral Insure Wealth Plus VS SBI Life Smart Annuity Plus Plan
SBI Saral Income Wealth Plus VS SBI Saral Swadhan +

14.) Final Verdict on SBI Life Saral Insure Wealth Plus

1.) What is SBI Life Saral Insure Wealth Plus?

SBI Life Saral Insure Wealth Plus is an Individual, Unit Linked, Non-Participating Life Insurance Product.

This is a monthly savings plan which helps you build your savings gradually brick by brick by putting aside money every month, in a disciplined manner.

This mode of savings is a proven way to balance the ups and downs of the market the most effectively.

2.) What are the Features of SBI Life Saral Insure Wealth Plus?

Easy Monthly investment to help achieve your dreams.
Choice of 8 Fund Options.
Systematic Monthly Withdrawal to facilitate regular payouts provided the policy is in force.
Fund Value Boosters through loyalty additions from the end of the 6^th Policy Year.
Option of Partial Withdrawal from 6^th Policy Year.

3.) Who is eligible to invest in SBI Life Saral Insure Wealth Plus?

	Minimum	Maximum
Age at Entry	30 days	55 years
Age# at Maturity	18 years	65 years
Plan type	Regular type
Policy Term	10, 15, 20 and 25 years
Premium Payment Term (PPT)	Same as the policy term
Premium Amount	Rs. 8000	No Limit
Basic Sum Assured	Annualised premium * 10

4.) What are the Benefits under SBI Life Saral Insure Wealth Plus?

SBI Life Saral Insure Wealth Plus Death Benefit

On the death of the Life Assured, the company will pay the

Higher of:

The Fund Value as on the date of intimation of death to the company, or
Sum assured less Applicable Partial Withdrawal (APW), or
105% of the total premiums received up to the date of death less Applicable Partial Withdrawal (APW)

SBI Life Saral Insure Wealth Plus Maturity Benefit

At maturity, you will receive fund value calculated at the prevailing NAV on the maturity date, which shall be paid in a lump sum.

5.) What are the Fund options of SBI Life Saral Insure Wealth Plus?

Based on your risk appetite, you can choose from the 8 fund options given below:

Name of the fund	Equity and Equity Related Instruments	Debt Instruments	Money Market Instruments	Risk Profile
Pure Fund	80-100%	NIL	0-20%	High
Mid-Cap Fund	80-100%	0-20%	0-20%	High
Bond Optimiser Fund	0-25%	0-25%	75-100%	Low to Medium
Balanced Fund	40-60%	0-40%	20-60%	Medium
Equity Optimiser Fund	60-100%	0-40%	0-40%	High
Equity Fund	80-100%	0-20%	0-20%	High
Growth Fund	40-90%	10-60%	0-40%	Medium High
	Corporate Bond	Debt Instruments	Money Market Instruments
Corporate Bond Fund	70-100%	0-30%	0-30%	Low to Medium
		Government Securities	Money Market Instruments
Discontinued Policy Fund		60-100%	0-40%	Low

The asset allocation differs under each of the fund options and it decides the risk profile as well. As an investor, you should choose a fund that matches your personal Risk Appetite.

6.) Various Charges under SBI Life Saral Insure Wealth Plus

i.) Premium Allocation Charge:

These charges vary according to each policy year.

Policy year	Premium Allocation charge
1	8%
2 to 5	5.5%
6 to 10	3.5%
11 to 25	3%

ii.) Policy Administration Charges:

Policy year	Policy Administration Charges
1 to 5	NIL
6 to 25	150 per month

iii.) Fund Management Charges:

Fund Name	Fund Management Charges
Equity Fund	1.35%
Equity Optimizer Fund	1.35%
Growth Fund	1.35%
Balanced Fund	1.25%
Bond Optimiser Fund	1.15%
Corporate Bond Fund	1.15%
Pure Fund	1.35%
Midcap Fund	1.35%
Discontinued Policy Fund	0.50%

iv.) Discontinuance Charges:

A percentage of one Annualized Premium or Fund Value will be deducted as Discontinuance Charge. It depends on the year of discontinuance and the premium amount.

v.) Mortality Charges:

On the first working day of every policy month, the mortality charges are deducted. It depends on your age and the Sum at Risk.

vi.) Switching Charges:

Unlimited free switches are available under this product. A flat Rs.500 rupees would be charged per switch.

vii.) Premium Redirection Charges:

No restriction on the total number of Premium Re-Directions. The Premium re-direction costs ₹ 500 per transaction.

viii.) Partial Withdrawal Charges:

A charge of ₹ 100 is applicable for every partial withdrawal over one free partial withdrawal per policy year during 6-10 policy years.

Inference from these charges: From an investor’s perspective, he expects that the product should pay off in terms of returns for the risk taken.

SBI Life Saral Insure Wealth Plus has a high-risk profile but these charges pull down the expected return. In other market-related instruments, you get better risk-adjusted returns.

7.) SBI Life Saral Insure Wealth Plus Grace period, Discontinuance and Revival

i.) Grace Period

Grace Period of 15 days starting from the due date for premium payment.

ii.) Discontinuance of Policy

If the policy is discontinued during the first 5 policy years: the fund value after deducting the applicable discontinuance charges, shall be credited to the discontinued policy fund and the risk cover shall cease.

The policyholder has an option to revive or surrender the policy. The proceeds of the discontinued policy shall be payable at the end of the lock-in period or date of surrender whichever is later.

If the policy is discontinued after the first 5 policy years: the policy will be converted into a reduced paid-up policy.

The Paid-up sum assured is the original sum assured multiplied by the total number of premiums paid by the original number of premiums payable.

iii.) Revival

The SBI Life Saral Insure Wealth Plus offers a revival period of 3 years from the date of the first unpaid premium, during which you can revive your policy, by paying all due premiums. No interest rate will be charged for it.

8.) SBI Life Saral Insure Wealth Plus Free Look Period

If you are unsatisfied with any of the policy terms and conditions, then you have the option to return the policy, within 15 days.

It is applicable for policies purchased through channels other than Direct Marketing and for electronic policies (30 days for policies sold through distance marketing and electronic policies), from the day when the policy document is received.

For better reference, you can go through SBI Life Insure Wealth Plus Policy Brochure

9.) Surrendering SBI Life Saral Insure Wealth Plus

If you surrender in the first 5 policy years, then – Your Fund Value in this case would be the net of applicable discontinuance charges (if any) that will be transferred to the Discontinued Policy Fund.

The Fund Value will be payable on any 1 working day of the 6^th policy year and the policy will terminate.

If you surrender after the completion of the first 5 policy years, the fund value is payable immediately and the policy will terminate.

10.) Advantages of SBI Life Saral Insure Wealth Plus

On Death of the life assured, the nominee may choose to get the death benefit payments in installments during the settlement period.

Loyalty Addition starts from the end of the 6^th Policy year and on regular intervals till the end of the selected policy term.

From the 11^th Policy Year onwards, you can avail of the Systematic Monthly Withdrawal to meet your regular expenses/ to have a fixed monthly payout.

There are no restrictions on the number of switches during a particular policy year or entire policy term.

Free premium redirections from the 2^nd policy month onwards.

Partial withdrawal from 6^th policy year.

11.) Disadvantages of SBI Life Saral Insure Wealth Plus

The lock-in period is 5 years.
No loan facility is available.

12.) SBI Life Saral Insure Wealth Plus Research Methodology

SBI Life Saral Insure Wealth Plus allows you to invest monthly making it a pocket-friendly investment.

Now, let us analyse whether this pocket-friendly investment helps to amass wealth in the long run. To find out the answer, let us work out the Internal Rate of Return for this plan.

SBI Life Saral Insure Wealth Plus Benefit Illustration – IRR Analysis

A 30-year-old male has taken an SBI Life – Saral Insure Wealth Plus policy for which he is paying a monthly premium of ₹ 10000 (i.e., 1,20,000 p.a.) for a policy term of 15 years with a Sum Assured of ₹ 12 lakh. He has opted for a 100% Equity Fund. Let’s now evaluate the returns under this plan.

Male	30 years
Sum Assured	12 Lakhs
Policy Term	15 years
Premium paying Term	15 years
Premium	10,000
Premium paying Mode	Monthly

At the end of the policy term, he would be receiving the fund value. This benefit illustration assumes a gross return of 8% p.a. and 4% p.a.

These rates, i.e., 8% p.a. and 4% p.a. are assumed rates of returns that are used for Benefit Illustration. It should not be interpreted that the returns under the plan are going to be either 8% p.a. or 4% p.a.

	Amount Invested	Fund Value	IRR
At 4%	18,00,000	20,48,728	1.70%
At 8%	18,00,000	28,02,844	5.65%

At the assumed rate of 4%, the fund value would be ₹ 20.48 Lakhs. The IRR for the 4% scenario is 1.70%. At the assumed rate of 8% scenario, the fund value would be ₹ 28.02 Lakhs. The IRR for the 8% Scenario is 5.65%.

The IRR under both scenarios is less than the inflation rate. So, investing in SBI Life Saral Wealth Insure Plus will not help in wealth accumulation in the long run.

13.) SBI Life Saral Insure Wealth Plus VS Other Investment

The risk and returns are not proportionate under the SBI Life Saral Insure Wealth Plus plan. To get better risk-adjusted returns, let us look for alternate investments.

Under the benefit illustration, the sum assured is ₹ 12 Lakhs. The Policy term and the Premium Paying Term is 15 years (Monthly premium). Let us work out a life cover for the same metric and invest the balance amount for wealth creation.

i) SBI Life Saral Insure Wealth Plus Vs. Pure Term + PPF / ELSS

A life cover for ₹ 12 Lakhs would cost ₹ 450 monthly. So, you would be left with ₹ 9,550 for investment. The investment could be equity or debt based on your risk profile. If you are ready to take risks, you can go for equity or else stick to low-risk debt instruments.

Pure Term Insurance Policy
Sum Assured	12 Lakhs
Policy Term	15 years
Premium paying Term	15 years
Premium	450
Premium paying Mode	Monthly
Investment	9,550

PPF account and ELSS fund are chosen here to demonstrate how each asset class works. The PPF account matures after 15 years. The final maturity value under PPF is ₹ 30.13 Lakhs. You get an IRR of 6.54% under pure term + PPF combo.

Under the ELSS fund, capital gains tax arises at the time of redemption. Tax calculation is given below. The final post-tax value is ₹ 42.72 Lakhs and the IRR works out to be 10.73% (post-tax return).

	Amount Invested	Fund Value	IRR
PPF	18,00,000	30,13,674	6.54%
ELSS (Post-tax)	18,00,000	42,72,530	10.73%

Maturity value after 15 years	45,45,145
Purchase price	17,19,000
Long-Term capital gains	28,26,145
Exemption limit	1,00,000
Taxable LTCG	27,26,145
Tax paid on LTCG	2,72,614
Maturity value after tax	42,72,530

Investing to achieve life goals is very important. And it should yield better returns. The above strategy i.e., taking a pure term policy and investing for life goals helps to achieve it comfortably.

You get better returns in this alternate investment when compared to SBI Life Saral Insure Wealth Plus.

ii) SBI Life Saral Insure Wealth Plus VS SBI Life Smart Annuity Plus Plan

To get a basic understanding of this plan let us quickly glimpse some of the key features in it.

You will receive Guaranteed Lifelong Regular Income.
Eligible to receive annuity benefits at a Compound Interest Rate.
Under certain annuity options, the Return of Purchase Price feature is also available.

If you are eager to know more about the suitability of the plan, and IRR Analysis you can refer to our article on SBI Life Smart Annuity Plus: Good or Bad? A Comprehensive Analysis and Review

iii) SBI Saral Income Wealth Plus VS SBI Saral Swadhan +

Let us look at some of the key attributes to get the gist of how this plan works.

Premiums are based on your age and sum assured.
Policy Term: 10 or 15 Years.
110% or115% of the total premium is paid as Maturity Benefit

To check whether the plan is aligning with your Risk Appetite and Financial Goals. Feel free to take advantage of our In-Depth Analysis of SBI Life Saral Swadhan +

14.) Final Verdict on SBI Life Saral Insure Wealth Plus

SBI Life Saral Insure Wealth Plus allows you to invest conveniently in the market. It cultivates a disciplined approach in the long run without getting disturbed by the market noise.

But the main drawback of this plan is the hefty charges. One reason for hefty charges is the high agent commission.

SBI Life Saral Insure Wealth Plus invests your premium in the market. Yet the returns are not worth the risk taken. Even after your continuous efforts in saving and investing will go in vain due to low returns from this plan.

Always, opt for a Pure Term Life Insurance Plan to protect your loved ones. In order to achieve your aspirations or goals build an investment portfolio that suits your risk profile.

Having a precise awareness of your initial requirements can guide you much better. Rather than just browsing on Social Media sites like Quora, Facebook, Twitter, etc for investment guidance.

Professional guidance will help you to convert your savings into reliable resources down the lane. Please Consult a Certified Financial Planner for professional guidance.

SBI Life Saral Insure Wealth Plus – Good or Bad Investment Option?