SBI Life Smart Elite Plus
Is SBI Life Smart Elite Plus the plan that offers the flexibility to choose between growth and security based on your needs?
Can the SBI Life Smart Elite Plus Plan secure your legacy while maximizing your returns?
Can the SBI Life Smart Elite Plus Plan protect your family’s financial security and safeguard your future?
In this article, we review the SBI Life Smart Elite Plus plan, delving into its features, benefits, drawbacks, and associated costs. We will also estimate the potential returns to help you make an informed decision.
What is the SBI Life Smart Elite Plus?
What are the features of the SBI Life Smart Elite Plus?
Who is eligible for the SBI Life Smart Elite Plus?
What are the benefits of the SBI Life Smart Elite Plus?
What are the fund options in the SBI Life Smart Elite Plus?
What are the charges under the SBI Life Smart Elite Plus?
Grace Period, Discontinuance and Revival of SBI Life Smart Elite Plus
Free Look Period in SBI Life Smart Elite Plus
Surrendering SBI Life Smart Elite Plus
What are the advantages of the SBI Life Smart Elite Plus?
What are the disadvantages of the SBI Life Smart Elite Plus?
Research Methodology of SBI Life Smart Elite Plus
Benefit Illustration – IRR Analysis of SBI Life Smart Elite Plus
SBI Life Smart Elite Plus Vs. other investment
SBI Life Smart Elite Plus Vs. Pure-term + PPF/ELSS
Final Verdict on the SBI Life Smart Elite Plus
SBI Life Smart Elite Plus Plan is an Individual, Unit Linked, Non-Participating, Life Insurance Saving Product. The SBI Life Smart Elite Plus Plan provides you with the power to choose the options best suited to your needs which adds value to your investments.
| Minimum | Maximum | |
| Age at Entry | 18 years | Limited pay: 55 years Single pay: 60 years |
| Maximum Age at Maturity | 70 years | |
| Plan type | Limited pay / Single pay | |
| Policy term & Premium payment Term (PPT) | Policy term | Premium paying term |
| Limited pay: 15-30 years | 7/10/12 years | |
| Single pay: 5-30 years | One-time payment | |
| Premium Frequency | Single/ Yearly / Half-yearly / Quarterly / Monthly | |
| Premium Range | Limited pay: Yearly: ₹ 36,000 | No Limit |
| Half-yearly: 1,25,000 | ||
| Quarterly: 62,500 | ||
| Monthly: ₹ 21,000 | ||
| Single pay: 2,50,000 | ||
| Basic Sum Assured | Limited pay: 7*Annualised premium Single pay: 1.25 * Single premium | |
In the unfortunate event of death of the life assured, the beneficiary will receive the following benefit:
Gold Option: Highest of
Platinum Option: Higher of
Accidental Death Benefit and Accidental Total and Permanent Disability Benefit: This is an in-built feature where the Accident Benefit Sum Assured is equal to the Sum Assured under this product, subject to an overall cap of ₹ 50 lakhs per life.
On survival of the life assured up to maturity, the Fund Value as of the date of maturity shall be paid as a lump sum.
You can allocate your investment across one or more of the funds listed below, in multiples of 1%. Each fund option has a unique asset composition, resulting in varying risk profiles. It is essential to evaluate your risk tolerance and select funds that align with your financial goals and risk appetite.
| S.no | Name of the fund | Equity & Equity Related Instruments | Debt Instruments | Money Market Instruments | Risk Profile |
| 1 | Equity Elite Fund | 60-100% | 0-40% | 0-40% | High |
| 2 | Balanced Fund | 40-60% | 0-40% | 20-60% | Medium |
| 3 | Bond Fund | – | 60-100% | 0-40% | Low to Medium |
| 4 | Money Market Fund | – | 0-20% | 80-100% | Low |
| 5 | Bond Optimiser Fund | 0-25% | 75%-100% | 0-25% | Low to Medium |
| 6 | Pure Fund | 80-100% | – | 0-20% | High |
| 7 | Midcap Fund | 80-100% | 0-20% | 0-20% | High |
| 8 | Corporate Bond Fund | 70-100% | 0-30% | 0-30% | Low to Medium |
| 9 | Blue-chip Fund | 80-100% | 0-20% | 0-20% | High |
| Discontinued Policy Fund | – | 60-100% | 0-40% | Low |
This charge shall be deducted from Premiums at the time of receipt of such Premium. The allocation to units is made after the deduction of the charge from the Premium received.
A monthly Policy Administration Charge shall be deducted by cancelling units at the prevailing unit price on the first business day of each SBI Life Smart Elite Plus Plan policy month:
Limited Pay Policies: ₹ 100 per month
Single Pay Policies: ₹ 50 per month
| S.no | Name of the fund | Fund Management Charge (p.a.) |
| 1 | Equity Elite Fund | 1.25% |
| 2 | Balanced Fund | 1.25% |
| 3 | Bond Fund | 1.00% |
| 4 | Money Market Fund | 0.25% |
| 5 | Bond Optimiser Fund | 1.15% |
| 6 | Pure Fund | 1.35% |
| 7 | Midcap Fund | 1.35% |
| 8 | Corporate Bond Fund | 1.15% |
| 9 | Blue-chip Fund | 1.35% |
| Discontinued Policy Fund | 0.50% |
Discontinuance charges are calculated as a percentage of a Single Premium or Fund Value. It varies according to the year of discontinuance.
A charge of ₹100 is applicable for every partial withdrawal in excess of one free partial withdrawal in the same SBI Life Smart Elite Plus Plan policy year
A charge of ₹ 100 is applicable for every switch, in excess of two free switches in the same policy year during the SBI Life Smart Elite Plus Plan policy term.
Mortality charges are deducted each policy month from Fund Value by way of cancellation of units. This is charged based on your age and Sum at Risk.
Accident Benefit charges of ₹ 0. 60 p.a. per1000 Sum Assured will be deducted on a monthly basis by cancellation of units
Inference from these charges: Your entire premium is not immediately invested in the chosen fund. A portion is deducted to cover various charges, and only the balance is directed toward the investment. This overhead cost can reduce your overall investment returns over time.
For other than Single premium policies
A grace period of 30 days will be allowed to pay the premium.
If the SBI Life Smart Elite Plus Plan 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 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 SBI Life Smart Elite Plus Plan 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 multiplication of the original sum assured with the total number of premiums paid / the original number of premiums payable.
The SBI Life Smart Elite Plus Plan 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.
In case you disagree with any of the terms and conditions, you have the option to return the policy, within 15 days for policies purchased through channels other than Direct Marketing, for electronic policies (30 days for policies sold through distance marketing electronic policies), from the date of the receipt of the policy document.
For other than Single Premium Policies:
If you surrender in the first 5 policy years, then – Your Fund Value net of appropriate discontinuance charges (if any) at the time of surrender request will be transferred to the Discontinued Policy Fund.
The Fund Value will be payable on any 1 working day of the 6th policy year the SBI Life Smart Elite Plus Plan policy will terminate.
If you surrender after the completion of the first 5 policy years, the fund value is payable immediately the SBI Life Smart Elite Plus Plan policy will terminate.
For Single Premium policies:
You have the option to surrender at any time during the Lock-in Period. Upon receipt of a request for Surrender, the Fund Value, after deducting the applicable Discontinuance Charges, shall be credited to the Discontinued Policy Fund, and the proceeds from the discontinuance fund shall be paid at the end of the Lock-in Period.
You have the option to surrender the Policy at any time. Upon receipt request for Surrender, the Fund Value as on the date of Surrender shall be payable.
Under the SBI Life Smart Elite Plus plan, you pay premiums for a limited period and receive the fund value at the end of the SBI Life Smart Elite Plus Plan policy term.
Let’s evaluate the plan in percentage terms, which helps in comparing it with other investment options. Below is an analysis of the Internal Rate of Return (IRR) based on the benefit illustration provided in the policy brochure.
Consider a 30-year-old male investing in the SBI Life Smart Elite Plus with a sum assured of ₹35 lakhs. The policy term is 20 years and the premium payment term is 10 years, with an annual premium of ₹5,00,000.
| Male | 30 years |
| Sum Assured | ₹ 35,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 5,00,000 |
At the end of the policy term, the accumulated fund value is payable. The brochure projects return assuming investment growth rates of 4% and 8%.
It’s crucial to note that these projections are not guaranteed and do not represent the entire range of potential outcomes. The actual maturity benefit will depend on the plan’s performance over time.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 31 | 2 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 32 | 3 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 33 | 4 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 34 | 5 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 35 | 6 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 36 | 7 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 37 | 8 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 38 | 9 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 39 | 10 | -5,00,000 | 35,00,000 | -5,00,000 | 35,00,000 |
| 40 | 11 | 0 | 35,00,000 | 0 | 35,00,000 |
| 41 | 12 | 0 | 35,00,000 | 0 | 35,00,000 |
| 42 | 13 | 0 | 35,00,000 | 0 | 35,00,000 |
| 43 | 14 | 0 | 35,00,000 | 0 | 35,00,000 |
| 44 | 15 | 0 | 35,00,000 | 0 | 35,00,000 |
| 45 | 16 | 0 | 35,00,000 | 0 | 35,00,000 |
| 46 | 17 | 0 | 35,00,000 | 0 | 35,00,000 |
| 47 | 18 | 0 | 35,00,000 | 0 | 35,00,000 |
| 48 | 19 | 0 | 35,00,000 | 0 | 35,00,000 |
| 49 | 20 | 0 | 35,00,000 | 0 | 35,00,000 |
| 50 | 70,65,394 | 1,28,59,926 | |||
| IRR | 2.24% | 6.18% | |||
– At 4% return: The estimated fund value is ₹70.65 lakhs, resulting in an IRR of 2.24% as per the SBI Life Smart Elite Plus Plan maturity calculator.
– At 8% return: The estimated fund value is ₹1.28 crores, resulting in an IRR of 6.18% as per the SBI Life Smart Elite Plus Plan maturity calculator.
These returns are suboptimal for a long-term investment strategy. A market-linked product offering such low returns does not provide adequate value for investors.
Furthermore, the sum assured is insufficient to meet a family’s future financial needs, making it inadequate as a life insurance solution.
In a nutshell, the SBI Life Smart Elite Plus plan falls short in delivering competitive returns and sufficient insurance coverage, making it ineffective in both its investment and protection aspects.
The IRR analysis reveals that the returns from the SBI Life Smart Elite Plus plan do not outpace inflation.
Over time, inflation increases the cost of financial goals, and the returns from this plan may fall short of keeping up. Let’s explore two alternative scenarios using the same parameters from the previous illustration.
For life coverage, a pure-term insurance policy with a sum assured of ₹50 lakhs costs ₹10,000 annually for a 20-year policy term with a 10-year premium payment term.
In contrast, the SBI Life Smart Elite Plus plan requires an annual premium of ₹5,00,000 for ₹ 35 Lakh life coverage. Choosing a term policy leaves a balance of ₹4,90,000 each year, which can be invested separately.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 10,000 |
| Investment | ₹ 4,90,000 |
Investment options can be tailored to your risk appetite. For this comparison:
– Risk-averse investors may choose debt options like PPF (Public Provident Fund).
– Risk-tolerant investors can consider equity investments such as ELSS (Equity-Linked Savings Scheme).
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 31 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 32 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 33 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 34 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 35 | 6 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 36 | 7 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 37 | 8 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 38 | 9 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 39 | 10 | -4,97,500 | 50,00,000 | -5,00,000 | 50,00,000 |
| 40 | 11 | -500 | 50,00,000 | 0 | 50,00,000 |
| 41 | 12 | -500 | 50,00,000 | 0 | 50,00,000 |
| 42 | 13 | -500 | 50,00,000 | 0 | 50,00,000 |
| 43 | 14 | -500 | 50,00,000 | 0 | 50,00,000 |
| 44 | 15 | -500 | 50,00,000 | 0 | 50,00,000 |
| 45 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 46 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 47 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 48 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 49 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 50 | 1,44,64,368 | 2,68,00,805 | |||
| IRR | 6.97% | 11.11% | |||
With a 10-year contribution period, adjustments are made in the last few years’ contribution to meet the minimum investment period of 15 years under the PPF. The maximum annual limit is ₹1.5 lakh. Although the surplus exceeds the threshold, this is for illustration purposes.
– Estimated maturity value: ₹1.44 Crores
– IRR: 6.97%
This is higher than the 8% return scenario of the SBI Life Smart Elite Plus plan, despite PPF being a debt instrument.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 2,99,11,635 |
| Purchase price | 49,00,000 |
| Long-Term Capital Gains | 2,50,11,635 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,48,86,635 |
| Tax paid on LTCG | 31,10,829 |
| Maturity value after tax | 2,68,00,805 |
– Pre-tax maturity value: ₹2.99 crores
– Post-tax maturity value (after capital gains tax): ₹2.68 crores
– Post-tax IRR: 11.11%
These returns surpass inflation, enabling you to build a corpus for your long-term financial goals.
The comparison demonstrates that separating insurance and investment provides better financial growth.
The SBI Life Smart Elite Plus plan may fall short of delivering the desired corpus for your goals, making it less effective than a strategy involving pure-term insurance and focused investments.
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The SBI Life Smart Elite Plus offers a market-linked investment opportunity, but a closer evaluation reveals that its returns fall short compared to other market-linked products. The returns do not justify the associated risks, largely due to the plan’s high charges.
Additionally, the sum assured may be inadequate to meet a family’s basic needs, potentially disrupting your long-term financial planning.
Combining life insurance with market-linked investments is not an ideal strategy. Overall, the SBI Life Smart Elite Plus is not suitable for long-term wealth accumulation and it also has a high agent commission.
Opting for a pure-term life insurance policy is a more effective choice for life coverage, providing essential protection for your family.
To achieve financial goals, it is important to build a diversified investment portfolio across various asset classes, helping you navigate complex financial conditions.
When it comes to financial advice, are Quora, Facebook, and Twitter the final word?
For personalized guidance in selecting the right financial products, consulting a Certified Financial Planner can be invaluable. Their expertise can help align your investment and insurance choices with your financial objectives.
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