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Is the SBI Life Smart Platina Young Achiever plan the key to securing your child’s future, or are there smarter investment choices out there?
Does this policy truly offer the financial growth it promises, or are you better off exploring other options?
Is this the right investment for young achievers, or should you look elsewhere for better returns?
This review explores SBI Life Smart Platina Young Achiever truly help fulfil your child’s dreams? Let’s analyse its features, benefits, and drawbacks with illustrations.
Table of Contents
What is the SBI Life Smart Platina Young Achiever Plan?
What are the features of the SBI Life Smart Platina Young Achiever Plan?
Who is eligible for the SBI Life Smart Platina Young Achiever Plan?
What are the benefits of the SBI Life Smart Platina Young Achiever Plan?
Death Benefit for Life Assured
Waiver of Premium on Death or Accidental Total Permanent Disability (ATPD) of Proposer
Grace Period, Lapsed & Paid-up Policy and Revival of SBI Life Smart Platina Young Achiever Plan
Free Look Period for SBI Life Smart Platina Young Achiever Plan
Surrendering SBI Life Smart Platina Young Achiever Plan
What are the advantages of the SBI Life Smart Platina Young Achiever Plan?
What are the disadvantages of the SBI Life Smart Platina Young Achiever Plan?
Research Methodology of the SBI Life Smart Platina Young Achiever Plan
Benefit Illustration – IRR Analysis of SBI Life Smart Platina Young Achiever Plan
SBI Life Smart Platina Young Achiever Plan Vs. Other Investments
SBI Life Smart Platina Young Achiever Plan Vs. Pure-term + PPF/ELSS
Final Verdict on SBI Life Smart Platina Young Achiever Plan
What is the SBI Life Smart Platina Young Achiever Plan?
SBI Life – Smart Platina Young Achiever is an Individual, Non-linked, Non-Participating, Life Insurance Savings Product. This plan not only safeguards the child’s future but also gives parents the confidence that their financial support and planning will help the child realise his/her full potential.
What are the features of the SBI Life Smart Platina Young Achiever Plan?
- Ensure risk-free milestone planning for your child with a Guaranteed Benefit in case of the proposer’s death or accidental total permanent disability.
- The plan includes an automatic Waiver of Premium benefits, securing your child’s future without financial burden.
- Enjoy flexible payout options, allowing you to defer the maturity benefit or receive it in instalments for up to seven years based on your needs.
- Avail tax benefits as per the prevailing provisions of the Income Tax Act, 1961.
Who is eligible for the SBI Life Smart Platina Young Achiever Plan?
| Minimum | Maximum | |
| Proposer’s age at entry | 18 years | 65 years |
| Child’s age at entry | 30 days | 15 years |
| child’s age at maturity | 18 years | 35 years |
| Premium paying term | 7/10 years | |
| Policy term | 15 to 25 years | |
| Annualised premium | 50,000 | No limit |
| Sum assured | 3,50,000 | No limit |
| Premium frequency | Yearly, Half-yearly and Monthly | |
What are the benefits of the SBI Life Smart Platina Young Achiever Plan?
Death Benefit for Life Assured
On the death of the Life Assured during the policy term, provided the policy is in force, higher of the following will be payable:
- Sum Assured on Death plus accrued Guaranteed Additions Or
- 105% of Total Premiums Paid up to the date of death
Where; Sum Assured on Death is higher of
- Sum Assured or
- 11 times Annualized Premium
Waiver of Premium on Death or Accidental Total Permanent Disability (ATPD) of Proposer
On Death or Accidental Total Permanent Disability of Proposer during the premium payment term, provided the policy is in force, future premiums payable (if any) on and after the date of death or ATPD under the Policy will be waived off and the Policy will continue as an in-force policy.
Maturity Benefit
If the SBI Life Smart Platina Young Achiever Plan Policy is in force and the life assured survives till the end of the Policy Term, then the Sum Assured on Maturity plus accrued Guaranteed Additions, will be payable as lumpsum at the end of the Policy Term.
Sum Assured on Maturity = Sum Assured.
Guaranteed Additions will accrue at the end of each policy year starting from the first policy year till the end of the Policy Term.
Guaranteed Addition = Guaranteed Addition rate * Total Premiums Paid
| Annualized Premium Band (₹) | Premium Payment Term | |
| 7 years | 10 years | |
| 50,000 to less than 1,00,000 | 5.50% | 6.00% |
| 1,00,000 to less than 2,00,000 | 5.75% | 6.25% |
| 2,00,000 & above | 6.00% | 6.50% |
Grace Period, Lapsed & Paid-up Policy and Revival of SBI Life Smart Platina Young Achiever Plan
Grace Period
A grace period of 30 days from the premium due date will be allowed for payment of yearly and half-yearly premiums and 15 days for monthly premiums.
Lapsed Policy
If the first full policy year’s premium(s) has not been paid, the policy shall lapse without acquiring paid-up benefits after the expiry of the grace period from the date of the first unpaid premium.
Paid-up Policy
After completion of the first policy year, the policy acquires Reduced paid-up value, if at least the first full policy year’s premium(s) has been paid and any subsequent premiums have not been paid.
Revival
If premiums are not paid within the period of grace and the policy is not surrendered, the SBI Life Smart Platina Young Achiever Plan policy may be revived for full benefits within five consecutive complete years from the date of the first unpaid premium while the life assured is still alive.
Free Look Period for SBI Life Smart Platina Young Achiever Plan
In the event the policyholder disagrees with any of the policy terms and conditions, or otherwise and has not made any claim, the policyholder has the option to return the policy within 30 days beginning from the date of receipt of the policy document, whether received electronically or otherwise,
Surrendering SBI Life Smart Platina Young Achiever Plan
The SBI Life Smart Platina Young Achiever Plan policy acquires Guaranteed Surrender Value only if at least the first 2 full policy years’ premiums have been paid.
However, Special Surrender Value shall become payable after completion of the first policy year, provided one full policy year’s premium(s) has been received.
Special Surrender Value (SSV) or Guaranteed Surrender Value (GSV), whichever is higher, is payable as Surrender Value.
What are the advantages of the SBI Life Smart Platina Young Achiever Plan?
- Maturity Benefit can be received as a lump sum or in instalments.
- Policy Loan is available, up to a maximum of 50% of the surrender value.
- Waiver of Premium is an in-built feature that activates upon the demise of the proposer, ensuring continued financial security.
What are the disadvantages of the SBI Life Smart Platina Young Achiever Plan?
- The child is the life insured, and the death benefit is payable in case of the child’s demise, even though life coverage for a child is unnecessary.
Research Methodology of the SBI Life Smart Platina Young Achiever Plan
The SBI Life Smart Platina Young Achiever Plan is designed to help parents save for their child’s future through regular contributions, with all benefits under the policy being guaranteed.
However, to determine whether this plan truly helps in achieving financial goals, it is essential to evaluate its Internal Rate of Return (IRR) using actual figures from the policy brochure.
Benefit Illustration – IRR Analysis of SBI Life Smart Platina Young Achiever Plan
Consider a 35-year-old parent who has just welcomed a newborn and opts for this plan. The policy term is 20 years, with a 10-year premium paying term. The child is the life assured, with a sum assured of ₹14.35 lakhs, and the parent commits to an annual premium of ₹1,00,000.
Over the 10-year period, the total premium paid amounts to ₹10,00,000.
| Male | 35 years |
| Sum Assured (child) | ₹ 14,35,400 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
At the end of the policy term, including guaranteed additions, the maturity benefit received is ₹24.04 lakhs. When we calculate the IRR for this cash flow, it stands at 5.74% as per the SBI Life Smart Platina Young Achiever Plan maturity calculator.
While the benefits are guaranteed, the return on investment is relatively low compared to alternative options available in the market.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 14,35,400 |
| 36 | 2 | -1,00,000 | 14,35,400 |
| 37 | 3 | -1,00,000 | 14,35,400 |
| 38 | 4 | -1,00,000 | 14,35,400 |
| 39 | 5 | -1,00,000 | 14,35,400 |
| 40 | 6 | -1,00,000 | 14,35,400 |
| 41 | 7 | -1,00,000 | 14,35,400 |
| 42 | 8 | -1,00,000 | 14,35,400 |
| 43 | 9 | -1,00,000 | 14,35,400 |
| 44 | 10 | -1,00,000 | 14,35,400 |
| 45 | 11 | 0 | 14,35,400 |
| 46 | 12 | 0 | 14,35,400 |
| 47 | 13 | 0 | 14,35,400 |
| 48 | 14 | 0 | 14,35,400 |
| 49 | 15 | 0 | 14,35,400 |
| 50 | 16 | 0 | 14,35,400 |
| 51 | 17 | 0 | 14,35,400 |
| 52 | 18 | 0 | 14,35,400 |
| 53 | 19 | 0 | 14,35,400 |
| 54 | 20 | 0 | 14,35,400 |
| 55 | 24,04,150 | ||
| IRR | 5.74% |
Another major concern is education inflation, which currently hovers around 11% to 12% in India. This means that education costs double every six to seven years.
Given these rising costs, the returns from this SBI Life Smart Platina Young Achiever plan will fall short in meeting the required corpus for funding a child’s higher education.
Though the plan offers guaranteed benefits, it does not provide sufficient growth to combat inflation. Parents looking to secure their child’s future should consider alternative investment strategies with higher potential returns to bridge this gap effectively.
SBI Life Smart Platina Young Achiever Plan Vs. Other Investments
Comparing different investment options allows you to choose the most suitable avenue for securing your child’s future. The IRR analysis of the SBI Life Smart Platina Young Achiever Plan clearly indicates that it falls short of the required corpus.
Therefore, let’s explore an alternative strategy where the same premium is utilized more effectively.
SBI Life Smart Platina Young Achiever Plan Vs. Pure-term + PPF/ELSS
The SBI Life Smart Platina Young Achiever Plan provides life protection for your child along with maturity benefits. However, in personal finance, life coverage is crucial for the earning member of the family, not the child.
In this case, the child is the primary policyholder, making the life cover redundant and the premium paid towards it inefficient.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 14,35,400 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 12,400 |
| Investment | ₹ 87,600 |
Now, let’s consider an alternative approach where the parent is covered under a pure-term insurance policy with a sum assured of ₹15 lakhs. The annual premium for such a policy is ₹12,400, with a policy term of 20 years and a premium paying term of 10 years.
The remaining premium amount is then invested separately based on the individual’s risk tolerance. We analyse two options: PPF (a risk-free investment) and ELSS (a market-linked investment with higher return potential).
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 36 | 2 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 37 | 3 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 38 | 4 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 39 | 5 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 40 | 6 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 41 | 7 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 42 | 8 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 43 | 9 | -1,00,000 | 15,00,000 | -1,00,000 | 15,00,000 |
| 44 | 10 | -97,500 | 15,00,000 | -1,00,000 | 15,00,000 |
| 45 | 11 | -500 | 15,00,000 | 0 | 15,00,000 |
| 46 | 12 | -500 | 15,00,000 | 0 | 15,00,000 |
| 47 | 13 | -500 | 15,00,000 | 0 | 15,00,000 |
| 48 | 14 | -500 | 15,00,000 | 0 | 15,00,000 |
| 49 | 15 | -500 | 15,00,000 | 0 | 15,00,000 |
| 50 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 51 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 52 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 53 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 54 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 55 | 25,85,079 | 48,04,159 | |||
| IRR | 6.22% | 10.37% | |||
A PPF account requires an annual contribution of ₹500 for 15 years, annual contribution is adjusted to comply with regulations. At maturity, the corpus accumulates to ₹25.85 lakhs, yielding an IRR of 6.22%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 53,47,468 |
| Purchase price | 8,76,000 |
| Long-Term Capital Gains | 44,71,468 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 43,46,468 |
| Tax paid on LTCG | 5,43,308 |
| Maturity value after tax | 48,04,159 |
For ELSS investments, capital gains tax applies at the time of redemption. The pre-tax corpus grows to ₹53.47 lakhs, and after-tax deductions, the post-tax maturity value stands at ₹48.04 lakhs, resulting in an IRR of 10.37% (post-tax return).
With this alternative approach, the parent secures adequate life coverage, while the child’s financial goals are met through a well-planned investment strategy.
Given the rising education costs, it is essential to allocate savings wisely to ensure your child’s dreams are achieved without financial hurdles.
Final Verdict on SBI Life Smart Platina Young Achiever Plan
The SBI Life Smart Platina Young Achiever Plan is marketed as a solution to meet your child’s financial goals. Under this plan, you pay premiums for a limited period and receive a guaranteed maturity benefit at the end of the policy term.
However, while the maturity benefit is assured, it may fall short of your actual financial requirement. The returns on investment are not compelling enough to justify investing in this plan and it also has high agent commission.
Furthermore, as discussed earlier, the life protection component in this plan holds little value. Since the child is the life assured, the life cover does not serve any real financial purpose.
This means that neither the maturity benefit nor the life cover is truly beneficial for an investor.
This highlights a common misconception—children’s education plans with guaranteed benefits often create an illusion of financial security, making investors believe that they provide a comprehensive solution for future financial needs. However, the reality is quite different.
With education costs rising rapidly, it is crucial to invest in instruments that offer inflation-beating returns. This will help accelerate the growth of your investment and ensure that you accumulate a sufficient corpus to meet future expenses.
Achieving your child’s educational goals becomes far easier when you choose the right investment products.
Avoid getting trapped in pre-packaged child education plans that may not align with your actual financial needs. Instead, make investment decisions based on your risk appetite, time horizon, and life goals.
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