An individual, non-linked, participating, life insurance savings product called ‘SBI Life – Smart Future Choices’ has launched by SBI Life Insurance.
Investors can choose different pay-out options as per their changing needs to fulfill their short-term and long-term goals. And One can also avail of regular cash bonuses and pay-outs as per their evolving requirements.
The SBI plan allows selecting options such as choosing the premium amount, term policy, or premium payment term along with the capacity to review the features of the life insurance plan as per their changing needs and requirements.
The plan offers a unique opportunity to choose benefit pay-outs in a lump sum or flexibly.
This “DIY” (Do It Yourself) nature of the product essentially caters to specific requirements of millennials who don’t want to remain confined to product benefits opted in past but look for freedom to choose benefits during the policy term or at maturity thereby filling this intrinsic need which existed in the life insurance market.
Features of SBI Life- ‘Smart Future Choices’ plan
- The plan offers two benefit options, ‘Classic Choice’ and ‘Flexi Choice’
- The ‘Classic Choice’ benefit offers a lump sum maturity benefit at the end of the policy term and life cover throughout the policy term, there the other side the ‘Flexi Choice’ offers a basic sum assured as survival benefits at determined intervals along with a maturity benefit at the term-end and life cover.
- The plan allows investors to choose one between the options of receiving Cash Bonus on a year-on-year basis or Defer Cash Bonus, as per consumer choice. The bonus stays as a corpus that will be paid on demand of the policyholder, at any point during the term of the policy, acting as a saving that comes in handy, whenever the need arises.
- The deferred pay-outs also earn interest linked to Reverse Repo Rate (RRR) during the deferment period.
- In also addition, under its unique Auto Cover feature, life risk is covered for 1 year after payment of 2 years premium and for 2 years after 5 years’ premiums are paid in case of non-payment of further premium.
- The plan provides investors with ‘Survival Benefits’ or ‘Lumpsum Benefits’, basis the benefit option chosen.
- Maturity Benefits: ‘Classic Choice’ gives guaranteed sum assured on maturity (maximum of 138%), based on premium payment term, age, and opted policy term. Investors can avail maturity benefits under ‘Flexi Choice’ from either Lumpsum, complete maturity benefit or Pay-outs, maturity benefit amount in installments or buy Annuity.
- Special ‘Money on Demand’ feature:
- Option to choose Cash Bonus pay-out per annum (After bonus eligibility i.e., after payment of 2 years’ premium) or Defer Cash Bonus and withdraw as and when required while it also earns interest.
- Option to withdraw Survival benefit pay-outs when payable or withdraw as and when required while it also earns interest.