SBI Life Smart Scholar ULIP Child Plan(Features and benefits)

The SBI Life Smart Scholar ULIP is a unit-linked life insurance plan that provides life insurance coverage to a child in the unfortunate event that the parent passes away. This policy works in a rather straight forward way, the policyholder will have to make regular premium payments and the insurance company will invest the same in per-determined stock market funds. These funds will be disbursed to the beneficiary in the event of maturity or death of the life insured.

The life insured is generally a child that can then use these funds to further his education, marry, or engage in other activities that will benefit him or her. Let us now look at some of the most important factors of this plan, such as:

• How does the SBI Life Smart Scholar plan work?
• Features and benefits
• Inclusions and exclusions
• Eligibility criteria

How does the SBI Life Smart Scholar plan work?

The workings of the plan are as follows:

• Step 1: The policyholder buys the plan and adds a benefactor to the policy
• Step 2: The policyholder makes regular premium payments which are then invested in market-linked funds
• Step 3: The benefactor of the policy (child) will be eligible to receive the fund value upon policy maturity or death of the policyholder.

Features and benefits

• Market linked: The Indian markets (NIFTY) have been giving a CAGR return of 11.1% over the course of the last 20 years. This is a reasonably healthy return that a policyholder can expect at maturity. Note that the returns may be variable based on the fund chosen by the policyholder.
• Death benefit: 105% of the fund value will be disbursed to the benefactor in the event of the policyholder’s death.
• Income tax benefit: I.T benefits can be claimed under Section 80C and Section 10(10D) of the I.T Act.
• Accident benefit: This plan also provides accident and disability benefits.
• Partial withdrawals: Partial withdrawals are permitted within his plan. This can assist in times of uncertain liquidity.

Inclusions and exclusions

Eligibility criteria

Entry age

Maturity age

Learn about complete details about this plan through its policy brochure.