The DIY nature of the product essentially caters to specific requirements of millennials who do not want to remain confined to product benefits.
SBI Life Insurance has announced the launch of ‘SBI Life – Smart Future Choices’ , an individual, non-linked, participating, life insurance savings product. One can choose between different payout options as per your changing needs to fulfil your short-term and long-term goals. The plan allows one to select options like 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 provides a unique opportunity to choose benefit pay-outs in a lump sum or flexibly. One can also avail regular cash bonus and pay-outs as per their evolving requirements. This “DIY” nature of the product essentially caters to specific requirements of millennials who do not 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.
Key features of SBI Life- ‘Smart Future Choices’ plan:
1. The plan comes with two benefit options, ‘Classic Choice’ and ‘Flexi Choice’
2. The ‘Classic Choice’ benefit offers a lump sum maturity benefit at the end of policy term and life cover throughout the policy term, while 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.
3. The plan allows one to choose 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 handy, whenever the need arises.
a. The deferred pay-outs also earn interest linked to Reverse Repo Rate during deferment period
b. Additionally, 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.
4. The plan provides consumers with ‘Survival Benefits’ or ‘Lumpsum Benefits’, basis the benefit option chosen
5. Maturity Benefits: ‘Classic Choice’ gives guaranteed sum assured on maturity (maximum of 138%), based on premium payment term, age and opted policy term. Consumers can avail maturity benefits under ‘Flexi Choice’ from either Lumpsum, complete maturity benefit or Pay-outs, maturity benefit amount in instalments or buy Annuity.
6. Special ‘Money on Demand’ feature:
a. Option to choose Cash Bonus payout every year (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.
b. Option to withdraw Survival benefit payouts when payable or withdraw as and when required while it also earns interest