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SBI Life’s e-Wealth Insurance Plan is a unit linked plan which offers wealth maximization through automatic allocation of premiums for a higher return. The plan provides two investment objectives and the policyholder can choose an objective as per his risk appetite. There is no premium allocation charge under the plan which can be easily bought online.
Step 1 – the policyholder chooses the premium amount, plan term and the premium paying frequency. The Sum Assured is then calculated as 10 times the annual premium paid.
Step 2 – the policyholder also chooses the plan option. There are 2 strategies which are Growth and Balanced. Premiums are then invested in three funds, Equity Fund, Bond Fund and Money Market Fund according to the Automatic Asset Allocation Strategy which depends on the plan option selected. The Automatic Asset Allocation strategy works on the ‘Years to Maturity’ principle. Initially, the allocated premium is invested in equity oriented funds in a pre-defined ratio based on the plan option selected. As the plan approaches maturity, the funds are reallocated to debt-oriented funds in a pre-defined proportion. Under this strategy, the funds are reallocated from equity exposure to debt exposure to protect returns generated from market volatility. In Growth Option, equity exposure is higher compared to Balanced Option where exposure is lower.
Step 3 – the policyholder can make partial withdrawals or switch his investments if Investor Selectable Portfolio Strategy is chosen.
Step 4 – in case of death during the plan term, the death benefit is paid.
Step 5 – if the insured survives the plan tenure, the maturity benefit is paid.
Bihan, aged 30 years, buys the plan for a term of 20 years. The premium he chooses to pay is Rs.50, 000 and the Sum Assured is Rs.5 lakhs.
Option 1 – He opts for Growth option. The premium is invested in Equity Fund in any ratio between 60% and 80% and the remaining is invested in either of or in both Bond Fund and Money Market Fund. As the plan approaches maturity, the exposure is reduced from Equity Fund and increased in Bond Fund and Money Market Fund. If Bihan dies during the term, death benefit is paid. If he survives, maturity benefit is paid.
Option 2 – He opts for Balanced Option. The allocated premium is invested in Equity Fund in any ratio between 55% and 75% and the remaining is invested in either of or in both Bond Fund and Money Market Fund. As the plan approaches maturity, the exposure is reduced from Equity Fund and increased in Bond Fund and Money Market Fund. If Bihan dies during the term, death benefit is paid. If he survives, maturity benefit is paid.
Bihan can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure.
Provided that the death benefit is at least 105% of the total premiums paid till death
Moreover, the Sum Assured would be deducted for any partial withdrawals made during two years prior to death
|Age at entry (in completed years)||18 years||50 years|
|Age at maturity (in completed years)||NA||60 years|
|Term of the plan||10 years||20 years|
|Premium paying options||Regular pay|
|Premium Paying term||Equal to plan term|
|Annual premium amount||Yearly – Rs.10,000
Monthly – Rs.1000
|Yearly – Rs.100,000
Monthly – Rs.10,000
|Sum Assured||10 times the annual premium|
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value is paid to the nominee.