Everything You Must Know About SBI Life e-Wealth Plan

At the time of plan start-up, the policyholder chooses the premiums he wants to pay and the plan option.
In terms of equity exposure, the Growth Plan and the Balanced Plan differ. In comparison to the Balanced Plan, the Growth Plan has a higher equity exposure.
SBI Life's eWealth Insurance Plan's Highlights

• This is a non-bonus unit-linked plan.
• In just three easy steps, you may purchase the plan online.
• To fit diverse risk profiles of policyholders, the plan is available in two flavors: Growth and Balanced.
• Automatic Asset Allocation is a feature of the plan that manages the policyholder's investments automatically in order to maximize returns.
• The fund's value is increased because there are no Premium Allocation Charges.

Everything You Must Know About SBI Life e-Wealth Plan

Here is everything you must know about SBI Life e-Wealth Plan:

Maturity Benefit

At maturity, the Fund Value available at the time of maturity is paid. Under the Settlement Option provision of the plan, the policyholder can choose to receive the Fund Value in payments over a 5-year period after the plan's maturity date.

Death Benefit

In the event of the assured's death, the larger of the following amounts will be paid:
Value of the Fund

Net of partial withdrawals made in the previous two years, the Sum Assured

105 percent of all premiums paid up to the time of death

Tax Benefit

Premiums paid under the plan would be exempt from tax up to a limit of Rs.1.5 lakhs under Section 80C. Under Section 10(10D) of the Income Tax Act, the death benefit or maturity benefit received would likewise be tax-free.

Bonus – Because this is a ULIP, no bonus is disclosed.
Loan - A loan is not included in the plan.

Market Volatility

Under the Automatic Asset Allocation (AAA) feature, the premium paid, net of relevant charges, is invested. The premiums are first invested mostly in equities under this provision. As the plan approaches maturity, the number of equity investments decreases, and the proportion of debt or money market instruments increases. This is done in order to safeguard future returns from market volatility.

The net premium is invested in one of three types of funds based on the AAA concept. The money is available.

• Investing in Stocks
• Bond Investing Fund

Money Market Funds (MMFs):

• The death benefit is provided if the policyholder dies within the plan's term.
• The maturity benefit is paid if the plan reaches maturity.

Partial Withdrawals

After 5 policy years, partial withdrawals are permitted in the plan. There is a free withdrawal once a year, after which a charge of Rs.100 per withdrawal would be applied. The minimum partial withdrawal amount is Rs.5000, with further withdrawals in multiples of Rs.1000 up to 15% of the Fund Value.

Grace Period

For annual premium payments, a grace period of 30 days is permitted, while for monthly premium payments, a grace period of 15 days is allowed.

Free Look Period

After the policy is issued, the policyholder is given a 30-day cooling-off period or free look time to study the insurance terms and conditions. The plan can be canceled within this time period if it is determined to be unsatisfactory, and the premium paid will be returned after subtracting the necessary mortality charge, service tax, cess, and stamp duty paid.

Surrendering The Policy

The policy is locked in for five years. If premiums are not paid for the first five years, the money in the Fund Value is transferred to the Discontinuance Policy Fund once the Discontinuation charges have been deducted. This fund would yield a minimum of 4% per year in interest. The money would be kept in the Discontinuance Policy Fund for the next 5 years, with Fund Management fees withdrawn as needed. If the policyholder passes away during this time, the Fund Value on the date of death is paid. Otherwise, the available Fund Value would be paid when the 5-year lock-in period had been completed.

Conclusion

SBI Life's eWealth Insurance plan is an online unit-linked plan aimed at helping you accumulate more wealth. This plan, like all ULIPs, provides partial withdrawals as well as liquidity. This policy allows you to participate in either equity or debt markets, with the purpose of increasing your exposure to equity markets in the first few years. The policy can be purchased for a period of 10 to 20 years, and premiums can be paid in monthly or annual installments.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.