Top Sbi Life Investment Plan For 5 Years

The SBI Life investment plan for 5 years is an excellent investment option. Investing for 5 years is a good idea. It is not too short or too long a term. 5 years is a good time for wealth accumulation, however, you don’t have to wait too long for the returns also. These plans can give you the dual benefits of investment and insurance. They make you and your family feel more financially secure. Here, we will discuss some of the best SBI Life Investment Plans for 5 years. 

1. SBI Life - Smart Elite Plan

The SBI Life - Smart Elite Plan is curated for people who want to get high returns from their investments. It has a lock-in period of 5 years and investors can start withdrawing money from the corpus from the 6th year. The returns offered by this plan depend on the market situation. 

Eligibility for this plan:

 

Benefits:

• Accidental cover: The plan comes with an inbuilt accidental benefit cover. It provides an additional benefit for accidental death or accidental permanent disability. The death benefit can be received as a lump sum or as monthly, quarterly, or half-yearly payouts in instalments of over 2 to 5 years from the date of death. A nominee, legal heir, or beneficiary can receive the death benefit. 

• Death benefit: For the gold option, a higher of Fund Value or Sum Assured is payable with a minimum of 105% of total premiums paid as on the date of intimation of the death claim. For the Platinum option, Fund Value plus sum assured is payable, with a minimum of 105% of total premiums paid as on the date of intimation of the death claim.

• Maturity benefit: The premium paid is returned as a lump sum on survival of the Life Assured up to maturity. 

2. SBI Life – Smart Privilege Plan

You can start investing in this plan at a very young age of 13. Parents or guardians can buy this plan on behalf of their child who is at least 13 years old. This is a unit-linked plan and during the tenure of this plan, the investor can alter between multiple funds. The returns accumulated on the funds depend on the market. The returns received during the tenure can be invested again in the market. This plan is ideal for investors who want to accumulate wealth and insurance. The benefits extend to the family also. On maturity, the amount will be paid to you in a lump sum. 

Eligibility:

 

Benefits: 

• Maturity benefit: If the individual lives after maturity, then the premium paid is returned as a lump sum. 

• Death benefit – The fund value on the date of death intimation or sum assured minus applicable partial withdrawals (If any), whichever is higher or 105% of the total premiums received upto the date of death or 105% of the total premiums received upto the date of death minus applicable partial withdrawals, if any.

• Other benefits – These include tax benefits, which are according to income tax laws and are subject to change from time to time. 

3. SBI Life - Smart Wealth Builder Plan

This plan has the least entry age among all the SBI Life investment plans. This plan helps in wealth-building and capital appreciation for the investors by investing in the market. The maturity benefit depends on the market performance, and it will be paid to investors as a lump sum. Investors will not get any dividends during the term. The amount can be withdrawn during the term of the policy under specific scenarios. The amount debited will be deducted from the sum assured. Then, it will be settled to you as a maturity benefit. You will get the option to choose from 11 varied funds according to your preferences. 

Eligibility: 

Benefits: 

• Maturity benefit: If the insured individuals survive the plan till maturity, they are eligible to get the lump sum maturity benefits

• Death benefit – Higher of the fund value as on the date of death intimation or sum assured minus applicable partial withdrawals (If any) or 105% of the total premiums received upto the date of death less applicable partial withdrawals, if any. 

• Other benefits: It gives you the option to invest in multiple funds. 

4. SBI Life - Shubh Nivesh Plan

Shubh Nivesh is an individual, non-linked participating life insurance savings plan. This is a specially curated plan using which you can build a corpus without market risks. It protects your savings and comes with an option to leave a portion of your wealth for your children or grandchildren. In case of a bad incident, the beneficiary gets the death benefit and also gets the revised bonus. The bonus is also revised and added to the maturity benefit. Shubh Nivesh Plan also offers policyholders riders along with the cover of the plan. 

Eligibility

5. SBI Life – Saral Pension

This plan is designed to take care of the retired individuals or those who will retire soon. It accrues interest throughout the tenure and provides benefits to the policyholder at the term end. Even though it is a pension plan, individuals at the age of 18 can also avail of this policy. Based on the frequency of the premium payment, the policy’s duration can be extended for an additional 5 years. 

Eligibility

Benefits:

• You can maintain a current lifestyle post-retirement also with guaranteed regular income.

• You will get guaranteed income payouts with the return of purchase price. 

• Loan and surrender facilities are available for financial emergencies.

• Death benefit: If the insured dies during the tenure of the policy, the total premium received till the time of death is returned along with a vested reversionary bonus.   

• Maturity benefit– Maturity is the total premium received or the basic sum assured (Whichever is higher) along with a bonus (Reversionary and terminal).

• Bonus – A simple reversionary bonus is offered for the first 5 years. Then, a guaranteed bonus is given for in-force policies. 

6. SBI Life - Grameen Bima 

This is a simple micro-insurance plan that you can avail in a hassle-free manner. The best thing about this plan is that it is non-linked and does not depend on the market’s performance. 

Eligibility

Benefits: 

• The premium protection plan is affordable

• The plan offers a simple process for enrolment. 

• Death benefit - If the insured expires during the tenure of the policy, the nominee receives the lump sum amount of the sum assured. 

• Maturity benefits – The plan does not have any maturity benefits. 

• Surrender benefits – You are allowed to surrender the policy 1 year after purchase. No surrender benefits are added. A penalty can be levied for surrendering the policy during the active tenure. When you surrender the policy, you will get all the premium paid back after taxation. 

Disclaimer: The minimum and maximum entry age, maturity age, term of the policy, and other information given above are as of 27th May 2024 when this page was written and are subject to change. For exact details about these, contact the bank or refer to the SBI Life Investment Plan’s page. 

Benefits of SBI Life Investment Plans 

SBI life investment plans come with multiple benefits 

• Higher returns at lower premiums: All SBI Life Investment Plans offer higher coverage at lower premiums. 

• Death Benefits: If the policyholder expires during the course of the investment plan, then the nominee or the beneficiary will receive the benefits of the insurance cover.Also read the difference between sum assured and death benefit here

• Maturity Benefits: If the insured individuals survive the insurance policy, and if they have paid all the determined premiums on time, then they will receive the maturity benefits. This amount depends on the premiums they have paid throughout their tenure and the interest they have gained over it. 

Also read how maturity benefit is computed here

• Tax Benefits: You will be eligible for tax exemption under Section 80C of the Income Tax Act, 1961. The maturity benefits under Section 10 (10) D of the Income Tax Act, 1961 are also tax-free. 

• You can achieve your financial objective: SBI Life Investment Plans can be tailored to be in line with your specific financial goals. It could be anything right from saving for a child’s education, achieving milestones, or building a retirement corpus. 

• Investment choices are flexible: SBI Life offers flexible investment choices including Unit Linked Insurance Plans (ULIPs) and endowment plans. You can opt for a plan that matches your risk tolerance and investment preferences. ULIPs provide a range of investment fund options, providing flexibility in asset allocation. 

• Loyalty Additions and Bonuses: Loyalty additions and bonuses are offered by some SBI Life Investment Plans over a period of time. This will elevate the returns on your investments on the whole. These bonuses can also further enhance your accumulated wealth. 

• Regular Payouts: Some plans such as Money Back and Income plans give regular payouts at specific intervals during the tenure of the policy. They will help you to meet short to medium-term financial needs. 

Conclusion

SBI Life Investment Plans for 5 years are great investment options. They not only yield high returns but also give double tax savings on premiums under 80C and maturity under 10 (10D). They help you plan your future better. With its short tenure, you will accumulate higher returns in a shorter period. So, compare between 5-year SBI Life investment plans and choose the one most suitable to you for investing. 

FAQs on Investment Plans SBI

1. Is there a lock-in period for SBI life investment plans?

According to the guidelines of IRDAI, SBI life investment plans must have a lock-in period of at least 5 years. 

2. Which is the best SBI Life investment plan?

The best SBI Life investment plan depends on your financial goals, investment horizon, and risk tolerance. SBI Life offers multiple investment plans, such as SBI Life eWealth Insurance, SBI Life Smart Platina Assure, and SBI Life Smart Wealth Assure.

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.