SBI Life eWealth FAQs - ULIP Tax Benefits, Fund Performance

• Twin benefits of Life Insurance Cover and Market Linked Returns
• Hassle free investment management through Automatic Asset Allocation
• Choice of two plans options - Growth and Balanced, based on overall exposure to Equity, Debt and Money Market instruments, during the Policy Term.
• Premiums starting as low as Rs 24,000 for yearly mode and Rs 2,000 for monthly mode
• No Premium Allocation Charges, thereby enhancing your Fund Value
• Easy and Simple 3 Step Online Buying Process
• Liquidity through Partial Withdrawal(s) from 6th policy year onwards

You can buy this plan online in 3 Simple Steps at www.epolicy.sbilife.co.in:

There are two plan options available under this product – Growth and Balanced. The Premium is invested in the plan option chosen by you through the ‘Automatic Asset Allocation’ feature. Option once chosen, at policy inception, cannot be changed later on during the policy term.

In the Automatic Asset Allocation feature, the allocations in equity reduce and in debt/Money Market instruments increase, as the Policy Term progresses. The units are allocated depending on the price of units for the funds. The Fund Value is the total value of units that you hold across all the unit-linked funds.

There are two plan options available under this product – Growth and Balanced. Your premiums are invested in the plan options chosen by you.

Under AAA, the assets are re-allocated between Equity Fund, Bond Fund and Money Market Fund, depending on the time remaining to maturity of the policy. With this strategy, as your policy gets closer to maturity, funds flow from riskier assets (Equity) to less risky assets (Debt & Money Market), thereby protecting your investments from any wild short term fluctuations in the equity market.

Growth Plan	Balanced Plan
During the initial years of Policy Term, the equity exposure is higher targeting reasonable returns in the long term.   As the Policy Term progresses, the debt/money market investments gradually increase and equity investments decrease.	As compared to Growth Plan, the equity exposure is lower in the initial years of the Policy Term under this plan option.   As compared to Growth Plan, the overall exposure in debt/money market investments is higher offering a balanced approach.

1. Equity Fund (SFIN: ULIF001100105EQUITY-FND111): The objective of this fund is to provide high equity exposure targeting higher returns in the long term.   Assets Minimum Maximum Risk Profile Equity and equity related instruments 80% 100% High Debt instruments 0% 20% Money Market instruments 0% 20%

2. Bond Fund (SFIN: ULIF002100105BONDULPFND111): The objective of this fund is to provide relatively safe and less volatile investment option mainly through debt instruments and accumulation of income through investment in fixed income securities.

Assets	Minimum	Maximum	Risk Profile
Debt instruments	60%	100%	Low to Medium
Money Market instruments	0%	40%

3. Money Market Fund (SFIN: ULIF005010206MONYMKTFND111): The objective of this fund is to deploy the funds in liquid and safe instruments so as to avoid market risk on a temporary basis.

Assets	Minimum	Maximum	Risk Profile
Debt instruments	0%	20%	Low
Money Market instruments	80%	100%

Policy discontinuation is the state of a policy that could arise on account of surrender of the policy or non-payment of the contractual premium due before the expiry of the grace period.
On Discontinuance of policy, we shall communicate the status of the policy within 3 months of the first unpaid premium to you.  If policy is discontinued during first 5 policy years

• Upon expiry of the grace period, in case of discontinuance of policy due to non-payment of premium, the fund value after deducting the applicable discontinuance charges, shall be credited to the discontinued policy fund and the risk cover and rider cover, if any, shall cease.
• You will have the following options in case of discontinuance of policy
• Revive the Policy within a period of 3 years from the date of first unpaid premium, known as revival period.

We offer you a Revival Period of 3 years from the date of first unpaid premium during which. you can revive your policy, by paying all due premiums without interest or fee. Revival is subject to the applicable terms and conditions and underwriting acceptance. The underwriting decision would be communicated to you, post which only your cover would re-commence.

● Revival of a Discontinued Policy during lock-in Period:

 

• If you opt to revive the policy within 3 years time from the date of first unpaid premium, then the Discontinued Policy Fund will be dis-invested and the discontinuance charge, previously deducted, would be added back to this dis-invested fund amount.
• We will allocate the units based on the NAV as on the date of such revival
• We will deduct Policy administration Charge as applicable during the discontinuance period.
• We will restore the original risk cover, along with the investments made in the investment strategy as chosen by you and deduct all applicable Charges from the date of revival of the policy.

 

● Revival of a discontinued Policy after lock-in Period

• If you opt to revive the policy within 3 years time from the date of first unpaid premium, We will allocate the units based on the NAV as on the date of such revival.
• We will restore the original risk cover in accordance with the terms and conditions of the policy and deduct all applicable Charges from the date of revival of the policy

You can surrender your policy at any time during the Policy Term. Once policy is surrendered there will be no option to revive the policy.

Premium Allocation Charge: There are no premium allocation charges under the plan
● Policy Administration Charge:

Policy Administration Charge of Rs. 45 per month will be deducted throughout the term of the policy. Policy Administrative Charges will be recovered by way of cancellation of units at the prevailing unit price on the first business day of each Policy Month.

The Policy Administration Charge would be subject to maximum of Rs. 200 per month. However, revision of charges would be subject to IRDAIs prior approval.

● Fund Management Charges:

A certain fixed percentage of the relevant fund before calculating the NAV on a daily basis will be charged as per the rates below:

Fund Name	Fund Management Charges
Equity Fund	1.35% p.a.
Bond Fund	1.00% p.a.
Money Market Fund	0.25% p.a.
Discontinued Policy Fund	0.50% p.a.

The FMC for all funds except Discontinued Policy Fund would be subject to a cap of 1.35%. We may revise these charges subject to approval from IRDAI.
● Discontinuance Charge:
Discontinuance Charges are expressed as a percentage of Annualized Premium or Fund Value. The year of discontinuance is the policy year in which the date of discontinuance falls.

Year of Discontinuance$	Discontinuance Charge For policies having Annualized Premium up to   Rs 50,000	Discontinuance Charge For policies having Annualized Premium above Rs 50,000
1	Lower of 20% of (Annualized Premium or Fund Value) subject to maximum of Rs. 3,000	Lower of 6% of (Annualized Premium or Fund Value) subject to maximum of Rs. 6,000
2	Lower of 15% of (Annualized Premium or Fund Value) subject to maximum of Rs. 2,000	Lower of 4% of (Annualized Premium or Fund Value) subject to maximum of Rs. 5,000
3	Lower of 10% of (Annualized Premium or Fund Value) subject to maximum of Rs.1,500	Lower of 3% of (Annualized Premium or Fund Value) subject to maximum of Rs.4,000
4	Lower of 5% of (Annualized Premium or Fund Value) subject to maximum of Rs.1,000	Lower of 2% of (Annualized Premium or Fund Value) subject to maximum of Rs.2,000
5 and onwards	Nil	Nil

^$Date of Discontinuance of the Policy, shall be the date on which the Company receives the intimation from the Policyholder, about discontinuance of the Policy or surrender of the policy or on the expiry of the grace period, whichever is earlier.

●  Partial Withdrawal Charges: A charge of Rs.100 is applicable for every partial withdrawal in excess of one free partial withdrawal in same policy year. The charge will be recovered by way of cancellation of units.The Partial Withdrawal Charges would be subject to a cap of Rs.500 per transaction. However, revision of charges would be subject to IRDAI’s approval.

●  Mortality Charges: Mortality Charges are deducted on the first business day of each policy month from Fund Value by way of cancellation of units. Mortality Charges will be based on your age and Sum at Risk at the time of charge deduction.
● Medical Expenses on Revival: Cost of medical expenses incurred (if any) will be borne by the policyholder through cancellation of units subject to maximum of Rs.3,000.
 

Except for Mortality Charges and Premium Allocation Charge, all the other charges are subject to revision with prior approval of IRDAI.

You are liable to pay the Applicable Taxes and/or any other statutory levy/duty/ surcharge, at the rate notified by the State Government or Central Government of India from time to time, as per the applicable tax laws on all the applicable charges as per the product feature.

You can review the terms and conditions of the policy, within 30 days, from the date of the receipt of the Policy Document and where you disagree with any of those terms and conditions; you have the option to return the policy for cancellation stating the reasons for your objection.

We shall refund you the amount arrived as per the following formula:

Fund Value as on the date of receipt of a valid request,
Plus the following which are already deducted
(Policy Administration Charges + Mortality Charges + Corresponding Applicable Taxes)

Minus the following:

(Mortality Charges along with the corresponding Applicable Taxes, proportionate to the period you were covered + Medical Expenses, if any + Cost of Stamp Duty)

On free-look cancellations, the units of each Fund will be liquidated at the NAV as follows:

• If the cancellation request along with the Policy Document, etc. received before 3.00 p.m. on any day: Closing NAV of the same day.
• If the cancellation request along with the Policy Document, etc. received after 3.00 p.m. on any day: Closing NAV of the next business day.

The amount will be paid as a lump sum.

Suicide Exclusion:

If case of death of the Life Assured, due to suicide within  12 months from the date of commencement of policy or from the date of revival of policy, as applicable, the nominee or beneficiary of the policy holder shall be entitled to the fund value as available on date of intimation of death.

 

Further, any charges other than the FMC recovered subsequent to the date of death shall be added back to the fund value as available on the date of intimation of death.

 

Note: This document contains brief information about the features & benefits under the Policy. The same shall not be construed as terms and conditions of the Policy or part thereof. For detailed terms and conditions governing the Policy, please read all parts of the Policy document

 

Risk borne by Policyholder:

• I. “IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER”
• II. Unit Linked Life Insurance Products are different from Traditional Insurance Products and are subject to risk factors.
• III. The premium paid is Unit Linked Insurance policies are subject to investment risk associated with capital markets and the NAVs of the units may go up or down based on the performance of funds and factors influencing the capital market and the insured is responsible for his/her decisions.
• IV. SBI Life Insurance Company is the name of the Insurance Company and SBI Life - eWealth Insurance is only the name of the Unit Linked Life Insurance Contract and does not in any way indicate the quality of the contract, its future prospects or returns.
• V. Please know the associated risk and the applicable charges, from your insurance agent or the intermediary or policy document of the insurer.
• VI. The various Funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects or returns.
• VII. Past performance of the Fund Options is not indicative of future performance.
• VIII. All benefits payable under this policy are subject are subject to tax laws and other fiscal enactments in effect from time to time, please consult your tax advisor for details.

Under extraordinary circumstances, such as extreme volatility in the market price of the assets in the fund, extended suspension of trading on the stock exchanges, natural calamities, riots and similar events, the company reserves the right, not to value one or more FUND Options or to change the formula for calculating NAV. Company will make the changes subject to prior approval by the IRDAI.