With the launch of Smart ULIP, now SBI Life Insurance too has joined the bandwagon of ULIP market. Similar players in the market include LIC jeevan Varsha, ICICI Return Guarantee Fund, IDBI Fortis Bondsurance and Birla Sun Life Platinum Plus. You can read my take on those policies by following the links mentioned for each of those. Now, here is a quick review of SBI life Smart ULIP.
As usual, first the good things about this product:
- The Smart ULIP product provides NAV guarantee that is the highest of 168 fortnightly NAVs during first seven years or NAV at maturity, whichever is higher.
- In case of the unfortunate event of the death of the insured during the policy term, the nominee receives the higher of fund value or sum assured.
- Shorter premium paying term (3 or 5 years).
- Tax benefit on both premiums [U/s 80C] and maturity amounts[U/s 10(10D)]
- Investment is managed by SBI Life – policy holder need not panic in volatile market
Now the bad:
- Short term – just 10 years!
- Too many charges
- Premium allocation charges : 15% in 1st yr, 5% for next 2-4 yrs for 3-5 yrs terms respectively.
- Admin charges – Rs 60/- per month for full term.
- For first three years, annual administration charges of Rs 5 per 1000 of sum assured.
- Fund management charge 1.5% pa. Fund management charge can be increased to 2.5% pa
- Mortality charge levied on 1st day of each policy month.
For more details on this product check the brochure and see the benefit illustration on their site.
Verdict:
This product may appear to be better than other ulip products in the market but not better than a combination of mutual funds with term insurance. I still suggest you folks not to combine insurance with investment. Invest of specific products for each purpose and reap the best benefits from each of those. I know many of you may not agree with me, again it boils down to individual requirement and the phase at which an individual looks at these products. Whatever the case may be, I welcome your comments and suggestions.
syedpathivukamal says
check my policy smart ulip since from 10 october 2010 till 10 3 2016
syedpathivukamal says
check my policy smart ulip since from 10 october 2010 till 10 3 2016
Umesh K says
What is the latest NAV of this SBI life smart ULIP? What is the gain of those who have invested so far? Are you all happy with the performance of this ULIP? Please share your thoughts.
Chintan Roy says
SBI Life SMART ULIP NAV as on Aug-28-2013 is Rs 16.95000. Also, NAV as on Aug-28-2014 is Rs 23.261. What was the entry date for you and what was your initial value at entry?
Umesh K says
What is the latest NAV of this SBI life smart ULIP? What is the gain of those who have invested so far? Are you all happy with the performance of this ULIP? Please share your thoughts.
Chintan Roy says
SBI Life SMART ULIP NAV as on Aug-28-2013 is Rs 16.95000. Also, NAV as on Aug-28-2014 is Rs 23.261. What was the entry date for you and what was your initial value at entry?
Abhi says
The problem at the bottom of it is that the SBI FlexiProtect fund has not grown – it is complete back box fund where no details are provided about the holdings t the investors. If you invest in another open fund even from SBI – you know all their investment details as they are accountable to tell customers. Also they get rated by CRISIL and all. But this fund is completely closed – I cannot find any details anywhere. So what they do with your money is unknown. They may have a bad fund manager screwing with people’s money on it for it to not have grown.
Also since they dont need to reveal investment details – SBI probably pays no attention to this series. Bad choice overall – I opened mine with 90,000 premium in 2009 – and its significantly below my original investment. Even with highest NAV I may make out ok – atleast even – so I will finish the term.
What is important is that you all should hope the fund falls significantly – i iwll explain – right now its NAV is 18 or so..if it stays here..you keep adding money and it never grows..you keep getting same units every year. But if it falls to 9, then you get double the units but still will get paid out at NAV of 18 – so you get a double atleast for one year. So you should all pray they get a really bad fund manager who screws up and allows us to buy double units next year. good luck to all.
shyam sundar bana says
Hai Sir,
please check my policy value of sbi life smart ulip series-11 on now.
shyam sundar bana says
Hai Sir,
please check my policy value of sbi life smart ulip series-11 on now.
Mohd Ali says
hi guys pls advice me i have paid 3 lakhs in first year that is in may 2012 and still i have to pay such instalments for further four years that is a total of 15 lakhs, the second instalment is comming in may 2013, advice me pls what to be done i am not understanding, pls reply and guide me, thanks.
Mohd Ali says
hi guys pls advice me i have paid 3 lakhs in first year that is in may 2012 and still i have to pay such instalments for further four years that is a total of 15 lakhs, the second instalment is comming in may 2013, advice me pls what to be done i am not understanding, pls reply and guide me, thanks.
Krishna says
Dear Mohd Ali,
In short, the SBI Smat ULIP is never a good investment. Being an investor, I advise you honstely, please, for heaven’s sake, don’t think of putting more money in this stupid plan.
To advise you more, I started investing in this plan since 2009. There is a lock-in period of 7 years. Total number of units x the highest NAV achieved during this 7 years will be paid at the end. The highest NAV achieved so far is Rs.19.23.
Ironically, when I started investing in this plan, the stock index was somewhere around 10,000. Ever since, the index has grown to the level of 20K+ but the NAV of this plan never crossed 19.23, believe me. Whenever I sent a query to SBI, they only beat around the bush.
Recently I claried with a guy who is working with SBI-Life. He honestly advise me that this is not a good plan, it will never give you good returns.
To conclude further, I invested money for 3 years (that was my premium term). Now when I look at it, the total number of units I earned x the highest NAV achieved so far (i.e. 19.23) will give me exactly what I invested. I mean, e.g. I invested 5 lakhs, what I will get after 10 years is 5 Lakhs.
If I am lucky, and if the NAV grows further in the next 4 years, then I will get little more than I invested. Otherwise, I will get back what I invested.
Imagine, If I put my money in a Bank FD, indeed in 10 years, it will become double. That is 100% guaranteed.
Don’t even think of investing more money in this stupid ULIP my dear friend. Your money is hard earned money. Try investing in deposits, which offers guaranteed returns. Postal RD’s, Bank FD’s etc. are such money instruments.
I hope it is clear to you now.
Krishna says
Dear Mohd Ali,
Further to my reply posted herebelow, I would like you to discuss this issue with an INVESTMENT EXPERT and make a decision your own. Please don’t take my advise for granted. You must discuss this issue with your friends, investment experts, also somebody working with SBI-LIfe, who can advise you better and who can also give you a better insight to this ULIP Plan. Ok dear. I am regularly monitoring the website. And for the past 1 year or more, the highest locked NAV (Rs.19.23) is not changed, though the BSE index has grown to the level of 20K+.
krishna says
Dear Sridhar,
Thanx for your kind reply dear. My apologies for a delayed ack. I am checking the site often. Really I didn’t know before, else I would have kept myself away from this gambling sort of investing. Agents are so crooked, they just convince you in such a way that they cleverly tell you the ‘pros’ but hide the ‘cons’ part of it. In fact I was just ignorant in this field while commenced my investment. Inf act my knowledge about ULIP was just ‘zero’. Let’s C how the market grows. The bullshness of the market these days seems to be skeptical. Let’s cross our fingers. Good Luck dear and indeed wishing you a fabulous NY. Best rgds Krishna
amar says
Smart ULIP II- A big Gamble Method by SBI first followed by her agent
Can any expert will advise what is the basis that the SBI folks are allocating the units from FlexiProtect II Fund to Money Market Fund??
Paid 3 installments 50KX3=150K, Present invested value is 139K @ NAV INR 11.8/Unit under FlexiProtect II Fund, suprisingly under “Money Market Fund” NAV is INR 14.8/Unit.
Well not thinking about about too much of benefits what would be the right time to surrender this product.
Thank you in advance for your help.
regards
amar says
Smart ULIP II- A big Gamble Method by SBI first followed by her agent
Can any expert will advise what is the basis that the SBI folks are allocating the units from FlexiProtect II Fund to Money Market Fund??
Paid 3 installments 50KX3=150K, Present invested value is 139K @ NAV INR 11.8/Unit under FlexiProtect II Fund, suprisingly under “Money Market Fund” NAV is INR 14.8/Unit.
Well not thinking about about too much of benefits what would be the right time to surrender this product.
Thank you in advance for your help.
regards
Krishna says
Can anyone advise me please.
I have invested in SBI Smart ULIP Rs 180,000 (Qly 15,000 x 3 years). Commenced the policy in 2009 and ended my premium payment recently. The policy term is 10 years. The highest NAV so far is Rs.19+. Upon maturity I will get the benefit either based ont he highest NAV during the first 7 years or the NAV at the time of maturity, whichever is higher. Let us put it this way. The highest NAV upon maturity is 19, then what will be my final earnings on this. Can anyone tell me. I know in ULIP it is purely based on market conditions. Let’s take the highest NAV as Rs.19. Can anyone tell me exactly what will be the amount I would receive at the end. Thanx friends.