Every parent dreams of securing their child’s future—whether it’s for higher education, marriage, or entrepreneurial aspirations. Planning is essential, and SBI Life Smart Future Star is designed to help parents build a financial safety net for their child’s future.
This SBI child insurance plan is an Individual, Non-Linked ( no link with the market), Participating, Life Insurance, and Savings Product that provides life coverage and ensures a structured savings approach with bonuses.
SBI has launched another Child Insurance plan. Here is the plan details SBI Life Smart Platina Young Achiever-Details & Review
Table of Contents
SBI Life Smart Future Star Features
| Feature | Details |
| Security | Life cover for the child.Inbuilt “Waiver of Premium” benefit for the proposer’s death or total permanent disability. |
| Flexibility | Premium Payment Terms of 7, 10, and 12 years, with a Policy Term ranging from 15 to 25 years. |
| Savings | Sum Assured on Maturity + Accrued Bonuses (if declared) as a lump sum payout. |
| Payout Options | Option to receive the maturity payout as a lump sum or in installments. |
| Tax Benefits | Tax advantages as per the Income Tax Act, 1961 (subject to changes). |
Key Benefits of the SBI Life Smart Future Star Plan
1. Death Claim (For the Child – Life Assured)
If the child (life assured) passes away during the policy term, the nominee receives the higher of:
- Sum Assured on Death + Vested Reversionary Bonuses (if declared) + Terminal Bonus (if any), OR
- 105% of the Total Premiums Paid.
2. Waiver of Premium (For the Proposer – Parent/Guardian)
If the proposer (parent/legal guardian) suffers from death or accidental total permanent disability (ATPD) during the premium payment term:
✔ Future premiums are waived off.
✔ The policy remains in force.
✔ The child still receives the maturity benefit as planned.
3. Maturity Benefit
At maturity the following is payable as a lump sum:
✔ Sum Assured on Maturity + Vested Reversionary Bonuses (if declared) + Terminal Bonus (if declared).
Case Studies: How the Plan Works
To understand the plan better, let’s look at real-life scenarios:
Scenario 1: Maturity Benefit for a Child
Case: Mrs. Kiran, a banker, buys SBI Life – Smart Future Star for her 3-year-old daughter Shelly.
Plan Details:
- Premium: ₹50,011 per year
- Payment Term: 10 years
- Policy Term: 20 years
Maturity Payout (If Policy is in Force):
| Returns Assumption | Total Payout |
| 4% Growth Rate | Rs. 7,11,948 |
| 8% Growth Rate | Rs. 13,19,300 |
Total Premiums Paid: Rs.5,00,110 (excluding taxes).
Scenario 2: Unfortunate Death of the Child (Life Assured) in the 15th Year
- The nominee receives the higher of:
Sum Assured on Death (₹6,32,000) + Bonuses, OR
105% of Total Premiums Paid.
Payout Examples:
- 4% Growth: ₹6,91,961
- 8% Growth: ₹11,47,475
Scenario 3: Proposer’s Accidental Total & Permanent Disability (ATPD) in the 6th Year
- All future premiums are waived off.
- Policy continues and benefits remain unchanged.
- The child still receives the full maturity benefit.
Payout Example (For Shelly at Maturity):
- 4% Growth: ₹7,11,948
- 8% Growth: ₹13,19,300
Scenario 4: Natural Death of the Proposer in the 8th Year
- Similar to ATPD, all future premiums are waived off.
- Policy remains active, and the child still gets the full maturity payout at the end of the term.
Payout Example (For Shelly at Maturity):
- 4% Growth: ₹7,11,948
- 8% Growth: ₹13,19,300
SBI Life Smart Future Star – Eligibility
| Criteria | Eligibility |
| Proposer’s Age (Parent/Guardian) | 18 – 65 years |
| Child’s Age (Life Assured) | 30 days – 15 years |
| Maturity Age (Child) | 18 – 35 years |
| Premium Payment Term | 7, 10, or 12 years |
| Policy Term | 15 to 25 years |
| Minimum Sum Assured | ₹4,00,000 |
| Maximum Sum Assured | No limit (subject to underwriting) |
| Minimum Premium | Yearly: 40,000Half-Yearly: 20,400 Monthly: 3,400 |
| Premium Payment Frequency | Yearly | Half-Yearly | Monthly |
Settlement Options at Maturity
Policyholders can choose how they receive the maturity benefit:
- Lump Sum Payout (Default option).
- Defer Payout by 1-7 years.
- Receive Installments (monthly, quarterly, half-yearly, or yearly) for 2-7 years.
Minimum Installment Amounts
| Mode | Minimum Amount |
| Monthly | ₹5,000 |
| Quarterly | ₹15,000 |
| Half-Yearly | ₹25,000 |
| Yearly | ₹50,000 |
Other Important Features
1. Loan Facility
- Available after acquiring surrender value.
- Loan amount up to 50% of the surrender value.
- Interest rate: 8.50% compounded half-yearly (for FY 2024-25).
2. Surrender Value
- Available after 2 full years’ premium payment.
- Higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) is paid.
3. Policy Revival
- Can be revived within 5 years of the first unpaid premium.
- Interest on overdue premiums applies.
4. Free Look Period
- 30 days to review the policy and cancel if not satisfied.
Discounts & Offers
- High Sum Assured Discount (on premium rates).
- Staff Discount (for SBI & SBI Life employees & families) – 7.5% off.
Exclusions for Waiver of Premium (WoP) on ATPD
- No benefits for ATPD caused due to:
- Suicide attempt or self-inflicted injuries.
- Drug/alcohol abuse.
- Criminal activities.
- War or hazardous activities (e.g., mountaineering, parachuting).
Why Choose SBI Life – Smart Future Star?
Comprehensive Child Plan – Life cover + savings + premium waiver benefit.
Bonus Accumulation – Earn additional payouts over time.
Flexible Premium & Policy Terms – Choose what suits your needs.
Tax Benefits – Save on taxes under applicable laws, Tax-free maturity
This plan is a powerful financial tool to secure your child’s dreams. Start early, plan smart, and ensure your little one a bright, financially stable future!
Why NOT Choose SBI Life – Smart Future Star
- The Child does not need insurance cover, since no one is financially dependent on a child.
- Low future benefits in case of parent demise
- Low maturity Benefits as compared to inflation rate
- Better safe investment options are available with guaranteed returns.
I don’t understand why a child-saving cum insurance plan is launched. After all, there would NOT be a parent who wishes to take the death claim of their child.
In addition, the maturity benefit is quite low if we consider inflation. Even if you pay a 1 lac yearly premium for an SBI child policy, the maturity benefit won’t be enough for future needs.
