SBI Child Education Plans in India in 2024

Offered by SBI Life Insurance, the SBI Life child education plan offers a combination of investments and insurance, providing a secure future for your child. Parents can buy these policies to cover their child's future expenses like higher education, marriage, etc. 

In this blog, we’ll explore the top SBI child education plans in India in 2024. 

Features of SBI Life Child Plan

• Create Corpus: By investing in SBI child education plans, you can create a corpus for your child with market-linked investment through diverse fund options. 
• Premium Waiver Benefit: In case the policyholder dies or becomes disabled, the insurance company waives future premiums. 
• Tax Benefits: The premiums paid are eligible for tax benefits as per the IT Act of 1961. 
• Rider Options: Policy coverage can be enhanced by adding riders, such as accidental death, disability, and critical illness. 
• Guaranteed Benefits: SBI child education plans provide guaranteed benefits that ensure your child's higher educational needs are met. 
• Premium Paying Flexibility: Policyholders are given the flexibility to pay a one-time or limited premium at their convenience. 
• Death Benefit: If the insured dies, the nominee receives the death benefits for the child’s future expenses. 

SBI Child Education Plans in India in 2024

• SBI Life - Smart Scholar

Smart Scholar is a unit-linked life insurance plan (ULIP) for children aged between 0 – 17 years. As a policyholder, you pay for a limited period and receive benefits that secure your child's future till they become an adult. Because it’s a ULIP plan, the money can be invested in the 9 diverse funds, as per risk appetite.  

Here’s how this policy ensures your child's security in your absence:

In case of your unexpected passing away, other than the accident provided, the policy remains active: 

Benefit 1 - A lump sum benefit that equals the higher amount of basic sum assured, or 105% of the total premiums received till the date of death, is paid.  

Benefit 2 - the company continues to pay the future premium on behalf of the policyholder (inbuilt Premium Payor Waiver Benefit), and the accumulated fund value gets paid at maturity.

Benefits of SBI Life - Smart Scholar

1. Death Benefit

In case of the unfortunate death of the insured during the policy term, a lump sum benefit equivalent to the maximum of the basic sum assured or 105% of the total premiums received till the date of death will be payable.

Note: No sum assured is payable in case of a child’s death. Now, it depends on the policyholder if he/she wants to continue the policy or terminate the contract. In case of contract termination, the fund value with zero surrender charges will be payable. 

If the child and life assured die during the policy term, the policy will get terminated automatically, and the entire due benefits will get paid along with the fund value.

2. Maturity Benefit

On completion of the policy term, the maturity benefit, which is the fund value, will get paid to the beneficiary in a lump sum. The beneficiaries will either be:

• The policyholder, if he/she is alive 
• Or, child, in case the life assured dies during the policy term

3. Additional In-built Benefits (Only available for Limited premium paying policies)

• Accidental Death or Accidental Total Permanent Disability 
  • This benefit provides an accident Sum Assured, which is equivalent to the base sum assured with the overall cap of 50 lacs( total sum assured) across all policies with SBI Life in case of Accidental Death or ATPD (Accidental Total Permanent Disability). 
• Accidental Permanent and Total Disability Benefit
  • Paid during the policy tenure in case the life assured becomes disabled and is unable to earn from occupation, work, or profession for the entire life.
  • Disability must be caused by violent, external, unforeseeable, and visible means.
  • The reason for disability should be evident, visible, and independent of any other factors and must satisfy the insurer.
  • The event must occur within 6 months. 

Total and permanent disability involves loss of both legs and arms or one leg, one arm, or both eyes. Loss of arms or legs means complete amputation. Loss of eyes means a complete and irrecoverable loss of sight.

4. Premium Payor Waiver Benefit (PPWB)

In case of death of the life assured, the company will pay future premiums on scheduled dates, and the policy remains active. On maturity, your child will get the entitled Fund Value. 

In case of the child’s death, the PPWB will cease along with no charge deduction. 

If the child dies just after the life is assured, the legal heir of the insured person will receive the discounted value of remaining future premiums. 

5. Free Look Period

If the policy is purchased by any method other than Distance marketing or electronically, you will get 15 days to review the policy. If it was via distance marketing or electronically, you have 30 days. If you find any terms and conditions inappropriate according to your requirements, you can return the policy stating the reason for objection.  

6. Loyalty Additions

The company allocates additional units by way of regular Loyalty Additions to give boosts to the investments.  

7. Grace Period

For Yearly, Half-yearly, & Quarterly premium payments, you will have a grace period of 30 days; if premiums are paid monthly, the grace period is 15 days. 

8. Policy Surrendering 

The insured is free to surrender the policy at any time during the policy term. But after surrendering, there is no option to revive the policy.  

If the policy is surrendered during the first five years, then 

• Lock-in condition applies
• After the deduction of the applicable discontinuance charge (if any), the fund value will get transferred to the 'Discontinued Policy Fund.'
• You will receive a minimum interest rate of 4% p.a. or as specified in the prevailing regulation on this Fund. 
• No other charge will be deducted other than the Fund Management Charge of Discontinued Policy.
• PPWB, Life cover, and Accident Benefits will cease to apply.  

If the insured surrenders the policy after completion of the 5 years, the fund value will get paid immediately. 

Eligibility Criteria of SBI Life - Smart Scholar

Parameter	Age (In numbers)
Minimum Entry Age	Parent (Life Assured): 18 years
	Child: 0 years
Maximum Entry Age	Parent (Life Assured): 57 Years
	Child: 17 Years
Minimum Maturity Age	Child: 18 Years
Maximum Maturity Age	Parent (Life Assured): 65 Years
	Child: 25 Years

Premium Chart of SBI Life - Smart Scholar

Plan Type	Premium Frequency	Minimum (in ₹)	Maximum (in ₹)
Single	Single	75,000	No Limit, Subject to Board Approved underwriting Policy
PPT greater than or equal to 8 years	Yearly	24,000
	Half-Yearly	16,000
	Quarterly	10,000
	Monthly	4,000
PPT 5 Years to 7 Years	Yearly	50,000
	Half-Yearly	25,000
	Quarterly	12,500
	Monthly	4,500

SBI Life – Smart Champ Plan

Smart Champ Plan is a plan that meets the parent’s requirements of offering a bright future against the uncertainties of life. The policy has assured benefits, which are payable during the policy term. In addition, till the child completes 18 years of age, it will accrue bonuses if declared at the end of the policy year and a final terminal bonus if stated. 

Benefits of SBI Life – Smart Champ Plan

1. Education Needs

SBI Child Education Plans ensure your child's education is covered with Guaranteed Smart Benefits. These benefits are paid in four equal yearly instalments when your child turns 18 and continue until they turn 21. The payments are made at the end of each of the last four policy years: 

Each payment is 25% of the basic sum assured and 25% of any bonuses that may be declared. 

2. Triple Protection for Your Child 

If the insured passes away during the policy term, the plan offers three layers of protection:

• Immediate Payment: "Sum Assured on insured event" is payable as a lump sum amount right away.
• Waiver of Due Premium: All future premium payments are waived, ensuring your family is not financially burdened. The policy continues to accrue bonuses if declared.
• Smart Benefit: The scheduled Smart Benefit instalments are still payable. The terminal bonus, if declared, is included with the last instalment of Smart Benefits.

3. Flexible-Premium Payment Options

• Single Premium Policy (SP Policy): Pay the premium once at the start of the policy.
• Limited Premium Payment Term Policy (LPPT Policy): Pay the premiums over a limited term.

4. Annual Bonuses

The  Smart Champ Plan participates in the company’s profits. That’s why policyholders are given simple reversionary annual bonuses if declared. 

5. Policy Loans

Policyholders can borrow loans against their policy before the last 3 policy years once it acquires surrender value. 

Eligibility Criteria of SBI Life – Smart Champ Plan

Parameter	Life Assured	Child
Minimum age at entry	21 years	0 years
Maximum age at entry	50 years	13 years
Minimum age at maturity	42 years	21 years
Maximum age at maturity	70 years	-

Premium Chart of SBI Life – Smart Champ Plan

Premium Payment Mode	Minimum Premium
Monthly	₹500
Quarterly	₹1500
Half-yearly	₹3000
Annual	₹6000
Single	₹66000

Frequently Asked Questions (FAQs)

Ques 1. Which SBI child plan is best?

Ans. The two best SBI child plans are: 

• SBI Life – Smart Scholar
• SBI Life – Smart Champ Insurance

Ques 2. Which one to choose: SBI Life - Smart Scholar or SBI Life – Smart Champ Plan

Ans. Both Smart Scholar and Smart Champ Plan differ from each other and offer a lot of benefits. 

If you want to create a corpus for your child’s future, choose Smart Scholar, as it’s a ULIP plan that offers 9 fund options, along with life cover. 

On the other hand, Smart Champ Plan is a traditional participating life insurance policy designed to cover your child's educational expenses by providing guaranteed payouts at key educational milestones, between the ages of 18 to 21 and life cover for financial security. 

Ques 3. Are there any tax benefits associated with these plans?

Ans. Yes, the premiums paid are eligible for tax deductions u/s 80C of the IT Act up to Rs. 1.5 lakhs.  

Ques 4. Can I take a loan against the SBI child education plan?

Ans. Yes, the Policyholder can avail of a loan against SBI Life – Smart Champ Insurance once it acquires a surrender value, subject to specific terms and conditions.