Learn to Use SBI Smart Scholar Child Plan Calculator

For parents, it becomes essential to plan for their child’s future, given the factors like rising inflation and education costs. So, there are various child plans available in the market that will help you create a corpus for your child. 

One such plan is the “Smart Scholar Plus Plan” by SBI Life. Now, many of you might be wondering how much investment will be required and what will be returns or maturity benefits. 

To answer all of these queries of parents, the company has curated the SBI Smart Scholar Child Plan Calculator. This blog will explore what the SBI Smart Scholar Child Plan is, how the calculator works, and how you can maximise its benefits.

What is the SBI Smart Scholar Child Plan?

Smart Scholar Plus is an individual ULIP (Unit Linked Insurance Plan) and non-participating plan. Because it’s a ULIP,  you can enjoy insurance coverage along with market-linked returns by investing in ten different funds. 

In addition, the policyholders get the option to boost the funds through loyalty additions. This policy also offers dual protection of lumpsum payout & premium waiver to ensure the policy remains in force, in case of your untimely demise. In this, the policyholder pays for a limited period and obtains benefits that assure their child's future till they become an adult. 

SBI Child Plan Calculator For Maturity Benefits

Once the policy term is completed, the Smart Scholar Plus plan offers maturity benefits which will be the “fund value.” This value will be paid to the beneficiary in a lump sum amount. {Here, the beneficiary can be two entities, i.e., the policyholder or the child, in case the parent/ policyholder dies during the policy term}. 

How To Use The SBI Smart Scholar Plus Child Plan Calculator? 

To get the exact idea of the maturity amount that you or your child is going to receive in the future, understanding how to use the SBI smart scholar child plan calculator is essential. The below step-by-step guide will help! 

• Visit the official SBI Life website. 
• On the homepage, click on ‘Products’> ‘Individual Life Insurance Plans’>‘Child Plans’> ‘SBI Life - Smart Scholar’.
• Scroll down a bit to enter information such as your name, date of birth, and gender, along with your child’s name and date of birth. 
• Then, choose the policy term and premium amount you would like to pay. (Check the below table for reference!)

• Select the premium paying term between three options, i.e., 

1. Single Pay (one time at policy inception), 
2. Limited Pay (5 years to Policy term minus one year) or 
3. Regular Pay (Equal to the policy term) 

Along with this, decide how frequently you want to pay the premiums, whether on a yearly, half-yearly, quarterly or monthly basis. 

• Select how you will divide your investment across the ten available fund options. 
• Double-check the fields again. Once done, click on ‘Calculate”, and you’ll get to know the maturity benefits of this plan. (These are calculated according to 4% or 8% rates of return. 

The above steps will help you with the use of the calculator, but before proceeding further, it is vital to keep the budget in mind as the amount will get used in multiple directions, such as college education, abroad studies, school fees, etc. 

Illustration Of SBI Smart Scholar Child Plus Plan Benefits

Let's have a quick overview of what the benefits of the SBI Smart Scholar Child Plus plan look like. 

Vijay, aged 35 years, bought the SBI Smart Scholar Child Plus plan for his five year old child, with a policy term of 20 years. 

Below are the basic details. 

• Plan Type: Regular Pay
• Policy Term: 20 years
• Fund: 100% Equity fund
• Premium Payment Term (PPT): 20 Years
• Sum Assured: ₹10,00,000 
• Premium: ₹1,00,000 p.a. 

According to the above details, Vijay paid the premium of ₹1,00,000 for 20 Years. 

Case 1) He survived the whole policy term, so the maturity benefits at the assumed rate of 4% and 8% will be ₹23,69,906 and ₹37,38,799, respectively. 

Case 2) Vijay had an accident, and he died in the eighth policy year. In such a scenario, the Sum Assured on Death, i.e., ₹10,00,000, will be payable. Future premiums will be waived, but the policy still remains active. On maturity, the fund value at the rate of 4% and 8% will be ₹23,69,906 and ₹37,38,799, respectively, will be paid. 

How to Maximise Benefits Using The Calculator? 

• Comparing Policy Options

Various life insurance companies offer multiple plans with different benefits. With the use of a life insurance calculator, you can compare quotes of other insurers, as it will help you make an informed decision based on your needs and budget. 

• Evaluating Coverage Needs

It is a bit tricky to identify the ideal life insurance coverage amount. So, a policy calculator will assess your income, debts, expenses, and future financial plans for your dependents and will give you an estimate of the coverage that will be enough to secure your child’s future in your absence. 

• Planning For Milestones

You will never know when your child is going to marry or what kind of education they will choose. So, this calculator will help you estimate your growing financial needs at each stage. In addition, you can make sure coverage adapts to your varying preferences in different stages of life by adjusting the calculator’s parameters. 

• Easy and Convenient 

As available online, you can use these calculators on different devices. And, as per your future requirements and budget, it will help you explore different options. 

• Streamlining Requirement Analysis

With the constant rise in inflation costs and education expenses, the calculator allows you to easily adjust factors like income, dependents, and future goals. By reevaluating the requirements on a periodic basis and changing circumstances, make sure your life insurance coverage remains satisfactory. 

How To Use The Child Education Planner? 

Before we wrap this blog, we want to introduce a tool that will help you find the sum of money required for your child’s dreams and future needs. 

It is “Child Education Planner” by SBI Life. Here’s how to use it! 

• Select ‘Fun way to calculate’. 
• Choose your child’s gender. 
• Mention your child’s name. 
• Select the age of your child. 
• Choose a future career. 
• Mention the age of money requirement. 
• Select where you want your child to study(India or abroad) and then mention the amount required for your child’s education at current rates. 
• Submit the amount saved for your child’s education to date. 
• For the next question, ‘Are you regularly saving funds for your child’s education?’, select “Yes or No”. If yes, then enter the amount you save each month. 
• On the next screen, reply to ‘What kind of investor are you’? (Conservative, Aggressive, or Moderate)
• Now, the calculator will tell you what amount you will need at the selected age. In addition, you can alter parameters to see changes. 

Conclusion

Future planning for your child is crucial in the financial decision-making process. With the change in our lifestyle and high educational cost, it is the right time to offer your child a secure future. With the changing parameters, the online SBI Smart Scholar Child Plan Calculator will help you make an informed decision.

Also Read: 

Save Money For Your Child: All You Need To Know About Child Plan

Are There Risks Involved In Buying Child Plans?

Frequently Asked Questions (FAQs) 

Ques 1. Is it good to invest in a smart scholar plan? 

Ans. Yes, to offer a financially protected future to your child, the SBI smart scholar plan should be on your list. The policy also provides dual protection in your absence by lumpsum payout & premium waiver to ensure the policy continuance.

Ques 2. Is the SBI Smart Scholar Child Plan Calculator free to use?

Ans. Yes, the calculator is available for free on the official SBI Life Insurance website.

Ques 3. Does the SBI Smart Scholar Child Plan offer maturity benefits? 

Ans. Yes! The maturity benefit (fund value) will be paid to the policyholder if they survive or to the child in case of the death of the life assured. 

Ques 4. What are the benefits of using the SBI Smart Scholar Child Plan Calculator? 

Ans. The main benefits of using the SBI Smart Scholar Child Plan Calculator are mentioned below:

• It helps identify potential financial gaps. 
• It is easy to use and lets you explore different options as per the requirement. 
• It helps you evaluate your developing financial needs at each stage and lets you adjust the parameters accordingly. 

Ques 5. How accurate are the results provided by the calculator?

Ans. While the calculator provides a good estimate based on the inputs, actual returns may vary depending on market conditions and fund performance.

Ques 6. Why is using a child plan calculator necessary? 

Ans. With the trend of studying abroad and increasing expenses, a calculator will help you make better investment decisions. In addition, it will guide you on every step that you take.