How this participating savings plan helps parents build a protected education and marriage corpus for their child.
📌 What Kind of Plan is Smart Future Star?
SBI Life – Smart Future Star is an Individual, Non-Linked, Participating Life Insurance Savings Product designed specifically as a child plan. The life assured is the minor child, while the parent, grandparent, or legal guardian acts as the proposer, ensuring the policy is centred on the child’s long-term goals.
Because it is non-linked, benefits are not tied to market fluctuations. Being participating, it can earn reversionary and terminal bonuses, enhancing the final corpus over time. This makes it suitable for parents seeking a stable, insurance-backed savings plan for education and marriage, rather than a pure market-linked product.
🔒 How It Protects the Child’s Future
- Life Cover on the Child: Provides financial protection during the policy term.
- Inbuilt Waiver of Premium (WoP): If the proposer dies or suffers Accidental Total Permanent Disability (ATPD), future premiums are waived, and the policy continues with all benefits intact.
- Death Benefit: Higher of (a) Sum Assured on Death plus vested bonuses and terminal bonus, or (b) 105% of total premiums paid.
- Sum Assured on Death: Higher of the chosen Sum Assured or 11 times the annualized premium.
🎓 Building an Education & Marriage Corpus
On survival of the child till maturity, the plan pays:
- Sum Assured on Maturity (selected at inception)
- Vested Reversionary Bonuses (if declared)
- Terminal Bonus (if declared)
This lump sum can be used for higher education or marriage expenses, with bonuses gradually building a larger corpus over time.
💡 Bonuses and How They Boost Savings
- Reversionary Bonuses: Added annually to in-force policies, increasing maturity or death benefits.
- Terminal Bonus: Payable at maturity, death, or surrender, linked to accrued reversionary bonuses.
Together, these bonuses enhance the base Sum Assured, rewarding long-term continuation.
⚙️ Flexibility in Term, Premium & Payouts
- Premium Payment Term: 7, 10, or 12 years.
- Policy Term: 15–25 years, with child’s maturity age between 18–35 years.
- Premium Modes: Yearly, half-yearly, or monthly.
- Minimum Premiums: ₹40,000 yearly, ₹20,400 half-yearly, ₹3,400 monthly.
- Minimum Sum Assured: ₹4,00,000.
This flexibility allows parents to align contributions with income patterns while ensuring disciplined savings.
💰 Settlement & Deferral Options
At maturity, parents can:
- Take the corpus as a lump sum.
- Defer payout by 1–7 years.
- Convert into instalments (monthly, quarterly, half-yearly, yearly) over 2–7 years.
- Mix lump sum and instalments.
This helps match inflows with staggered expenses like college fees or marriage costs.
👨👩👧 Eligibility & Age Criteria
- Child entry age: 30 days to 15 years.
- Child maturity age: 18–35 years.
- Proposer entry age: 18–65 years.
- Policy vests in the child once they turn 18, making it their contract directly.
🛡️ Waiver of Premium in Detail
If the proposer suffers death or ATPD during the premium term, all future premiums are waived. Benefits continue unchanged. ATPD is defined with strict medical criteria, ensuring coverage only for severe, lasting disabilities.
📑 Tax & Regulatory Notes
- Premiums and benefits may qualify for tax benefits under the Income Tax Act, 1961, subject to prevailing laws.
- From September 22, 2025, individual life insurance policies are exempted from GST.
- Standard IRDAI provisions apply, including prohibition of rebates and warnings against fraudulent offers.
🎯 Why It Suits Education & Marriage Goals
Smart Future Star is ideal for parents seeking a structured, insurance-led savings plan.
- Waiver of Premium ensures continuity even if the proposer faces death or disability.
- Guaranteed Sum Assured + Bonuses provide a conservative yet flexible path to building a corpus.
- Settlement options allow payouts to match staggered expenses.
Parents should compare costs and returns with other child plans and investment products, but for those preferring a goal-focused, protection-backed approach, Smart Future Star is a strong candidate.
Contact me for any help in getting a new insurance plan.