Investments can do wonders for your future by helping you strengthen it financially. Investors invest for an array of reasons such as to secure their future financially, combat inflation, and more. If you are inquisitive about investing, SBI Life- eWealth Insurance Plan will definitely arouse your interest.
What is SBI Life - EWealth Insurance Plan?
It is a non-participating unit-linked insurance plan that is constructed to render the benefits of both wealth creation and life insurance coverage. This plan presents market-linked returns because it entails an Automatic Asset Allocation feature. This plan allows you to choose from two plan options – Growth Plan and Balanced Plan. Through the Automatic Asset Allocation feature or AAAP, your premium amount is the plan that you go for. This feature enables you to invest in high-risk equity instruments in the initial years of the policy to guarantee maximum market-linked returns and slowly make a movement towards lower-risk debt or money market instruments to safeguard your investments from short-term instabilities.
How Does ULIPS Function?
ULIPS can be referred to as tools that offer a blend of life insurance policies and investment opportunities through a mutual fund in a single plan.
You can easily find dependable life insurers that offer ULIPs and when you make payments to these corporations while buying a ULIP, these payments are called ‘premiums’. Basically, ULIPS are similar to insurance plans.
Some amount from your premium is diverted towards the investment bit, which is the mutual fund portion: equity, debt, hybrid, or as the case may be.
Fund managers will make sure to look after your investments. You are also permitted to switch between various types of funds to choose a ULIP plan for yourself that you will find most suitable.
What is the Lock-in Period of a ULIP?
A ULIP insurance plan entails a lock-in period of five years. But don’t forget that a ULIP plan is a combination of a life insurance policy and a mutual fund and these are long-term investments that are advised to be maintained for 15 years or more.
Long-term goals: The charges are high in ULIPS and it invests in equities, a ULIP product should be harbored for a long period of time to acquire the maximum benefits of the markets. It suggests interested investors can consider buying a ULIP plan usually when you want to accomplish long term goals such as buying a house in future, marriage, child’s higher education, retirement, and more. Liquidity is not a problem here.
Switching: When you buy one of the ULIPS, you get the liberty to switch between equity, debt, or mutual funds during the term of your ULIP plan to serve your requirements.
Tax Benefits: It is no longer a doubt that the investment made in ULIPS is permitted for deduction under section 80(C), the returns from the policy are exempt from taxation on maturity under section 10 (10D) of the income tax act
Fundamental Attributes of SBI Life eWealth Insurance
This SBI life policy presents life coverage along with the possibility to increase your wealth at an incredible pace.
As per the kind of growth you want and your risk appetite, you can choose from the Balanced plan or the Growth plan.
You get insured for 10-20 years.
The premium payment term and policy duration term are the same. For instance, if your policy term is 10 years, then your premium payment term will also be 10 years.
You will get an option to pay off the policy premium either monthly or annually. For monthly payments, the minimum amount that you can pay is Rs. 1000 and the maximum limit is Rs. 10,000. For annual payments, you can pay a sum of Rs. 10,000 minimum and Rs.1 lakh maximum.
It offers easy wealth management that entails Automatic Asset Allocation.
You will not face any allocation charges on the payment of the premium amount.
An insured individual will become eligible to withdraw partial amounts from the sixth year of the policy.
The sum assured is equivalent to the maturity value of the policy funds or the actual amount guaranteed (whichever is higher).
It is possible to buy SBI Life- eWealth Insurance Plan from Policychayan. We make sure that our customers avail the best experience that helps them satisfy their insurance or investment-related requirements. It is our priority that our customers get a complaint-free experience.
Advantages that come with SBI Life eWealth Insurance
Security - During any eventuality, you will have peace of mind that your near and dear ones will remain financially secure. Depending on the market fluctuations, your funds will be adjusted automatically.
Flexibility - An insured can choose the plan option to invest in after assessing the risk appetite.
Simplicity - It is possible to purchase the policy online conveniently.
Affordability - You can get market-linked returns without bearing any allocation charges and epay-off the premium amount starting from Rs. 1,000 per month.
Liquidity - The plan equips you with the mobility to withdraw partial amounts to combat any unanticipated expenses.
Benefits that are Associated with SBI Life eWealth Insurance
Maturity Benefit - If your policy is active, then you will become eligible to acquire the fund value once the policy term reaches its maturity date.
Death Benefit - For every policy in force, either the fund value or sum assured (whichever is higher) is disbursed, and 105% of the minimum premium amount is reimbursed on the intimation of the demise of an insured individual.
Tax Benefits - As per the Indian Income Tax Act, 1961, the policy helps you reap tax-saving benefits to the policyholder. These benefits tend to differ from time to time and are subject to policy terms and conditions. You should consult with your tax advisor for additional details.