Overview

SBI Life Smart Future Star is a participating, non-linked child insurance plan designed to help parents build a financial corpus for their child's future education and key life milestones. It includes an inbuilt premium waiver benefit for added financial security and requires a minimum annual premium of ₹40,000.

Key Features:

  • Eligibility: Parents or legal guardians aged 18 to 65 years can purchase the plan for children aged 30 days to 15 years.
  • Policy Term: 15 to 25 years.
  • Premium Payment Term: 7, 10, or 12 years.
  • Payout Flexibility: Maturity proceeds can be received as a lump sum or in flexible installments.
  • Tax Benefits: Eligible for tax benefits under Section 123 (previously Section 80C of the old regime) and Section 11, read with Schedule II (previously Section 10(10D)), subject to conditions.

To learn more, review the official policy brochure to understand the premium, bonus projections, and policy terms.

Your child's biggest dreams deserve a financial plan that grows with them. Before choosing SBI Life Smart Future Star, understand how its savings, protection, and bonus features work to see whether it aligns with your family's long-term goals.

This guide breaks down SBI Life Smart Future Star, explains its key policy features, premiums, benefits, returns, and helps you decide whether it's the right child insurance plan.

Confused about whether a child insurance plan from SBI Life aligns with your future goals? Book a free call or chat on WhatsApp with a Ditto advisor, and let us help you out.   

What Is SBI Life Smart Future Star?

SBI Life Smart Future Star is an SBI Life Insurance child plan that offers a guaranteed sum assured at maturity, along with non-guaranteed reversionary and terminal bonuses, if declared. At maturity, the proceeds can be received as a lump sum or through a deferred payout option, subject to the policy terms. 

Under SBI Life Smart Future Star, the child is the life assured, while the parent, grandparent, or legal guardian purchases and manages the policy as the proposer.

SBI Life Smart Future Star: Waiver of Premium and Flexible Payout Options

    • Waiver of Premium Benefit: The feature protects the policy if the proposer dies or suffers a qualifying accidental total permanent disability while the policy is in force. Once the claim is accepted, all future premiums are waived, and the policy continues with its applicable benefits without interruption. This protection remains available even if the child has already attained 18 years of age and become the policyholder.
    • Flexible Maturity Settlement Options: You can receive the entire maturity benefit as a lump sum, defer the lump-sum payout for 1 to 7 years, opt for installments over 2 to 7 years, or take a portion immediately and receive the remaining amount in installments, subject to the policy terms.
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Key Features and Eligibility of SBI Life Smart Future Star

Eligibility Criteria

ParameterCriteria
Sum Assured₹4 lakh with no upper cap (subject to underwriting)
Proposer’s Entry Age18 years to 65 years
Child’s Entry Age30 days to 15 years
Child’s Age at Maturity18 years to 35 years
Policy Term15 to 25 years
Premium Payment Term7/10/12 years (limited pay only)
Premium Payment FrequencyYearly, half-yearly, or monthly
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Key Features

01

Death Benefit

If the child (life assured) dies during the policy term while the policy is in force, SBI Life pays the higher of the sum assured on death (plus any vested reversionary and terminal bonuses, if declared) or 105% of the total premiums paid.

02

Bonus:

SBI Life Smart Future Star is a participating plan and may earn reversionary bonuses based on the insurer's annual surplus. Once declared, these bonuses become part of the policy. A terminal bonus may also be payable at death, surrender, or maturity, but both bonuses are non-guaranteed.

03

Maturity Benefit

If the child survives until the end of the policy term, SBI Life pays the sum assured on maturity along with any vested reversionary bonuses and, if declared, the terminal bonus. After the maturity benefit is paid, the policy terminates, and no further benefits are payable.

04

Policy Loan

A policy loan can be availed once the policy acquires a surrender value. The maximum loan amount is generally up to 50% of the surrender value, and interest is charged at SBI Life's prevailing policy loan rate.

SBI Life Smart Future Star Premiums and Maturity Value 

In this illustration, a 35-year-old parent purchases SBI Life Smart Future Star for a 3-year-old child with an annual premium of ₹50,011. Premiums are paid for 10 years, while the policy runs for 20 years. The total premium paid is ₹5,00,110, and the policy provides a sum assured of ₹6,32,000, along with any applicable bonuses, if declared.

Maturity Benefit

Benefit ComponentAt 4% Assumed ReturnAt 8% Assumed Return
Vested Reversionary Bonus (If Declared)₹69,520₹5,49,840
Terminal Bonus (If Declared)₹10,428₹1,37,460
Total Lumpsum at Maturity₹7,11,948₹13,19,300

Note: The figures above are based on the SBI Life Smart Future Star policy brochure and are purely illustrative. Actual premiums and benefits depend on factors such as the child's age, sum assured, policy term, and underwriting. You can calculate estimated premiums on SBI’s official website. 

Based on this illustration, the estimated net annualized Internal Rate of Return (IRR) is approximately 2.3% under the 4% scenario and 6.4% under the 8% scenario. The actual return is lower than the illustrated growth rates because part of the premium covers insurance costs and policy expenses. 

While the higher scenario may suit conservative investors, the lower scenario may not adequately beat long-term inflation for goals such as higher education. If you are planning for your child’s future education, explore child education insurance plans.

SBI Life Insurance: Performance Metrics

MetricAverage (FY 2024-26)Industry Average
Claim Settlement Ratio98.76%99.00% (Mean)
Amount Settlement Ratio (Average FY 2023-25)95.42%94.83% (Mean)
Annual Business Volume₹38,788.83 crore₹3,778.58 crore (Median)
Volume of Complaints (Per 10,000 Claims)6.6713.10 (Median)
Solvency Ratio1.94x2.00x (Median)
Annual Death Claims Paid₹2,409.93 crore ₹237.24 crore (Median) 

Note: The data is derived from SBI Life public disclosures and IRDAI annual reports. To explore these metrics in greater detail, refer to Ditto Data Lab.

SBI Life Smart Future Star vs. Term Insurance Plus Mutual Funds

For most financially disciplined parents, a combination of adequate term insurance for the earning parent and diversified mutual funds is the more effective approach. It offers stronger income protection, greater liquidity, and higher long-term wealth creation potential than a traditional child savings plan.

Here’s an infographic that helps you compare the two.

SBI Life Smart Future Star vs. Term Insurance Plus Mutual Funds

Why Choose Ditto for Life Insurance?

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SBI Life Smart Future Star
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Conclusion

SBI Life Smart Future Star can help create a dedicated corpus for your child's future, but it should not be the first financial product you buy. Before investing in a child plan, ensure the earning parent has adequate protection through the best term insurance plans and the family is covered by one of the best health insurance plans.

Once your protection needs are addressed, build your child's education or future corpus separately through investments such as mutual funds, the Public Provident Fund (current interest rate is 7.1%), or the Sukanya Samriddhi Yojana (current interest rate is 8.2%), depending on your goals and risk appetite.

Keeping insurance and investments separate provides higher life cover, greater flexibility, better liquidity, and stronger long-term wealth creation.

Frequently Asked Questions

Is SBI Life Smart Future Star a good child insurance plan to buy in 2026?

Smart Future Star by SBI Life Insurance may suit parents looking for a traditional child savings plan with life insurance, bonus participation, and an inbuilt premium waiver benefit. However, parents should first secure adequate term and health insurance, then compare this plan with alternatives such as mutual funds, Public Provident Fund, or Sukanya Samriddhi Yojana based on their financial goals.

Does SBI Life Smart Future Star continue if the proposer dies before the premium payment term ends?

Yes. If the proposer dies during the premium payment term while the policy is in force, the plan's inbuilt premium waiver benefit waives all future premiums. The policy continues to provide its applicable benefits until maturity, subject to its terms and conditions.

What happens to SBI Life Smart Future Star if the proposer suffers an accidental total permanent disability?

If the proposer suffers a qualifying Accidental Total Permanent Disability (ATPD) during the premium payment term, future premiums are waived under the inbuilt benefit. The policy remains active and continues to provide all applicable benefits to the child without requiring any further premium payments.

Can I receive the SBI Life Smart Future Star maturity benefit in installments instead of a lump sum?

Yes. Smart Future Star SBI Life offers flexible maturity settlement options. You can receive the proceeds as a lump sum, defer the payout for up to 7 years, choose installments over 2 to 7 years, or combine an immediate payout with future installments.

Is SBI Life Smart Future Star a ULIP or a traditional participating plan?

SBI Life Smart Future Star is not a Unit-Linked Insurance Plan (ULIP). It is a traditional participating, non-linked life insurance plan. The policy is eligible for reversionary and terminal bonuses if declared, but the returns are not linked to stock market performance, unlike a ULIP.

How much does SBI Life Smart Future Star pay if the child passes away during the policy term?

If the child dies while the policy is in force, SBI Life pays the higher of the applicable sum assured on death plus declared bonuses or 105% of the total premiums paid, as specified in the policy terms. The benefit is paid as a lump sum to the nominee or legal heir.

What is the minimum and maximum age to buy SBI Life Smart Future Star for a child?

A child can be insured under the SBI Life Smart Future Star plan from 30 days to 15 years of age. The proposer, who may be a parent, grandparent, or legal guardian, must generally be between 18 and 65 years at the time of purchasing the policy, subject to the insurer's eligibility criteria.

Does SBI Life Smart Future Star offer tax benefits?

Yes. Premiums paid for SBI Life Smart Future Star may qualify for a tax deduction under Section 123 (previously Section 80C, under the old tax regime), subject to the overall ₹1.5 lakh annual limit and the prescribed premium-to-sum-assured conditions. The maturity benefit, including applicable bonuses, may be tax-exempt under Section 10(10D). For traditional (non-ULIP) policies issued on or after April 1, 2023, the maturity proceeds generally lose the tax exemption under Section 11, read with Schedule II (previously Section 10(10D)) if the aggregate annual premium across such policies exceeds ₹5 lakh. This restriction does not apply to death benefits, which remain fully tax-exempt.

What happens if I stop paying premiums for SBI Life Smart Future Star?

If SBI Life Smart Future Star acquires a paid-up value and you stop paying premiums, the policy does not necessarily lapse. Instead, it may continue as a reduced paid-up policy, subject to the policy terms. In this case, both the death benefit and maturity benefit are reduced in proportion to the premiums paid. Any vested reversionary bonuses and an applicable terminal bonus, if declared, may still be payable. The exact reduced benefits depend on how many premiums were paid before the policy became paid-up. Additionally, the waiver of premium benefit lapses.

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