SBI Life Smart Wealth Assure is a single premium ULIP (Unit Linked Insurance Plan) that aims to offer the best of both worlds—life insurance protection and market-linked investment growth. Backed by SBI Life’s reputation, it offers multiple fund options, partial withdrawals, and the flexibility to switch investments along the way. On paper, it looks like a convenient one-time investment that takes care of both wealth creation and financial security.
ULIPs have remained popular among investors who seek the convenience of combining insurance with market-linked returns in a single product. The appeal is understandable—on paper, it feels like the best of both worlds. However, while ULIPs offer structure and tax benefits, they often come with layers of charges and may not always be the most efficient tool for either protection or wealth creation.
That said, if you're still considering ULIPs as part of your financial strategy, should SBI Life Smart Wealth Assure be on your radar? Let’s take a closer look at its features to help you decide.
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Overview
Quick Verdict on SBI Life Smart Wealth Assure Plan Review
The SBI Smart Wealth Assure plan may look attractive at first glance, with its single premium option, market-linked returns, and life cover. But dig a little deeper, and the cracks begin to show. The life cover is minimal (just 1.25x your premium), the investment options are tied to costly ULIP fund charges, and there are no guaranteed returns. You’re essentially paying high fees for average market performance and a weak insurance cover. If your goal is wealth creation, mutual funds give you more freedom and better returns. And if you're looking for life protection, a term plan does the job at a fraction of the cost. All in all, you’re better off keeping your investment and insurance separate.
Metrics of SBI Life
| Metric (Avg of 2021-24) | SBI Life Metrics | Industry Metrics |
|---|---|---|
| Claim Settlement Ratio | 97.64% | Mean: 98.13% |
| Solvency Ratio | 2.1 | Mean: 2.0 (IRDAI specifies a minimum of 1.5 is acceptable) |
| Complaint Volume | 4.8 | Median: 15 per 10,000 claims |
| Amount Settlement Ratio | 95.20% | 94.10% |
| Total Business Volume | ₹31,095crore | Median: ₹3,018 crore |
| Amount Paid in Claims | ₹2,126 crore | Median: ₹254 crore |
What is a ULIP?
A Unit Linked Insurance Plan (ULIP) is a hybrid financial product that attempts to merge two goals—life insurance and market-driven investment—into a single package. Part of your premium is allocated toward life cover, while the remaining amount is invested in funds of your choice—be it equity, debt, or a balanced mix.
Sounds efficient, right? But here’s the catch: ULIPs come with a fair share of risks. Since your investment is linked to the market, returns are unpredictable and can fluctuate with market volatility. On top of that, they often carry multiple charges—like fund management fees, mortality costs, and policy administration expenses—which can quietly eat into your returns over time.
In theory, it’s a two-in-one product. In practice, it’s often a compromise on both fronts.
Details of SBI Life Smart Wealth Assure Plan
1) SBI Life as an insurance provider:
| Metric (Avg of 2021-24) | SBI Life Metrics | Industry Metrics |
|---|---|---|
| Claim Settlement Ratio (Avg of 2021-24) | 97.64% | 98.13% (AVG) |
| Solvency Ratio (Median 2021-24) | 2.1 | 2.0 (AVG) |
| Complaint Volume (Median 2021-24) | 4.8 | 15 (Median) |
| Total Business Volume (Avg of 2021-24) | ₹31,095 crore | ₹16,265.05 crore |
| Amount Paid in Claims (Avg of 2021-24) | ₹2,125.8 crore | ₹1,628.54 crore |
| Amount Settlement Ratio (Avg of 2021-24) | 95.20% | 94.17%(AVG) |
SBI Life Insurance stands out in the life insurance space with strong performance across key metrics. Between 2021–2024, it maintained a reliable Claim Settlement Ratio of 97.64% and an above-average Amount Settlement Ratio of 95.2%. Financially sound with a 2.1 solvency ratio (above the IRDAI minimum of 1.5), the company also excels in service, registering just 4.8 complaints per 10,000 claims—well below the industry median. With massive scale—₹31,095 crore in business volume and ₹2,126 crore in payouts—SBI Life combines financial strength, fairness, and customer-centricity to remain a dominant force in the Indian insurance market.
2) In-Built Features of SBI Life Smart Wealth Assure Plan
| Feature | Details |
|---|---|
| Entry Age | Minimum: 8 years, Maximum: 60 years (life assured), Minimum for Accidental Death Benefit Option: 18 years |
| Policy Term | Minimum: 10 years, Maximum: 30 years |
| Lock-in Period | 5 years (no surrender or withdrawal allowed during this period) |
| Premium Payment Term | Single Pay (one-time payment only) |
| Minimum Premium | ₹50,000 (in multiples of ₹100) |
| Maximum Premium | No upper limit (subject to Board Approved Underwriting Policy) |
| Basic Sum Assured | Single Premium × 1.25 times |
| Max Sum Assured (Accidental Death Benefit) | Up to ₹50 lakh (across all SBI Life policies for a single life) |
| Investment Funds | 7 fund options:- Bond Fund- Equity Fund- Balanced Fund- Bond Optimiser Fund- Corporate Bond Fund- Money Market Fund- Pure Fund. Invest in any combination (in multiples of 1%). |
| Partial Withdrawals | Allowed after 5th policy anniversary or age 18 (whichever is later) Min: ₹5,000 (multiples of ₹1,000) Max: 20% of Fund Value/withdrawal Max 2 withdrawals/year First withdrawal is free. A charge of ₹100 per withdrawal after that. Up to 5 withdrawals for policy term <15 years, up to 10 for ≥15 years Fund value after withdrawal must be ≥50% of the single premium; if it dips below that, withdrawal is not allowed. |
| Settlement Option (Death Benefit) | Paid as a lump sum or in instalments (of 2–5 years). Frequency: annual/half-yearly/quarterly/monthly. Investment risk during settlement is borne by the beneficiary. Switches are allowed; no partial withdrawals during this period |
| Death Benefit | Higher of:- Fund Value on date of death intimation OR Basic Sum Assured minus applicable partial withdrawals (not applicable if minor), Paid as lump sum or via settlement |
| Accidental Death Benefit Rider | Optional Sum assured: ₹25,000 to ₹50 lakh. Entry age: 18–60 years. Maturity age: up to 70 years. Paid as a lump sum or settlement. In addition to the death benefit. |
| Fund Switching | Allowed between 7 funds Min switch amount: ₹5,000 2 free switches/year; ₹100 per extra switch Unused free switches cannot be carried forward. |
| Surrender | Within 1st 5 years: Fund value (after charges) moves to a Discontinued Fund earning 4% p.a.; payout only after 5 years. Life cover ends. After 5 years: Full fund value is paid out immediately; policy terminates. |
| Free Look Period | 15 days (30 days for distance/electronic policies) to cancel policy with refund (minus proportionate charges) |
| Tax Benefits | Eligible as per prevailing tax laws |
| Types of Charges | Premium Allocation Charge: 3% of single premium deducted upfront before investment, Policy Administration Charge: ₹45/month for first 5 years, capped at ₹500/month, Fund Management Charge: deducted daily before NAV calculation—Equity/Pure Fund 1.35% p.a., Balanced Fund 1.25% p.a., Bond Optimiser/Corporate Bond Fund 1.15% p.a., Bond Fund 1.00% p.a., Money Market Fund 0.25% p.a., Discontinued Policy Fund 0.50% p.a., Mortality Charge: monthly deduction based on age and sum at risk, Accidental Death Benefit Charge (optional): ₹0.50 per ₹1,000 sum assured annually, charged monthly, Switching Charge: 2 free switches/year, ₹100 per extra switch (max ₹500), Partial Withdrawal Charge: 1 free/year, ₹100 per extra withdrawal (max ₹500), Discontinuance Charge: varies by premium and policy year, up to 2% of premium or fund value, max ₹3,000. |
Notes: Investment risk in the investment portfolio is borne by the policyholder. This is a single premium, unit-linked, non-participating life insurance product. Minimum and maximum ages are as of the last birthday. A discontinued policy fund is not an investment choice; it is only used for early surrender.
3) Riders in the SBI Life Smart Wealth Assure Plan
The Accidental Death Benefit Rider under SBI Smart Wealth Assure provides an added layer of protection by offering an additional payout, ranging from ₹25,000 to ₹50 lakh, if the life assured dies due to an accident. Available to individuals aged 18 to 60 (with coverage up to age 70), the benefit can be received either as a lump sum or in instalments, depending on the nominee’s preference. This rider complements the base policy by specifically addressing accidental risks, making it a useful option for those seeking to enhance their financial security.
No other riders are offered apart from the accidental death benefit.
Should You Buy the SBI Life Smart Wealth Assure Plan
1) As an Investment Option (ULIP Perspective)
Smart Wealth Assure gives you a one-time investment route with flexibility to choose from 7 different fund options—ranging from equity to bond and money market funds. You also get the freedom to switch between funds (2 free switches annually), invest in a mix (in multiples of 1%), and make partial withdrawals after the 5-year lock-in. This provides a level of flexibility that traditional insurance products often lack.
Also, because it’s a single-premium plan (minimum ₹50,000), you don’t need to commit to ongoing premiums.
However, like all ULIPs, we generally do not recommend Smart Wealth Assure as an investment vehicle. Here’s why:
- Dual-purpose design: ULIPs attempt to combine insurance and investment, which often leads to compromises on both fronts.
- Market-linked returns: The investment component is exposed to market risks, offering no guaranteed returns.
- High charges: Multiple fees—such as fund management, mortality, and policy administration charges—eat into the overall returns.
- Lower cost efficiency: Despite reduced charges in some ULIPs, they still don’t match the cost-effectiveness of keeping insurance and investment separate.
- Better alternatives exist: Term insurance for protection + mutual funds for investment generally deliver better long-term outcomes.
A better financial strategy would be:
- Buy a term insurance policy that offers a large cover at a low cost.
- Invest the remaining amount (that you would’ve put into a ULIP) in mutual funds, index funds, or other market-linked products with lower costs, immediate liquidity, and better transparency.
So yes, Smart Wealth Assure is a better-structured ULIP than many older versions in the market, but it still doesn’t beat the effectiveness of keeping your protection and investment strategies separate.
2) As a Life Insurance Option
Being a ULIP, Smart Wealth Assure offers limited life cover. The sum assured is just 1.25× your single premium (so for a ₹1 lakh premium, you'd get ₹1.25 lakh as the basic life cover). That may be enough to meet ULIP regulations, but it's far from enough for anyone with actual financial dependents. Let’s take a realistic example:
Smart Wealth Assure (ULIP)
| Parameter | Value |
|---|---|
| Age | 35 years |
| Premium (Single Pay) | ₹1,00,000 |
| Life Cover | ₹1.25 lakh |
| Accidental Death Benefit | ₹50 lakh (optional) |
| Investment Returns | Market-linked, post charges |
| Charges | Multiple (mortality, FMC, admin) |
Pure Term Insurance
| Parameter | Value |
|---|---|
| Age | 35 years |
| Annual Premium | ₹18,000–₹21,000 |
| Total Premium (30 years) | ₹5.4–₹6.3 lakh |
| Life Cover | ₹1 crore |
| Leverage (Cover ÷ Total Premium) | ~15.9× to ~18.5× |
| Type | Pure protection (no investment) |
This illustrates the key issue with using ULIPs as life insurance:
- They offer very low protection
- They are significantly more expensive if you’re trying to use them to secure your family’s financial future
So, while Smart Wealth Assure does include life cover, it should not be considered a substitute for proper life insurance.
A term insurance plan is far more suitable if your goal is financial protection, because it is:
- More affordable
- Offers much higher coverage
- Provides pure, no-frills protection
SBI Life Smart Wealth Assure might look attractive because of its single-premium model and fund-switching flexibility. But if you're serious about either investing or protecting your family, it falls short on both counts. You're better off keeping your investment and insurance needs separate—buy term, invest the rest in avenues like mutual funds, NPS, etc.
Should You Buy ULIPs?
ULIPs bundle insurance and investment
ULIPs (Unit Linked Insurance Plans) promise dual benefits—life cover and market-linked returns—making them appear like a smart, all-in-one financial product.
They offer flexibility
You can switch between equity and debt funds, and make partial withdrawals after a lock-in period. This flexibility can be appealing for investors who want some control.
But they often underperform
ULIPs usually don’t deliver strong results on either front. Investment returns are often lower than mutual funds due to high charges like fund management fees, mortality charges, and policy administration costs.
Life cover is limited
The life insurance component is typically small—usually 1.25x or 10x your premium—which pales in comparison to term insurance where you can get ₹1 crore cover at a relatively low annual cost.
They lack transparency and liquidity
Many ULIP charges are hidden within the fund value, and your money is locked in for 5 years—even if you want to exit early, you’ll face penalties or discontinuance charges.
Buy a pure term insurance plan for financial protection, and invest in low-cost index or mutual funds for long-term wealth creation. It’s more cost-effective and gives you better control over your money.
ULIPs Vs Term Insurance Policies
| Aspect | ULIPs | Term Insurance Plan |
|---|---|---|
| Product Type | Single product combining insurance + investment | Pure insurance |
| Life Cover | Included within the same plan | Term insurance provides high life cover separately |
| Charges | Higher overall charges (fund management + mortality + admin + allocation charges) | Lower total charges (term insurance premiums are low) |
| Flexibility | Switching funds is possible but limited and sometimes costly | Full flexibility to choose any insurance separately |
| Lock-in Period | Minimum 5 years lock-in | No investment component, so no locking and no returns as well |
| Returns Potential | Potentially lower net returns due to higher charges | Term plans offer pure life cover with no returns/maturity benefits |
| Insurance Cover Quality | Moderate, limited by sum assured chosen in ULIP (Usually 10x annual premiums) | High coverage available at very low cost (20-30x annual income) |
| Tax Benefits | Premiums qualify under 80C; maturity proceeds usually tax-free under 10(10D) | Same as ULIPs |
| Complexity | Single policy is easier but somewhat complex in terms | Easy to manage, especially with Single Pay/Limited payment term |
| Suitability | Suitable for investors who want an all-in-one plan and are okay with moderate charges | Better for people wanting optimized life cover, with flexibility to manage insurance and investment separately |
The Why, When, What, and How of Term Insurance Plans in 2025
a. Why should you buy Term Insurance Policies?
- High Coverage at Low Cost: Term plans offer large life cover (often 20–30× your annual income) for a fraction of the cost of ULIPs or endowment plans.
- Pure Protection: Unlike ULIPs, term insurance is focused solely on providing financial security to your family in your absence—no investment, no hidden charges.
- Simple and Transparent: Easy to understand, no complex fund options, and claims are typically straightforward, making it a reliable safety net for your loved ones.
- Customizable with Riders: Term plans often come with add-ons like critical illness or accidental death benefits, letting you tailor coverage to your needs.
- Easy to Avail: Buying and claiming term insurance is generally quick and hassle-free, with simple documentation and speedy approvals.
- Locked-in Premiums: Your premium remains fixed throughout the policy term, helping you plan your finances without surprises.
b. When should you buy Term Insurance Policies?
Honestly? The best time to buy was yesterday. The next best time is as early as possible after eligibility. Your late 20s to early 30s are generally a good time to buy a term insurance policy. At this age, premiums are significantly lower, and once you buy the policy, these rates get locked in for the entire term, no matter how your health changes later. It’s also the phase when financial responsibilities start increasing—think marriage, kids, home loans—which makes it crucial to have a solid financial backup in place for your family.
c. What Term Insurance Policies should you buy? (Best Term Plans in 2025)
| Insurance Plan | Coverage and Riders |
|---|---|
| Axis Max Life Insurance Smart Term Plan Plus | Accidental Death Benefit, Critical Illness Cover (64 illnesses), Regular or Smart Cover (1.5X coverage for first 15 years), Women's Perks (Lifeline Plus & Maternity Cover), Waiver of Premium on Disability or Critical Illness, Zero-Cost Exit Option, No Inflation-linked Top-Up |
| ICICI Prudential iProtect Smart | Accidental Death Benefits, Life Stage Benefit (increased coverage after milestones like marriage/childbirth), Terminal Illness Payout, Critical Illness Cover (34 illnesses), Zero Cost Option, Waiver of Premium on Permanent Disability (accident-related) |
| HDFC LIFE Click 2 Protect Super | Accidental Death Benefits, Disability & Critical Illness Waiver, Total Permanent Disability, Inflation-linked cover, Critical Illness Cover (60 illnesses, 90-day waiting period), Terminal Illness Benefit, Return of Premium Option. |
| Bajaj Allianz Life eTouch II | Accidental Death Benefits, Life Stage Benefit (increased coverage after marriage/childbirth), Critical Illness Coverage (60 illnesses), Critical Illness Rider (60 conditions), Waiver of Premium on Permanent Disability (accident-related), Zero Cost Option |
| TATA AIA Sampoorna Raksha Promise | Accidental Death Benefit, Critical Illness Coverage (40 illnesses), Total Permanent Disability, Critical Illness Rider (40 illnesses), Waiver of Premium on Critical Illness/Permanent Disability, Life Stage Benefit, Partial Terminal Illness Payout |
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Conclusion
SBI Life Smart Wealth Assure might seem convenient with its single-premium setup and flexible fund options, but it falls into the same trap as most ULIPs—trying to juggle insurance and investment, and underperforming at both. The life cover is minimal, and the returns, after all the hidden charges, don’t justify the cost. If you’re looking to grow your money, go for mutual funds. If you want financial protection, buy a term plan. Mixing the two isn’t just inefficient—it’s costly. So while this plan might work for someone with particular needs, like if they are not eligible for a term plan, most people are better off keeping insurance and investment separate. Better protection, better returns.
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