SBI Life’s Smart Future Star is a participating child insurance savings plan that combines life cover for the child, an inbuilt Waiver of Premium on the parent, and a bonus-linked maturity value. It is designed for parents who prefer disciplined, long-term, conservative savings with protection built in, rather than high-return, low-cost investment structures.
🎯 What the Plan Offers
Smart Future Star is an individual, non-linked, participating life insurance savings product where the child is the life assured and the parent/guardian is the proposer. It aims to:
- Build a lump sum corpus for education, marriage, or other child-related goals.
- Provide life cover for the child.
- Ensure continuity of the plan even if something happens to the proposer, through the Waiver of Premium benefit.
The plan is positioned on three pillars:
- Security – life cover + waiver of premium.
- Savings – maturity sum assured plus bonuses.
- Flexibility – multiple premium terms, policy durations, and payout options.
⚡ Key Features & Benefits
- Life Cover for the Child: Death benefit is the higher of sum assured plus bonuses or 105% of premiums paid.
- Waiver of Premium: If the proposer dies or suffers Accidental Total Permanent Disability, future premiums are waived, and the plan continues.
- Maturity Benefit: On survival of the child till maturity, the sum assured plus bonuses is paid as lump sum, with options for instalments or deferred payout.
- Flexible Premium Terms: Choose 7, 10, or 12 years of premium payments, with policy terms ranging from 15 to 25 years.
- Policy Loans: Available once the policy acquires value, though loans reduce benefits if not repaid.
👨👩👧 Eligibility & Suitability
- Proposer age: 18–65 years.
- Child entry age: 30 days to 15 years.
- Child maturity age: 18–35 years (depending on term).
Best suited for:
- Parents seeking insurance-led, bonus-based savings rather than equity-heavy products.
- Families valuing the psychological comfort of Waiver of Premium, ensuring continuity for the child.
Where It Works Well
- Parents comfortable with defined premiums for 7–12 years and staying invested for 15–25 years.
- Families preferring bonus-linked savings over volatile equity or ULIP returns.
- Goals like college fees or marriage, where staggered payouts or deferred maturity options are useful.
- Tax efficiency under prevailing Income Tax Act provisions (subject to changes).
✅ Is It Right for You?
Smart Future Star is appropriate if you want:
- A bundled solution combining child life cover, waiver of premium, and long-term savings.
- Predictable premiums and a conservative path to a lump sum corpus.
It may not suit those prioritising maximum ROI, flexible asset allocation, or cost-efficient risk cover. Always compare benefit illustrations at 4% and 8% assumed returns against alternative strategies before committing.
Contact me for any help in getting a new insurance policy.