Smart Value Income Plan

What this product is

A traditional savings plan that pays out recurring cash bonuses (or lets them accumulate) on top of a guaranteed minimum maturity value, alongside built-in life cover.

You might need this if…

• You want predictable cash bonus payouts (annual/half-yearly/quarterly/monthly) rather than one lump sum at the end
• You'd rather let bonuses accumulate and compound at a benchmark-linked rate than take them as cash, if you don't need the money right away
• You want a policy loan option available if you hit a cash crunch, rather than being forced into a full surrender
• You want the option to pause premiums during a spell of income loss without immediately losing death cover

How it actually works

• Entry age 30 days to 65 years; minimum premium around ₹24,000/year
• Choose Limited Pay (5-12 yr premium term, 20-50 yr policy term), Regular Pay (10-30 yrs, premium term = policy term), or Single Pay (10-50 yr term)
• Pick Cash Bonus (take declared bonuses as cash, or park them in a sub-wallet earning a set rate) or Accumulating Cash Bonus (bonuses compound at a benchmark-linked rate) at outset
• Death benefit is Sum Assured on Death plus accrued bonuses, with a guaranteed floor of 105% of total premiums paid
• Maturity benefit is a Sum Assured on Maturity (a multiple of total premiums payable) plus accrued bonuses
• Policy loans are available after year 1 (up to 80% of surrender value); a premium-postponement feature helps during unemployment/income loss

Worked example

Worth knowing before you decide

• Illustrated 4% and 8% return scenarios are not upper/lower limits of what you might actually get - bonuses are declared yearly and can be zero in a bad year
• Early surrender usually returns less than total premiums paid; a reduced paid-up status kicks in if you stop paying after year 1
• Revival after lapse is allowed for up to 5 years but comes with interest charges and fresh medical underwriting
• Paying half-yearly/quarterly/monthly instead of annually adds a modal loading, effectively raising the total outlay

Official source

⌟ Official product brochure

Learn about this category

Read the full traditional life insurance explainer → · See all traditional savings products →