ULIP trap – SBI Life Smart performer

POSTED BY Kumar_G ON October 9, 2013 2:16 pm COMMENTS (15)

Hi Everyone !

I got into a ULIP  trap i.e SBI Life Smart performer. I already paid 2 premiums (Rs 100000/-) out of 5 and Nov 4th is due for my 3rd premium.

My current fund value is Rs.97048.59.

SBI Life Daily Protect Fund – III




SBI Life Index Fund






Fund value(Rs.)


  * as on 08-OCT-2013          Highest NAV for SBI Life Daily Protect Fund – III is 11.99

 I realized now, I did a mistake by choosing this product with a wrong impression given by SBI manager. Anyway, I don’t want to blame him for my ignorance. He is there to market his products and he did that at its best J.

Forget about Insurance, will it make sense to continue this assuming it is part of debt investment for long term. Can anyone give some rough  figures on returns if I continue full term.

If I surrender now,  I’ll get this money after 2yrs with around 3 to 4 % interest with discontinue charges stuff like that.

Should I continue with this or drop ?



15 replies on this article “ULIP trap – SBI Life Smart performer”

  1. brahmanandDubey says:

    Customer no.25395194
    Policy no. 44004653607
    Product name-sbi life smart performer
    Kindly make me aware about the current maturity value

    1. Sir, more info is needed for that. Better contact the company directly

  2. sunita says:

    Dear Ansal

    I have taken this policy and completed 5years total premium is paid can i withdraw this amount immediately. If i have withdrawn how much i will get. please let me know.

    1. Yes you can withdraw all the money. You should check what is the market value of your investments . Check with your agent/company

  3. ashalanshu says:

    Dear Kumar, NO. surrender amount is different than the tax benefit claimed on prem. paid. As surrender is done by you in 3Y, the surrender value is not eligible for tax free status.



    1. Kumar_G says:

      Thanks Ashal 🙂

  4. ashalanshu says:

    Dear Kumar, I can not comment on knwoedge level of the persons mentioned by you. Improving my own knowledge is in my hand and I’m doing that. 🙂



    1. Kumar_G says:

      Dear Ashal, If I pay tax reversal 10k amount as other income and file IT this year, Then should I consider my surrender amount 1Lac is tax free which ‘ll receive only after 5yrs lock-in period i.e in 2016?


  5. ashalanshu says:

    Dear Kumar, The tax saving was 10K, hence this year the Tax to be paid by you ‘ll be 10K (same amount).



    1. Kumar_G says:

      Dear Ashal, Thanks for your response. So, I’ve booked heavy lose and learned a costly lesson.

      Wah ! salute to SBI life employees ! The above calculation is given by SBI life manager after asking a question on tax reversal upon surrendering the policy .One thing I’m still not able to understand, why SBI LIfe employees including mangers don’t have proper knowledge on these ULIP products and tax implications.

      It’s being a passion, you and other forum members are helping out many members in this forum/country, why so called insurance employees are not able to do that though they are paying for it in the form of salary.

      Financial ignorance can cost us heavily !!


  6. ashalanshu says:

    Dear Kumar, as this is a ULIP, please complete 3Y of holding from starting date to avoid 80C claimed benefit reversal.



    1. Kumar_G says:

      Thanks Ashal 🙂

      1. Kumar_G says:

        Hi Ashal,

        Finally I surrender this policy, but as per SBI life I’ll receive my surrender money in 2015 which will earn 3.4% Anum during this lock-in period.
        For FY 2010-2011(50k)and FY 2011-2012 (50k), I got total 1 lac 80C tax exemption and as it completed only 2Y of holding from starting date, I need to fill IT for this FY2013-14 right?

        Can you please correct my to understanding on this tax part.

        I’m in 10% tax slab and earning from tax exemption for 1lac is 10k. So this 10k I need to show income and file the returns

        Tax exemption amount = 1lac
        So, earning from tax exemption=5k+5k =10k
        Tax on 10k income should be= 1k

        So, I need to declare 10k as income and pay 1k self tax and file the return during FY13-14.


  7. ashalanshu says:

    Dear Kumar, w’d youy like to amputate a finger today or an arm tomorrow? The answer is simple. Cut back your losses now. Invest the 3rd prem. elsewhere to earn better return.



    1. Kumar_G says:

      Dear Ashal, Thanks for quick reply. I’ve decided to surrender the policy.
      One question, for last two years I got 80C tax exemption for this policy, if I surrender now, will my previous tax paid is valid?


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