A Classic Case of Insurance Misselling in India

Morpheus Insurance

One of our colleagues received the following SMS the other day:

“SBI-I Pension Plan PAY Rs-1 Lac PA For 5Yrs GET 10th Yr Rs-12,23,175 Lacs or PENSION Rs-11000 pm LIFE LONG. 15 Lacs SA. Closing 20th Apr.”

Such bold claims piqued our curiosity, so we called the number to make an inquiry. We were told that the plan in question is a Unit-Linked Insurance Plan (ULIP) (1), and were asked to check out the SBI Smart Wealth Builders Plan and the SBI Retire Smart Plan.

Check them out we did, and here’s what we found out:

SMSSBI Smart Wealth Builder (2)

SBI Retire Smart (3)

Guaranteed Returns

Offers 12,23,175 as returns in the 10th year

ULIP, where returns are market linked. No guaranteed returns mentioned in the brochure. Investment risk borne by the policyholder.

ULIP, where returns are market linked. Guaranteed returns: Rs. 5,05,000

Annuity(4) Option

11,000 per month, life long

Annuity option available, based on the fund value and term of the annuity, with the maturity benefit remaining the same

Annuity option may be availed at the end of the policy term at the prevailing rates. Further details not provided in brochure

Death Benefit

“Rs. 15 lakhs SA” (SA is usually short for Sum Assured)

Assured : Rs. 10 lakhs (Sum Assured)

Assured: 105% of premiums paid to date (if death occurs in the first year, Rs. 1.05 lakh, if in the second year Rs. 2.1 lakh etc.)

Closing Date

20th April

No indication of closing date on the website/brochure

No indication of closing date on the website/brochure

It’s rather unlikely that this ULIP sets the market on fire and provides the policyholder with a corpus that will let her retire in style and never think about money again. The promotional SMS, however, suggests that the claimed benefits are assured, which is DEFINITELY NOT the case.

Thanks No Thanks Insurance

Have you received any message of this sort as well?  Tell us in the comments, and we’ll find out if it’s genuine, or if it’s someone looking to prey on unsuspecting customers.


  1. A Unit Linked Insurance Plan (ULIP) is an insurance product that has an investment component as well, where the value of the insurance cover is linked to the value of the investment component.
  2. The SBI Smart Wealth Builder brochure may be found here.
  3. The SBI Retire Smart brochure may be found here.
  4. An annuity option allows you to receive the proceeds of your investment in the form of annual payments, rather than a one-time lumpsum.