Sbi term insurance policy details for 5 years

Overview of SBI Term Insurance

SBI Life Insurance, a joint venture between the State Bank of India and BNP Paribas Cardif, is a trusted insurer in India with a claim settlement ratio of 93.09% (FY 2020-21). Term insurance plans from SBI Life are pure risk protection products that provide a death benefit to the nominee if the policyholder passes away during the policy term. Most plans do not offer maturity benefits unless specified, making them affordable with high coverage at low premiums.

A 5-year term is among the shortest policy terms available, suitable for short-term financial obligations like small loans, temporary income replacement, or specific life stages. Not all SBI term plans offer a 5-year term, so I’ll focus on those that do and clarify their applicability.

SBI Term Insurance Plans with a 5-Year Policy Term

Based on available information, the following SBI Life term insurance plans explicitly allow a 5-year policy term. Other plans (e.g., SBI Life Saral Swadhan+, SBI Life eIncome Shield) may have minimum terms of 10 years or more, so they are excluded unless specified otherwise.

1. SBI Life eShield Next

SBI Life eShield Next is an online, non-linked, non-participating, individual pure risk term insurance plan designed for comprehensive coverage with flexibility.

• Key Features:
  • Plan Options:
    • Level Cover: Fixed sum assured throughout the 5-year term.
    • Increasing Cover: Sum assured increases by 10% every 5 years (though less impactful in a 5-year term).
    • Level Cover with Future Proofing Benefit: Allows additional coverage for life events (e.g., marriage, childbirth), subject to underwriting.
  • Terminal Illness Benefit: If diagnosed with a terminal illness, the policyholder receives an accelerated death benefit.
  • Better Half Benefit: Upon the policyholder’s death, the spouse can purchase a term plan at a discounted premium (subject to conditions).
  • No Maturity Benefit: Pure risk cover with no payout if the policyholder survives the 5-year term.
  • Flexible Premium Payment: Regular pay (monthly, quarterly, half-yearly, yearly) or single premium options.
  • High Sum Assured Discounts: Lower premiums for higher coverage.
• Eligibility for 5-Year Term:
  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 65 years
  • Policy Term: 5 to 30 years (5-year term available)
  • Sum Assured: Minimum ₹25 lakhs, no upper limit (subject to underwriting)
  • Premium Payment Term: Matches the policy term (5 years for regular pay) or single premium.
• Riders Available:
  • Accidental Death Benefit Rider: Additional sum assured if death occurs due to an accident.
  • Accidental Total and Permanent Disability Rider: Benefit for disability caused by an accident.
  • Accelerated Critical Illness Rider: Lump sum on diagnosis of specified critical illnesses.
• Premium Estimate:
  • Premiums depend on age, sum assured, smoking status, and riders. For example, a 30-year-old non-smoker opting for ₹50 lakhs coverage may pay approximately ₹4,000–₹6,000 annually for a 5-year term (indicative; use SBI Life’s premium calculator for exact quotes).
  • Online purchase often reduces costs due to no intermediary commissions.
• Tax Benefits:
  • Premiums are eligible for deductions under Section 80C (up to ₹1.5 lakhs).
  • Death benefits are tax-free under Section 10(10D) of the Income Tax Act, 1961 (subject to conditions).

2. SBI Life Smart Shield

SBI Life Smart Shield is a non-linked, non-participating, individual pure risk term plan offering affordable and customizable coverage.

• Key Features:
  • Benefit Options:
    • Level Term Assurance: Fixed sum assured for the 5-year term.
    • Increasing Term Assurance: Sum assured increases by 5% annually (simple interest), though the short 5-year term limits this benefit’s impact.
  • No Maturity Benefit: Pure risk cover.
  • Flexible Premium Payment: Regular pay or single premium.
  • High Sum Assured Rebate: Discounts on premiums for higher coverage.
• Eligibility for 5-Year Term:
  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 60 years
  • Policy Term: 5 to 30 years (5-year term available)
  • Sum Assured: Minimum ₹25 lakhs, maximum based on underwriting
  • Premium Payment Term: 5 years (regular pay) or single premium.
• Riders Available:
  • Same as eShield Next (Accidental Death, Accidental Total and Permanent Disability, Accelerated Critical Illness).
• Premium Estimate:
  • For a 30-year-old non-smoker with ₹50 lakhs coverage, the annual premium may range from ₹4,500–₹7,000 for a 5-year term (indicative; verify with SBI Life’s calculator).
  • Smokers or those with medical conditions may pay higher premiums.
• Tax Benefits: Same as eShield Next.

3. SBI Life Saral Shield

SBI Life Saral Shield is a non-linked, non-participating, individual pure risk term plan designed for simplicity, particularly for loan protection.

• Key Features:
  • Sub-Options:
    • Level Term Protection: Fixed sum assured for the 5-year term.
    • Decreasing Term Insurance (Loan Protection): Sum assured decreases to match an outstanding loan, ideal for short-term loans.
    • Decreasing Term Insurance (Family Protection): Sum assured decreases but ensures family coverage.
  • No Maturity Benefit: Pure risk cover.
  • Premium Payment: Regular pay or single premium.
• Eligibility for 5-Year Term:
  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 60 years
  • Policy Term: 5 to 30 years (5-year term available)
  • Sum Assured: Minimum ₹7.5 lakhs, maximum based on underwriting
  • Premium Payment Term: 5 years (regular pay) or single premium.
• Riders Available:
  • Accidental Death Benefit Rider
  • Accidental Total and Permanent Disability Rider
  • Accelerated Critical Illness Rider
• Premium Estimate:
  • For a 30-year-old non-smoker with ₹25 lakhs coverage (level term), the premium may be ₹3,500–₹5,500 annually (indicative).
  • Decreasing term options may have slightly lower premiums due to reducing coverage.
• Tax Benefits: Same as above.

4. SBI Life Grameen Bima

SBI Life Grameen Bima is a non-linked, non-participating, individual pure risk term plan aimed at low-income and rural customers, offering affordable coverage.

• Key Features:
  • Affordable Premiums: Single premium starting at ₹300.
  • Coverage Range: ₹10,000 to ₹50,000 (lower than other plans, suitable for basic needs).
  • No Maturity Benefit: Pure risk cover.
  • Simplified Enrolment: Minimal documentation, no medical tests in most cases.
• Eligibility for 5-Year Term:
  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 50 years
  • Policy Term: 5 to 20 years (5-year term available)
  • Sum Assured: ₹10,000 to ₹50,000
  • Premium Payment: Single premium only.
• Riders: No riders available.
• Premium Estimate:
  • For a 30-year-old with ₹50,000 coverage, the single premium may be ₹1,000–₹2,000 (indicative, varies by age and term).
• Tax Benefits: Same as above, though the low premium may limit Section 80C benefits.

Key Considerations for a 5-Year Term

A 5-year term is ideal for:

• Short-term financial obligations (e.g., a 5-year personal loan or business loan).
• Temporary income replacement during a specific period (e.g., until a child becomes financially independent).
• Testing term insurance with a low commitment before opting for a longer-term plan.

However, note that:

• Limited Maturity Benefits: Most plans (except Saral Swadhan+, which has a minimum 10-year term) offer no payout if you survive the 5-year term.
• Lower Sum Assured for Short Terms: Some plans (e.g., Grameen Bima) have low coverage limits, which may not suffice for high-income individuals.
• Premium Costs: Short-term plans may have higher annualized premiums compared to longer terms due to fixed administrative costs.

Benefits of SBI Term Insurance for a 5-Year Term

• Affordable Premiums: Low-cost coverage, especially for plans like Grameen Bima or Saral Shield.
• High Claim Settlement Ratio: SBI Life’s 93.09% ratio (FY 2020-21) ensures reliability.
• Tax Benefits: Premiums qualify for Section 80C deductions, and death benefits are tax-free under Section 10(10D).
• Flexible Payment Options: Choose single premium or regular pay (monthly, quarterly, half-yearly, yearly).
• Riders for Enhanced Protection: Add accidental death, disability, or critical illness coverage (except Grameen Bima).
• Online Purchase: Plans like eShield Next can be bought online without intermediaries, reducing costs.
• Trusted Brand: Backed by SBI, ensuring credibility and a vast network of over 800 branches.
• Customer Support: 24/7 assistance via phone (1800-267-9090), email (info@sbilife.co.in), or the SBI Life Smart Care app.

Eligibility and Documentation

Eligibility for 5-Year Term Plans

• Age: Minimum 18 years; maximum varies (50 for Grameen Bima, 60 for Smart Shield/Saral Shield, 65 for eShield Next).
• Sum Assured: Ranges from ₹10,000 (Grameen Bima) to ₹25 lakhs minimum (eShield Next, Smart Shield) with no upper limit for most plans (subject to underwriting).
• Medical Tests: May be required based on age, sum assured, and health status. Grameen Bima typically waives medical tests due to low coverage.

Documents Required

• Photo ID Proof: Aadhar card, PAN card, passport, or driving license.
• Age Proof: Birth certificate, Aadhar card, or passport.
• Address Proof: Utility bill, Aadhar card, or voter ID.
• Income Proof: Bank statement or salary slips (if required for high sum assured).
• Medical Records: If mandated by underwriting.

For claims:

• Death certificate, original policy documents, nominee’s KYC, medical records (for natural death), or FIR/post-mortem report (for accidental death).

Premium Calculation

Premiums for a 5-year term depend on:

• Age: Younger individuals pay less.
• Sum Assured: Higher coverage increases premiums, but discounts apply for large sums.
• Smoking Status: Smokers pay higher premiums.
• Riders: Additional riders increase costs.
• Payment Mode: Single premium is a one-time payment; regular pay spreads costs over 5 years.

Indicative Premiums (for a 30-year-old non-smoker, ₹50 lakhs coverage, 5-year term):

• eShield Next: ₹4,000–₹6,000/year (level cover).
• Smart Shield: ₹4,500–₹7,000/year.
• Saral Shield: ₹3,500–₹5,500/year (level term).
• Grameen Bima: ₹1,000–₹2,000 (single premium for ₹50,000 coverage).

Use SBI Life’s online premium calculator on www.sbilife.co.in or platforms like Policybazaar for precise quotes.

Claim Settlement Process

SBI Life ensures a streamlined claim process:

Online

1. Visit www.sbilife.co.in and navigate to the claims section.
2. Fill out the claim form with policy and nominee details.
3. Upload documents (death certificate, policy documents, nominee’s KYC).
4. Submit and track the claim status online.

Offline

1. Visit an SBI Life branch with a claim form and documents.
2. Submit for verification.
3. Claim amount is credited to the nominee’s account within 30 days (per PolicyX).

Contact: Call 1800-267-9090 or email claims@sbilife.co.in for assistance.

How to Purchase a 5-Year SBI Term Insurance Plan

Online

1. Visit www.sbilife.co.in or platforms like Policybazaar, InsuranceDekho, or PolicyX.
2. Select a plan (e.g., eShield Next, Saral Shield).
3. Enter details (age, sum assured, 5-year term, riders).
4. Calculate premium and pay via card, net banking, or UPI.
5. Receive policy documents via email.

Offline

1. Visit an SBI Life branch or contact an agent.
2. Submit the application form and documents.
3. Pay the premium (cash, cheque, or digital).
4. Receive the policy document.

Exclusions

Claims may be rejected for:

• Suicide within the first year.
• Death due to undisclosed pre-existing conditions.
• Death from hazardous activities (e.g., adventure sports, criminal acts).
• Death due to war, terrorism, or civil commotion.

Review the policy document for specific exclusions.

Why Choose SBI Term Insurance for a 5-Year Term?

• Affordability: Low premiums for short-term coverage, especially with Grameen Bima.
• Flexibility: Multiple plan options (level, decreasing, increasing cover) and payment modes.
• Reliability: High claim settlement ratio and SBI’s trusted brand.
• Tax Savings: Maximize deductions under Section 80C and tax-free death benefits.
• Convenience: Online purchase and management via the SBI Life Smart Care app or website.

Tips for Choosing a 5-Year SBI Term Plan

1. Evaluate Coverage Needs: Ensure the sum assured covers short-term liabilities (e.g., 5x annual income or outstanding loans).
2. Choose the Right Plan:
   • eShield Next: For high coverage and flexibility.
   • Saral Shield: For loan protection or simple coverage.
   • Grameen Bima: For low-income individuals needing basic protection.
3. Consider Riders: Add accidental death or critical illness riders for broader protection.
4. Compare Premiums: Use SBI Life’s calculator or platforms like Policybazaar.
5. Disclose Health Details: Avoid claim rejections by providing accurate medical history.
6. Plan for Renewal: A 5-year term is short; consider renewing or opting for a longer-term plan later.

Conclusion

SBI Life Insurance offers robust term insurance plans for a 5-year term, including eShield Next, Smart Shield, Saral Shield, and Grameen Bima. These plans cater to diverse needs, from high coverage for urban professionals to affordable protection for rural customers. With low premiums, flexible payment options, tax benefits, and a high claim settlement ratio, SBI term plans ensure financial security for short-term goals. To purchase, visit www.sbilife.co.in or contact SBI Life at 1800-267-9090.

Disclaimer: Verify plan details, premiums, and terms on the official SBI Life website. Consult a tax advisor for tax benefits. Exclusions and conditions apply.