sbi term insurance policy details

Comprehensive Guide to SBI Term Insurance Policy Details

SBI Life Insurance, a joint venture between the State Bank of India and BNP Paribas Cardif, is one of India’s leading life insurance providers, known for its trusted brand, extensive network, and customer-centric approach. Among its diverse offerings, SBI’s term insurance plans stand out for providing affordable, flexible, and comprehensive financial protection. This blog post dives deep into the details of SBI term insurance policies, covering their features, benefits, plan options, riders, eligibility, claim processes, and more, to help you make an informed decision.

What is Term Insurance?

Term insurance is a pure life insurance product that provides financial coverage for a specified period (policy term). If the policyholder passes away during this term, the nominee receives a death benefit, ensuring the family’s financial security. Unlike other insurance products, traditional term plans typically do not offer maturity benefits unless specified, making them cost-effective with low premiums for high coverage.

SBI Life Insurance offers a range of term insurance plans tailored to diverse financial needs, from basic protection to plans with additional benefits like premium returns or critical illness coverage. Below, we explore the key SBI term insurance plans, their features, and how they cater to different customer requirements.

Key SBI Term Insurance Plans

SBI Life Insurance provides several term insurance plans, each designed to address specific needs. Here’s a detailed look at the most prominent ones:

1. SBI Life eShield Next

SBI Life eShield Next is a flagship online term insurance plan offering extensive coverage and flexibility. It is an individual, non-linked, non-participating, pure risk product designed to provide financial immunity to your family in an ever-changing world.

• Key Features:

  • Choice of Plan Options:
    • Level Cover: The sum assured remains constant throughout the policy term.
    • Increasing Cover: The sum assured increases by 10% every 5 years to account for inflation and growing responsibilities.
    • Level Cover with Future Proofing Benefit: Combines level cover with additional benefits like life stage protection (e.g., increased coverage for milestones like marriage or childbirth).
  • Whole Life Option: Provides coverage up to age 100, ensuring lifelong protection.
  • Better Half Benefit: If the policyholder passes away, the spouse can avail of a term plan at a discounted premium without medical underwriting (subject to conditions).
  • Terminal Illness Benefit: If diagnosed with a terminal illness, the policyholder receives an accelerated death benefit to manage expenses.
  • Flexible Premium Payment: Options for regular pay, limited pay, or single premium.
  • High Sum Assured Discounts: Lower premiums for higher coverage amounts.

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 65 years
  • Policy Term: 5 to 30 years (or up to age 100 for whole life option)
  • Sum Assured: Minimum ₹25 lakhs, no upper limit (subject to underwriting)

• Premium Payment Frequency: Monthly, quarterly, half-yearly, or yearly.

• Tax Benefits: Premiums are eligible for deductions under Section 80C, and the death benefit is 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 versatile term plan offering affordability and customizable coverage options. It is an individual, non-linked, non-participating, pure risk product.

• Key Features:

  • Two Benefit Options:
    • Level Term Assurance: Fixed sum assured throughout the policy term.
    • Increasing Term Assurance: Sum assured increases by 5% annually (simple interest) to counter inflation.
  • Flexible Premium Payment: Regular or single premium options.
  • No Maturity Benefit: Pure risk cover with no payout if the policyholder survives the term.
  • Tax Benefits: As per prevailing tax laws (consult a tax advisor).

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 60 years
  • Policy Term: 5 to 30 years
  • Sum Assured: Minimum ₹25 lakhs, maximum based on underwriting.

• Premium Calculation: Depends on age, sum assured, policy term, and smoking status (smokers pay higher premiums due to increased risk).

3. SBI Life Saral Shield

SBI Life Saral Shield is designed for simplicity and maximum coverage, particularly for loan protection. It is an individual, non-linked, non-participating, pure risk product.

• Key Features:

  • Three Sub-Options:
    • Level Term Protection: Fixed sum assured throughout the term.
    • Decreasing Term Insurance (Loan Protection): Sum assured decreases in line with outstanding loan amounts.
    • Decreasing Term Insurance (Family Protection): Sum assured decreases but ensures family protection.
  • Flexible Premium Payment: Regular or single premium.
  • No Maturity Benefit: Pure risk cover.

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 60 years
  • Policy Term: 5 to 30 years
  • Sum Assured: Minimum ₹7.5 lakhs, maximum based on underwriting.

4. SBI Life Saral Swadhan+

This plan is unique as it offers maturity benefits in addition to death benefits, making it appealing for those seeking a return of premiums. It is an individual, non-linked, non-participating, life insurance savings product with a return of premium feature.

• Key Features:

  • Maturity Benefit: 100% of total premiums paid for a 10-year term, or 115% for a 15-year term (excluding extra premiums and taxes).
  • Death Benefit: Sum assured paid to the nominee if the policyholder passes away during the term.
  • Fixed Life Cover: Consistent coverage throughout the policy term.
  • High Sum Assured Rebate: Discounts on premiums for higher coverage.

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 55 years
  • Policy Term: 10 or 15 years
  • Sum Assured: Minimum ₹10 lakhs, maximum ₹50 lakhs.

5. SBI Life eIncome Shield

This is a pure term insurance plan focused on income replacement, ensuring a steady monthly income for the family in case of the policyholder’s demise. It is a non-participating, traditional income protection plan.

• Key Features:

  • Monthly Income Payout: Minimum ₹25,000 per month to the nominee.
  • Increasing Income Option: Monthly payout increases annually to combat inflation.
  • Flexible Premium Payment: Regular pay, monthly, or annually via ECS.
  • No Maturity Benefit: Pure risk cover.

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 50 years
  • Policy Term: 10 to 35 years
  • Maximum Maturity Age: 60 years.

6. SBI Life Grameen Bima

Designed for low-income and rural populations, this plan offers affordable coverage with simplified enrolment. It is a pure-term insurance plan with no riders.

• Key Features:

  • Affordable Premiums: Starting as low as ₹300 (single premium).
  • Coverage Range: ₹10,000 to ₹50,000.
  • Single Premium Payment: No recurring payments.
  • No Maturity Benefit: Pure risk cover.

• Eligibility:

  • Minimum Entry Age: 18 years
  • Maximum Entry Age: 50 years
  • Policy Term: 5 to 20 years.

Add-On Riders for Enhanced Coverage

SBI term insurance plans can be customized with riders to enhance coverage. These add-ons require additional premiums but provide extra protection. Common riders include:

1. Accidental Death Benefit Rider:

   • Provides an additional sum assured if the policyholder dies due to an accident.
   • Minimum Sum Assured: ₹25,000 or the base plan’s sum assured (whichever is lower).
   • Eligibility: Ages 18 to 65 years.

2. Accidental Total and Permanent Disability Rider:

   • Pays a benefit if the policyholder suffers total and permanent disability due to an accident (confirmed 180 days post-accident).
   • Sum Assured: Capped at ₹50 lakhs or the base sum assured.

3. Accelerated Critical Illness Rider:

   • Covers specified critical illnesses, providing a lump sum upon diagnosis.
   • Enhances financial security for medical expenses.

4. Better Half Benefit (specific to eShield Next):

   • Allows the spouse to purchase a term plan at a discounted rate after the policyholder’s death.

These riders are not available with all plans (e.g., Grameen Bima has no riders). Check the specific plan’s terms for rider availability.

Benefits of SBI Term Insurance Plans

SBI term insurance plans offer a host of benefits that make them a preferred choice for financial protection:

• Affordable Premiums: Low-cost plans suitable for all income groups, with high sum assured discounts.
• High Claim Settlement Ratio: SBI Life reported a claim settlement ratio of 93.09% for FY 2020-21, indicating reliability.
• Flexible Premium Payment: Options for single, regular, or limited premium payments, with frequencies like monthly, quarterly, half-yearly, or yearly.
• Tax Benefits: Premiums qualify for deductions under Section 80C (up to ₹1.5 lakhs), and death benefits are tax-free under Section 10(10D) (subject to conditions).
• Long Policy Terms: Coverage up to age 100 with plans like eShield Next.
• Customizable Coverage: Riders and plan options (level, increasing, or decreasing cover) cater to diverse needs.
• Online Purchase: Plans like eShield Next can be bought seamlessly online, with no medical tests in some cases (subject to underwriting).
• Maturity Benefits (Select Plans): Plans like Saral Swadhan+ offer a return of premiums if the policyholder survives the term.
• Extensive Branch Network: With over 800 branches across India, SBI Life ensures easy access for claims and support.
• Customer-Centric Service: 24/7 customer care via phone (1800-267-9090), email (info@sbilife.co.in), or the SBI Life Smart Care app.

Eligibility and Documentation

Eligibility Criteria

• Age: Minimum entry age is typically 18 years; maximum entry age varies (e.g., 65 for eShield Next, 55 for Saral Swadhan+).
• Policy Term: Ranges from 5 to 30 years, with whole life options up to age 100.
• Sum Assured: Minimum ranges from ₹10,000 (Grameen Bima) to ₹25 lakhs (eShield Next); maximum depends on underwriting.
• Medical Tests: May be required based on age, sum assured, and health status, but some plans (e.g., group term plans via Pazcare) waive medical tests.

Documents Required

To purchase an SBI term insurance plan, you typically need:

• Photo ID Proof: Passport, Aadhar card, PAN card, or driving license.
• Age Proof: Passport, Aadhar card, PAN card, or driving license.
• Address Proof: Utility bill, passport, voter ID, or ration card.
• Income Proof: Bank statement or last three months’ salary slips (for salaried individuals).
• Medical Records: If requested by the insurer.

For claims, additional documents may include:

• Death certificate
• Original policy documents
• Claimant’s identity and residence proof
• Medical records (for natural death)
• FIR and post-mortem report (for accidental death)

Premium Calculation

Premiums for SBI term insurance plans depend on factors like:

• Age: Younger policyholders pay lower premiums.
• Sum Assured: Higher coverage increases premiums, but discounts apply for large sums.
• Policy Term: Longer terms may have higher premiums.
• Smoking Status: Smokers pay higher premiums due to health risks.
• Riders: Additional riders increase the premium.
• Plan Type: Single premium plans have a one-time cost, while regular pay spreads the cost.

SBI Life offers an online premium calculator on its website (e.g., for eShield Next or Smart Shield). Enter details like age, gender, sum assured, policy term, and premium frequency to get an estimate. For example, a 25-year-old male opting for ₹1 crore coverage under eShield Next may pay as low as ₹449/month (as per Policybazaar). Always verify quotes on the official SBI Life website or through authorized platforms like Policybazaar or InsuranceDekho.

Claim Settlement Process

SBI Life Insurance is known for its efficient claim settlement process, with a claim settlement ratio of 93.09% in FY 2020-21. Here’s how to file a claim:

Online Claim Process

1. Visit the SBI Life Insurance website (www.sbilife.co.in).
2. Navigate to “Services – Existing Customers” or the claims section.
3. Fill out the online claim form with policy details and personal information.
4. Upload required documents (e.g., death certificate, policy documents, nominee’s KYC).
5. Submit the form. Once verified, the claim amount is transferred to the nominee’s registered bank account.

Offline Claim Process

1. Visit the nearest SBI Life branch with a duly filled claim form and supporting documents.
2. Submit the documents for verification.
3. After approval (within 30 days, as per PolicyX), the claim amount is deposited into the nominee’s account.

Documents for Claim

• Natural Death: Death claim form, death certificate, original policy documents, nominee’s identity and residence proof, medical records, and bank details.
• Accidental Death: Additional documents like FIR and post-mortem report.

For assistance, contact SBI Life’s customer care at 1800-267-9090 or email claims@sbilife.co.in.

How to Purchase SBI Term Insurance

SBI term insurance plans can be purchased online or offline:

Online Purchase

1. Visit the SBI Life Insurance website (www.sbilife.co.in) or authorized platforms like Policybazaar, InsuranceDekho, or PolicyX.
2. Select the desired plan (e.g., eShield Next, Smart Shield).
3. Fill in personal details (age, gender, occupation, medical history, etc.).
4. Choose the sum assured, policy term, premium frequency, and riders (if any).
5. Use the premium calculator to view the cost.
6. Make the payment via debit/credit card, net banking, or UPI.
7. Receive policy documents via email after verification.

Offline Purchase

1. Visit an SBI Life branch or contact an authorized agent.
2. Discuss your requirements and select a plan.
3. Submit the application form and required documents.
4. Pay the premium through available modes (cash, cheque, or digital).
5. Receive the policy document upon approval.

Policy Management

SBI Life offers convenient tools to manage your policy:

• SBI Life Smart Care App: Check policy status, pay premiums, download receipts, and access self-service options.
• Online Portal: Log in to the SBI Life website with your policy number and date of birth to manage your policy.
• Premium Payment: Pay online via the website, app, or at SBI branches. Modes include ECS, NACH, credit/debit cards, or POS terminals at select branches.
• Policy Surrender: Submit a surrender form with KYC documents and original policy documents at an SBI Life branch. Surrender value applies only to plans like Saral Swadhan+.
• Nominee Change: Submit a Change of Nomination form at an SBI Life branch or central processing center.

Exclusions

SBI term insurance plans have certain exclusions where the death benefit is not payable, including:

• Death due to suicide within the first year of the policy.
• Death due to pre-existing conditions not disclosed at the time of purchase.
• Death due to participation in hazardous activities (e.g., adventure sports, criminal activities).
• Death due to war, terrorism, or civil commotion.

Always read the policy document to understand specific exclusions.

Why Choose SBI Term Insurance?

SBI term insurance plans are a compelling choice for several reasons:

• Trusted Brand: Backed by the State Bank of India, SBI Life enjoys high credibility.
• Affordable and Flexible: Low premiums, customizable plans, and flexible payment options suit various budgets.
• Comprehensive Coverage: High sum assured, long policy terms, and riders ensure robust protection.
• High Claim Settlement Ratio: A reliable track record of settling claims promptly.
• Tax Savings: Significant tax benefits enhance the financial appeal.
• Digital Convenience: Online purchase, premium payment, and policy management make the process hassle-free.
• Customer Support: 24/7 assistance via phone, email, SMS, or online chat, with a vast branch network.

Tips for Choosing the Right SBI Term Insurance Plan

1. Assess Your Needs: Calculate the coverage required based on your annual income (at least 10x), liabilities (e.g., loans), and future expenses (e.g., child’s education, marriage). Factor in inflation, as suggested by Amit Jhingran, MD & CEO of SBI Life.
2. Choose the Right Plan Option: Opt for increasing cover (e.g., eShield Next) if you expect rising responsibilities, or level cover for consistent protection.
3. Consider Riders: Add riders like accidental death or critical illness for enhanced protection, especially if you have specific risks.
4. Compare Premiums: Use SBI Life’s premium calculator or platforms like Policybazaar to compare quotes across plans.
5. Check Policy Term: Ensure the term aligns with your income-earning years or financial obligations (e.g., loan tenure).
6. Disclose Health Information: Be truthful about medical history to avoid claim rejections.
7. Review Exclusions: Understand what’s not covered to avoid surprises during claims.

Frequently Asked Questions (FAQs)

1. Does SBI term insurance require medical tests?

   • Medical tests may be required based on age, sum assured, and health status. Some plans, like group term plans via Pazcare, may not require tests (subject to terms).

2. Can I cancel an SBI term insurance policy?

   • Yes, submit a surrender form with relevant documents at an SBI Life branch. Note that pure term plans have no surrender value, but plans like Saral Swadhan+ may return premiums.

3. How can I check my policy status?

   • Log in to the SBI Life e-portal with your customer ID, date of birth, and policy száma. Alternatively, use the SBI Life Smart Care app or send an SMS to 56161/9250001848 in the format “POLSTATUS [Policy Number].”

4. What is the grace period for premium payment?

   • 30 days for yearly, half-yearly, or quarterly payments; 15 days for monthly payments.

5. Are there maturity benefits in SBI term plans?

   • Most plans (e.g., eShield Next, Smart Shield) offer no maturity benefits. However, Saral Swadhan+ provides a return of 100% or 115% of premiums paid.

Conclusion

SBI term insurance plans offer a robust solution for securing your family’s financial future. With options like eShield Next, Smart Shield, Saral Shield, Saral Swadhan+, eIncome Shield, and Grameen Bima, SBI Life caters to diverse needs, from high-net-worth individuals to low-income rural customers. The plans combine affordability, flexibility, and comprehensive coverage, backed by a high claim settlement ratio and a trusted brand. Whether you seek lifelong protection, income replacement, or premium returns, SBI has a plan for you.

To choose the best plan, assess your financial goals, compare premiums, and consider riders for added protection. Visit the SBI Life Insurance website (www.sbilife.co.in) or authorized platforms like Policybazaar, InsuranceDekho, or PolicyX to explore and purchase a plan. For personalized assistance, contact SBI Life’s customer care at 1800-267-9090 or visit a nearby branch.

By investing in an SBI term insurance plan, you can ensure peace of mind, knowing your loved ones are financially secure, no matter what life brings.

Disclaimer: Always consult a tax advisor for tax benefits and read the policy document carefully for terms, conditions, and exclusions. Premiums and features are subject to change; verify details on the official SBI Life website.