SBI eShield Next vs Smart Shield: Which SBI Term Insurance Plan is Best in 2025?

SBI eShield Next vs Smart Shield: Which SBI Term Insurance Plan is Best in 2025?

Choosing the right SBI Term Insurance plan in 2025 is crucial for securing your family’s financial future. SBI Life Insurance, backed by the State Bank of India and boasting a 99.20% claim settlement ratio in FY 2023-24, offers two popular plans: SBI Life eShield Next and SBI Life Smart Shield. Both provide affordable, high-coverage options like ₹1 crore, but they cater to different needs with unique features. This article compares eShield Next and Smart Shield across premiums, benefits, eligibility, and more to help you decide which SBI Term Insurance plan is best for you.

Overview of SBI Term Insurance Plans

SBI Term Insurance plans are pure-risk life insurance products that pay a sum assured to the nominee if the policyholder passes away during the policy term. Both eShield Next and Smart Shield are non-linked, non-participating plans, offering high coverage at low premiums with no maturity benefits. However, their features, flexibility, and target audience differ, making a detailed comparison essential.

SBI Life eShield Next

  • Type: Online, customizable term plan with whole-life coverage options.
  • Key Features: Three variants (Level Cover, Increasing Cover, Level Cover with Future Proofing Benefit), terminal illness benefit, and Better Half Benefit for spouse coverage.
  • Best For: Tech-savvy buyers seeking long-term, flexible coverage up to age 100.

SBI Life Smart Shield

  • Type: Flexible term plan with level or increasing coverage options.
  • Key Features: Two variants (Level Term Assurance, Increasing Term Assurance), high sum assured discounts, and optional riders.
  • Best For: Budget-conscious individuals needing affordable, adjustable coverage.

Comparison of SBI eShield Next vs Smart Shield

Below is a detailed comparison of SBI eShield Next and Smart Shield across key parameters to help you choose the best SBI Term Insurance plan.

Parameter SBI Life eShield Next SBI Life Smart Shield
Plan Type Non-Linked, Non-Participating, Pure Risk Non-Linked, Non-Participating, Pure Risk
Sum Assured ₹50 lakh – ₹25 crore ₹25 lakh – No upper limit
Policy Term 5–50 years (up to age 100 with Whole Life option) 5–40 years
Entry Age 18–65 years 18–60 years
Premium (₹1 crore, 30-year term, 30-year-old non-smoker) ~₹6,500–₹7,500/year (Level Cover, online) ~₹7,000–₹8,000/year (Level Term)
Premium Payment Options Single, Limited (5/10 years), Regular Regular, Limited (5/10 years)
Variants - Level Cover: Fixed sum assured
- Increasing Cover: 10% increase every 5 years
- Level Cover with Future Proofing: Increases for life events (marriage, childbirth)		 - Level Term Assurance: Fixed sum assured
- Increasing Term Assurance: 5% annual increase
Key Benefits - Whole life cover up to 100 years
- Better Half Benefit (spouse coverage)
- Terminal Illness Benefit (up to ₹2 crore)
- Future Proofing Benefit		 - High sum assured discounts
- Increasing Term adjusts for inflation
- Affordable premiums
Riders Available - Accidental Death Benefit
- Accidental Total/Permanent Disability		 - Accidental Death Benefit
- Accidental Total/Permanent Disability
Maturity Benefit None None
Unique Feature Better Half Benefit and whole-life coverage Increasing Term for inflation protection
Purchase Mode Online only Online or offline
Best For Long-term planners, young professionals Budget-conscious buyers, inflation-focused

Note: Premiums are indicative and vary based on age, health, smoking status, and riders. Use the SBI Life premium calculator on www.sbilife.co.in for accurate quotes.

Detailed Comparison of Features

Premiums and Affordability

  • eShield Next: Lower premiums (~₹6,500/year for ₹1 crore, 30-year term) due to online-only purchase, which eliminates intermediary costs. Ideal for cost-conscious buyers seeking high coverage.
  • Smart Shield: Slightly higher premiums (~₹7,000/year for same terms) but offers high sum assured discounts, making it cost-effective for larger coverage (e.g., ₹2 crore).
  • Winner: eShield Next for lower premiums, especially for younger buyers.

Coverage Flexibility

  • eShield Next: Offers three variants:
    • Level Cover: Fixed sum assured throughout the term.
    • Increasing Cover: Sum assured increases by 10% every 5 years to combat inflation.
    • Level Cover with Future Proofing Benefit: Sum assured increases for life events (e.g., 25% for marriage, 50% for first child).
    • Whole-life coverage up to age 100 is a standout feature.
  • Smart Shield: Two variants:
    • Level Term Assurance: Fixed sum assured.
    • Increasing Term Assurance: Sum assured increases by 5% annually.
  • Winner: eShield Next for more variants and whole-life option.

Additional Benefits

  • eShield Next:
    • Better Half Benefit: If the policyholder dies, the spouse gets coverage under the same plan without additional premiums.
    • Terminal Illness Benefit: Pays sum assured (up to ₹2 crore) upon diagnosis of a terminal illness before age 80.
  • Smart Shield: No unique benefits like Better Half or terminal illness; focuses on simplicity and affordability.
  • Winner: eShield Next for value-added benefits.

Riders

  • Both plans offer:
    • Accidental Death Benefit: Additional payout if death occurs due to an accident.
    • Accidental Total/Permanent Disability: Covers disability due to accidents.
  • Winner: Tie, as rider options are identical.

Claim Process

Both plans follow SBI Life’s streamlined claim process:

  • Notify: Inform SBI Life within 15 days via www.sbilife.co.in, helpline (1800-267-9090), or branches.
  • Documents: Death certificate, policy document, nominee’s ID, claim form, and medical records (if applicable).
  • Payout: Lump sum, monthly installments, or combination, with a 99.20% claim settlement ratio.
  • Winner: Tie, as the process is identical.

Exclusions

Both plans share common exclusions:

  • Suicide within one year of policy start/reinstatement: 80% premium refund only.
  • High-risk activities, criminal acts, or non-disclosure of health/occupation details.
  • Winner: Tie, as exclusions are standard.

Eligibility Criteria

  • eShield Next:
    • Entry Age: 18–65 years.
    • Policy Term: 5–50 years (up to age 100).
    • Medicals: May be required for high sums or based on health.
  • Smart Shield:
    • Entry Age: 18–60 years.
    • Policy Term: 5–40 years.
    • Medicals: Similar requirements.
  • Winner: eShield Next for wider age range and longer terms.

Which SBI Term Insurance Plan is Best for You?

  • Choose SBI Life eShield Next if:
    • You want whole-life coverage up to age 100.
    • You prefer online purchases for lower premiums.
    • You value unique features like Better Half Benefit or Future Proofing Benefit.
    • You’re a young professional or parent planning for long-term security.
  • Choose SBI Life Smart Shield if:
    • You need affordable coverage with flexibility for offline purchase.
    • You want an increasing sum assured to counter inflation.
    • You’re seeking high coverage (e.g., ₹2 crore) with discounts.
    • You prefer a simple plan without complex features.

Why Choose SBI Term Insurance in 2025?

Both SBI Term Insurance plans are backed by SBI Life’s AAA/Stable rating from CRISIL and extensive network of 947 branches. With affordable premiums (starting at ₹449/month for ₹1 crore for young buyers), tax benefits under Sections 80C and 10(10D), and a high claim settlement ratio, these plans ensure reliability and value. The choice between eShield Next and Smart Shield depends on your priorities—long-term flexibility or budget-friendly simplicity.

Conclusion: Pick the Right SBI Term Insurance Plan

SBI Life eShield Next is ideal for those seeking comprehensive, long-term coverage with unique benefits like whole-life options and spouse coverage. SBI Life Smart Shield suits budget-conscious buyers who want flexibility and inflation-adjusted coverage. Compare premiums and features using the SBI Life premium calculator on www.sbilife.co.in or consult an advisor to finalize your choice. Secure your family’s future with the best SBI Term Insurance plan today!

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