SBI Term Insurance features every credit card customer should know

SBI Term Insurance: Must-Know Features for Credit Card Users in India

Credit cards are the heartbeat of modern spending in India, powering everything from daily groceries to luxury vacations. With over 100 million cards in use and outstanding dues crossing ₹2 lakh crore in 2025, they’re a lifeline for many. But for heavy credit card users—those swiping ₹50,000 to ₹2 lakh monthly—the thrill of rewards, cashback, and convenience comes with real risks. High-interest debt, unexpected life events, or an untimely passing can leave families grappling with financial burdens. That’s where SBI Life Insurance steps in with term insurance plans designed to protect your loved ones and secure your financial legacy. Backed by the trusted State Bank of India, SBI’s term plans are affordable, flexible, and tailored to the needs of credit card customers. Here’s a detailed look at the key features every cardholder should know to safeguard their finances while enjoying their card’s perks.

Affordable Premiums for Maximum Protection

SBI Life Insurance makes financial security accessible with term plans that deliver high coverage at low costs. Whether you’re eyeing the SBI Life eShield Next, Smart Shield, or Saral Jeevan Bima, you can get coverage from ₹25 lakh to ₹5 crore for premiums as low as ₹500–₹1,500 per month, depending on your age and health. For instance, a 30-year-old non-smoker can secure a ₹1 crore policy for just ₹7,000–₹10,000 annually. This affordability is a game-changer for credit card users managing hefty bills, ensuring you can protect your family without cutting back on your lifestyle. Low premiums mean you can keep swiping for rewards while securing a safety net for your loved ones.

Flexible Plans to Match Your Lifestyle

Every credit card user has unique spending habits, and SBI’s term insurance plans are built to adapt. The SBI Life eShield Next offers customizable options like level cover, which keeps the sum assured constant, or increasing cover, which boosts the payout by 10% every five years to match rising debts or EMIs. The SBI Life Smart Shield is perfect for young professionals, with flexible premium payment options—single, limited, or regular pay—to suit fluctuating incomes from credit card-heavy lifestyles. For those who want simplicity, the SBI Life Saral Jeevan Bima delivers straightforward protection with minimal paperwork. With policy terms ranging from 5 to 40 years, you can align coverage with your debt repayment timeline or working years, ensuring your plan fits like a glove.

Riders to Boost Your Coverage

Credit card users often lead dynamic lives—jet-setting for business, splurging on gadgets, or dining out frequently. SBI’s term plans let you enhance protection with optional riders tailored to these lifestyles. The accidental death benefit rider adds an extra payout if death occurs due to an accident, ideal for frequent travelers booking flights with their cards. The critical illness rider covers major conditions like cancer or heart disease, providing a lump sum to handle medical costs without maxing out your credit limit. Adding a ₹10 lakh rider to a plan like eShield Next costs only a small premium increase, offering peace of mind for cardholders who live life in the fast lane.

Rock-Solid Claim Settlement Record

When you invest in term insurance, you need assurance that your family will receive the payout when it matters most. SBI Life Insurance boasts a claim settlement ratio of 99.20% for FY 2023-24, one of the highest in the industry, ensuring your nominees can count on the sum assured to clear credit card debts or cover living expenses. Backed by the credibility of State Bank of India, SBI Life’s reliability is unmatched, giving cardholders confidence that their financial plan will hold strong, no matter what. This trust is crucial for those with significant credit card dues, ensuring debts don’t burden loved ones.

Tax Benefits to Stretch Your Savings

SBI term insurance plans come with attractive tax advantages that align perfectly with the financial savvy of credit card users. Premiums qualify for deductions up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961, lowering your taxable income. The death benefit payout is tax-free under Section 10(10D), ensuring your family receives the full sum to settle dues or maintain their lifestyle. For heavy spenders, these savings can be redirected toward paying down high-interest credit card balances (24%–42% annually) or earning more rewards, making term insurance a smart financial move.

Seamless Online Experience

In 2025, convenience is king, and SBI Life Insurance delivers with a fully digital process for buying and managing term plans. Through their intuitive website or mobile app, credit card users can compare plans, calculate premiums, and purchase policies in minutes. For example, securing the SBI Life eShield Next online requires only basic health and income details, with no lengthy paperwork. You can also manage premiums, update nominees, or adjust coverage on the go, perfect for busy cardholders who value efficiency. This digital-first approach mirrors the ease of swiping a card, making financial protection hassle-free.

Tailored Coverage for Debt Protection

Credit card users often carry substantial liabilities—think ₹10 lakh in card dues or ₹20 lakh in EMIs for a car or home. SBI’s term plans let you customize the sum assured to cover these obligations. A good rule is to choose coverage 10–15 times your annual income, plus your total debt. For a cardholder earning ₹15 lakh a year with ₹20 lakh in liabilities, a ₹1.5 crore to ₹2 crore plan ensures all debts are cleared while supporting family expenses. As your credit card spending or loans grow, SBI’s flexible plans allow you to scale coverage, keeping your financial plan future-proof.

Transparent and Fair Underwriting

SBI Life Insurance prioritizes transparency, ensuring you understand your policy’s terms and premium calculations. When applying, provide accurate health and lifestyle details—smokers or those with medical conditions may pay higher premiums, but SBI’s clear underwriting process eliminates surprises. This is critical for credit card users, as non-disclosure could risk claim rejections, leaving families to handle high-interest debts. With SBI, you get a fair deal, ensuring your plan delivers when it’s needed most.

Why Credit Card Users Need SBI Term Insurance Now

Recent changes in credit card benefits, like the removal of complimentary air accident insurance on SBI cards such as Elite and Prime (effective July 15, 2025, per Economic Times), highlight the need for standalone protection. SBI term insurance fills this gap, offering comprehensive coverage to replace lost perks. It’s a strategic tool to ensure your credit card debts—often carrying 36% annual interest—don’t outlive you. By securing a plan, you protect your family from financial strain while continuing to enjoy your card’s rewards.

Take Control of Your Financial Future Today

Don’t let your credit card lifestyle leave your loved ones vulnerable. SBI Life Insurance’s term plans offer affordable, flexible, and reliable protection tailored for credit card users. With high coverage, tax benefits, and a seamless digital experience, they’re the perfect way to secure your financial legacy. Start by assessing your debts—credit card balances, EMIs, and loans—and use SBI’s online calculator to find the right plan. Explore options like eShield Next or Smart Shield, add riders for extra peace of mind, and buy online or consult an SBI Life advisor. In 2025, make SBI term insurance your financial superpower—spend freely, live boldly, and protect what matters most. Visit the SBI Life Insurance website today to get started!