SBI term insurance vs ICICI Prudential which should you buy

SBI Term Insurance vs. ICICI Prudential: Which Should You Buy in 2025?

Choosing the right term insurance plan is a pivotal decision to secure your family’s financial future, offering high coverage at affordable premiums. In India’s competitive insurance market, SBI Life Insurance and ICICI Prudential Life Insurance stand out as two leading private insurers, each with robust term plans tailored to diverse needs. Deciding between them requires weighing factors like affordability, reliability, flexibility, and customer experience. Based on the latest 2025 data, this comprehensive comparison of SBI Life and ICICI Prudential term insurance plans examines premiums, claim settlement ratios, plan features, riders, and more to help you determine which is the better buy for your specific requirements.

Understanding Term Insurance and Its Importance

Term insurance is a pure protection product: you pay regular premiums, and if you pass away during the policy term, your nominees receive a substantial sum assured. It offers no maturity benefits or investment returns, keeping costs low while providing high coverage. This makes it ideal for covering liabilities like home loans, education expenses, or daily living costs. In 2025, with rising inflation (e.g., 4.12% for education in May 2025), term insurance is crucial for ensuring your family’s financial stability.

SBI Life Insurance, a joint venture between State Bank of India and BNP Paribas Cardif, is known for its affordability and innovative plans. ICICI Prudential Life Insurance, a partnership between ICICI Bank and Prudential Corporation Holdings, excels in flexibility and comprehensive coverage options. Both are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), ensuring policyholder protection. Let’s dive into the comparison to see which insurer better suits your needs.

SBI Life Insurance: Affordable and Reliable

Established in 2001, SBI Life is a leading private insurer with an Assets Under Management (AUM) exceeding ₹3 lakh crore in 2025. Its term plans, such as eShield Next, Smart Shield Plus, and Saral Jeevan Bima, are designed for affordability and flexibility, leveraging SBI’s banking network and digital platforms. With a claim settlement ratio (CSR) of 99.20% in FY 2023-24, SBI Life is highly reliable, processing 98.99% of claims within 30 days.

Key SBI Life Term Plans

  1. eShield Next: Offers level or increasing cover (10% annually from the 6th year to counter inflation), whole life coverage up to age 100, and an optional return-of-premium feature. Includes terminal illness benefits.
  2. Smart Shield Plus: Provides flexible payouts (lumpsum, monthly income, or both) and rider options like critical illness and accidental death benefits.
  3. Saral Jeevan Bima: A no-frills plan for smaller sums (₹10,000-₹50,000), ideal for first-time buyers with simplified underwriting.

Premium Examples (2025 Estimates)

  • 30-Year-Old Non-Smoker Male, ₹1 Crore, 30-Year Term: ₹8,000-₹10,000 annually (eShield Next).
  • 50-Year-Old Non-Smoker Male, ₹50 Lakh, 20-Year Term: ₹15,000-₹20,000 annually (Smart Shield Plus).
  • 60-Year-Old Non-Smoker Female, ₹25 Lakh, 10-Year Term: ₹12,000-₹15,000 annually (Saral Jeevan Bima).

SBI Life offers discounts for non-smokers, women, and higher sums assured, with online purchases reducing costs by eliminating agent commissions.

ICICI Prudential Life Insurance: Flexible and Feature-Rich

Founded in 2000, ICICI Prudential is a dominant player with an AUM of ₹2.4 lakh crore in 2025. Its term plans, like iProtect Smart, Precious Life, and POS iProtect Smart, emphasize customization and comprehensive coverage. With a CSR of 99.30% in FY 2023-24, ICICI Prudential is slightly ahead of SBI Life in claim reliability, supported by a strong digital ecosystem and customer-centric approach.

Key ICICI Prudential Term Plans

  1. iProtect Smart: Offers life cover up to age 99, with critical illness (34 diseases) and accidental death benefits. Includes flexible payouts (lumpsum, income, or both) and life stage adjustments (e.g., 50% cover increase on marriage).
  2. Precious Life: Designed for those with pre-existing conditions, offering coverage despite health challenges.
  3. POS iProtect Smart: A point-of-sale plan with simplified underwriting, ideal for quick purchases.

Premium Examples (2025 Estimates)

  • 30-Year-Old Non-Smoker Male, ₹1 Crore, 30-Year Term: ₹10,000-₹12,000 annually (iProtect Smart).
  • 50-Year-Old Non-Smoker Male, ₹50 Lakh, 20-Year Term: ₹18,000-₹23,000 annually (iProtect Smart).
  • 60-Year-Old Non-Smoker Female, ₹25 Lakh, 10-Year Term: ₹14,000-₹17,000 annually (POS iProtect Smart).

ICICI Prudential provides discounts for online purchases (up to 5%), non-smokers, and women, but its premiums are generally higher due to extensive rider options.

Head-to-Head Comparison

To decide which insurer to choose, let’s evaluate SBI Life and ICICI Prudential across key parameters:

1. Premium Affordability

SBI Life typically offers lower premiums than ICICI Prudential for equivalent coverage:

  • Younger Buyers (Age 30): For ₹1 crore coverage over 30 years, SBI Life’s eShield Next costs ₹8,000-₹10,000 annually, while ICICI Prudential’s iProtect Smart ranges from ₹10,000-₹12,000, saving you ₹2,000-₹4,000 per year with SBI Life.
  • Middle-Aged Buyers (Age 50): For ₹50 lakh coverage over 20 years, SBI Life’s Smart Shield Plus is ₹15,000-₹20,000, compared to ICICI Prudential’s ₹18,000-₹23,000, a savings of ₹3,000-₹5,000 annually.
  • Older Buyers (Age 60): For ₹25 lakh coverage over 10 years, SBI Life’s Saral Jeevan Bima costs ₹12,000-₹15,000, while ICICI Prudential’s POS iProtect Smart is ₹14,000-₹17,000, a smaller gap of ₹2,000 annually.

SBI Life’s aggressive pricing and discounts for healthy lifestyles make it cheaper across most scenarios.

2. Claim Settlement Ratio

  • SBI Life: 99.20% (FY 2023-24), with 98.99% of claims settled within 30 days, indicating high reliability and efficiency.
  • ICICI Prudential: 99.30% (FY 2023-24), slightly higher, reflecting a strong track record, especially for complex claims.

Both insurers are highly reliable, but ICICI Prudential’s marginal edge may appeal to those prioritizing claim certainty.

3. Plan Features and Flexibility

  • SBI Life: Offers innovative features like increasing cover (eShield Next) to combat inflation, whole life coverage, and return-of-premium options. Its plans are straightforward, ideal for cost-conscious buyers.
  • ICICI Prudential: Excels in customization, with life stage adjustments (e.g., increasing cover on marriage or childbirth) and flexible payouts (lumpsum, income, or increasing income). Its Precious Life plan is unique for those with pre-existing conditions.

ICICI Prudential offers more customization, while SBI Life focuses on simplicity and affordability.

4. Rider Options

  • SBI Life: Provides cost-effective riders, including critical illness (up to 50 illnesses), accidental death benefits, terminal illness accelerators, and premium waivers. Adding a critical illness rider may increase premiums by ₹2,000-₹3,000 annually.
  • ICICI Prudential: Offers extensive riders, including critical illness (34 diseases), accidental death (up to ₹2 crore), and premium waivers for disability. Riders are pricier, adding ₹3,000-₹5,000 annually.

SBI Life’s riders are more affordable, while ICICI Prudential’s are broader in scope.

5. Customer Experience

  • SBI Life: Leverages SBI’s banking network and YONO app for seamless policy management, online claims, and 24/7 chat support. Its digital-first approach suits tech-savvy buyers.
  • ICICI Prudential: Offers a robust digital platform with a user-friendly app, WhatsApp support, and a 24/7 helpline. Its branch network supports in-person assistance, appealing to those preferring traditional service.

Both excel in customer service, but ICICI Prudential’s digital ecosystem is slightly more advanced.

6. Financial Stability

  • SBI Life: Solvency ratio of ~2.15 (2025), well above IRDAI’s 1.5 requirement, backed by SBI’s credibility.
  • ICICI Prudential: Solvency ratio of ~2.17, also strong, supported by ICICI Bank’s reputation.

Both are financially robust, ensuring long-term claim-paying ability.

Insights from 2025 Discussions

Online forums in 2025, including Reddit and social media, often favor SBI Life for its affordability and high CSR, with users praising eShield Next’s increasing cover for inflation protection. ICICI Prudential is lauded for its flexibility and rider options, particularly for those with health concerns. Some users recommend SBI Life for pure term plans paired with mutual funds for wealth creation, citing its lower costs compared to ICICI Prudential’s feature-heavy plans.

Which Should You Buy?

  • Choose SBI Life If:

    • You prioritize affordability: Lower premiums make it ideal for younger buyers or those seeking high coverage (e.g., ₹1 crore+).
    • You want simple, value-driven plans: eShield Next’s increasing cover and low-cost riders suit cost-conscious buyers.
    • You prefer digital convenience: SBI Life’s YONO app and online processes are seamless.

  • Choose ICICI Prudential If:

    • You need flexibility: iProtect Smart’s life stage adjustments and payout options cater to dynamic needs.
    • You have health concerns: Precious Life is tailored for those with pre-existing conditions.
    • You value comprehensive riders: Extensive critical illness and accidental death coverage add robust protection.

For most buyers, SBI Life is the better buy in 2025 due to its lower premiums (e.g., saving ₹2,000-₹5,000 annually) and high CSR (99.20%). However, ICICI Prudential is preferable if you need tailored coverage or have specific health risks. Aim for a sum assured of 10-15 times your annual income, use online calculators (e.g., Policybazaar or insurer websites) for accurate quotes, and disclose health details fully to avoid claim issues. Both insurers are reliable, but SBI Life’s affordability gives it a slight edge for budget-focused buyers, while ICICI Prudential shines for customization.

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