Investor Education
SBI Term Insurance – Benefits, Insurance Plans and Document Required
SBI Term Insurance
SBI Life Insurance Company offers a variety of term insurance plans, each having a different set of features and benefits. In general, term insurance is a type of life cover for a period of time. The purpose of any term plan is generally to offer financial support to the family in case of death of the policyholder (Death benefit). Along with the Death benefit offered by SBI term insurance plans, individuals are also offered riders benefits to enhance the policy coverage.
Types of SBI Term Insurance Plans
• SBI Life eShield: Pure term insurance plan securing the family of life assured in case of misfortune. This policy also provides tax benefits to the policyholder along with the two riders option.
- Accidental Death Benefit Rider: Add-on rider facility is available in this policy in case of death of the policyholder due to an accident within 120 days of the rider policy in action. In this matter, the rider sum assured will be payable to the family of the policyholder.
- Accidental Total and Permanent Disability Benefit Rider: In this rider option, the sum assured will be payable in case of total and permanent disability of the policyholder due to an accident during the term of rider policy.
• SBI Life Saral Shield: A special pure term offered by SBI for first-time buyers offering protection of the family in their absence. This policy however offers no add-on riders benefit or maturity benefit. SBI Life Saral Shield provides policyholders the convenience of premium payment in single mode or regular intervals up to 5-10 years only.
• SBI Life Smart Shield: SBI Life pure term with two options i.e. Level term assurance, and Increasing term assurance, with two riders option, i.e. Accidental death benefit rider, and Accidental total and permanent disability benefit rider.
- Accidental Death Benefit Rider: The policy offers an accidental death benefit rider facility in case of death of the policyholder due to an accident within 120 days of the rider policy being effective, with the rider premium payable.
- Accidental Total and Permanent Disability Benefit Rider: In this rider option, the sum assured will be payable to the family in case of total and permanent disability of the policyholder due to an accident during the term of rider policy.
• SBI Life Grameen Bima: Specially designed for the pure term policy for the lower section of the society, providing life coverage to the backward class at low premium rates. The policyholder has the option to choose for the premium payments in multiple Rs 100, making it easy for them to afford the policy. No surrender benefit is offered, however, the policyholder can surrender the policy after the first year of the policy.
| Term Insurance | Age Criteria | Policy term | Sum assured (Rs) | Death Benefit | Rider Benefit |
SBI Life eShield
| Minimum:18 years Maximum: 65 years | 5 – 30 years | Lower limit: 25,00,000 Upper limit: None | ✓ | ✓ |
SBI Life Saral Shield
| Minimum:18 years Maximum: 60 years | 5 – 30 years | Lower limit: 7,00,000 Upper limit: 24,00,000 | ✓ | × |
SBI Life Smart Shield
| Minimum:18 years Maximum: 60 years | 5 – 30 years | Lower limit: 25,00,000 Upper limit: None | ✓ | ✓ |
SBI Life Grameen Bima
| Minimum:18 years Maximum: 50 years | 5 years | Lower limit: 10,000 Upper limit: 50,000 | ✓ | × |
Key Features of SBI Term Insurance
Financial Security: SBI term plan offers financial security and ensures the protection of the family during the policy tenure in case of any misfortune.
Death Benefit: The payout to the beneficiary/family is done when the insured dies, offering the Death benefit, like any other term plan. No Maturity benefit if offered.
Easy availability: SBI term plans are easily available on the official website of SBI Life Insurance Company. They can be brought online/offline as per the convenience of the individual.
Riders Benefit: Option of add-on riders plan is available in some policies after payment of the affordable premium amount, as already discussed in this article.
Benefits of SBI Term Insurance
Financial protection: SBI term plan ensures financial support to the family in case of incident/misfortune incurred during the policy tenure.
Term plan options: These also offer a wide range of policy terms, which can be selected as per choice.
Premium payments: Flexible premium payment options are available for SBI term insurance, depending upon the type one may select. Single payment or payment at regular intervals, both options are there for one to opt for.
Tax Benefits: Tax benefits as per Section 80C and Section 10(10D) can also be availed in these term plans.
Exclusion of SBI term insurance
Exclusion for Accidental Death Benefit: Death due to the following mentioned reasons/incidents are though not covered in the SBI term insurance plan:
- Drug Abuse
- Criminal acts
- Dangerous sports/other activities
- Infection
- Self-inflicted injury
Suicide Exclusion: If the life assured dies due to suicide in the first policy year, 80% of the paid premiums will be payable to the family of the policyholder. After that, the policy will end.
Documents required while applying for SBI Term Insurance Plan
The following documents should be kept handy while applying for any SBI term plan:
- Age proof – Aadhar Card, Birth Certificate, etc.
- Identity proof: Aadhar Card, Pan card, License, etc.
- Address Proof: Aadhar Card, Passport, Rent agreement, etc.
- Income proof: Salary slip, ITR, etc.
- Medical test report
Frequently Asked Questions
- Why should one go for SBI term insurance?
SBI term insurance plan offers a wide range of financial security for the family of assured in case of misfortune. It also offers flexible premium payment options enabling one to easily prefer it over any other term plan.
2. Can I check the status of my SBI plan online?
Absolutely. SBI offers online services for payments, checking status, etc. All you have to do is log in to the e-Portal. Enter the necessary details like customer ID, DOB, and your policy number, and check the status along with other details on the screen.
3. Can I change my nominee in the SBI term plan?
Yes, you can change the name of the nominee in your SBI term plan. For this, you have to successfully submit Change in the Nomination Form.
4. What are the modes of policy renewal?
SBI offers a variety of options for the renewal of the policy. You may renew your term plan via SMS, SBI branch, Online portal, or with cash payment.
5. Does SBI Life eShield offer any riders and maturity benefit?
SBI Life eShield does not offer any maturity benefit. However, this policy comes with two additional rider options i.e. Accidental death benefit rider and Accidental total and permanent disability benefit rider.