SBI Life Insurance Company is a leading insurance provider in India and has a reputation for serving a wide range of customers across the country with its comprehensive insurance products and solutions. To carry forward this reputation, the company recently launched a new term life insurance plan:- SBI Life Smart Shield Plan. It is a premium product that is non-linked and non-participating in nature and has been designed for individuals. The plan comes with a variety of options and benefits that are specially designed to provide financial protection to the family of the insured person at affordable rates. There are only death benefits available and no maturity benefits are included in this plan.
In the sections ahead we've listed all important information about SBI Life Smart Shield Term Insurance plan. So, if you want a clearer understanding of this plan, keep reading along.
The plan provides lifetime financial protection to the nominee of the insured person if in case anything unfortunate happens to them in future. The best part of this plan is that its premium amounts are available at reasonable costs which make this an affordable plan.
There are two options available within this plan- The Level Term Assurance option and Increasing Term Assurance. Both these options are designed to provide customers with complete freedom from liabilities.
With this plan, customers have the option to customize their coverage by choosing from a wide range of additional benefits including accidental death benefit rider and accidental total and permanent disability benefit rider.
The plan provides special premium discounts to people who maintain a healthy lifestyle and also offers discounts on opting for a large sum assured.
To match your insurance requirements, SBI Smart Shield Plan provides you with the flexibility to choose from two plan options. They are mentioned below:
1. Level Term Assurance
In case you just want a level cover throughout the policy term, this term plan is the best option for you. You have an advantage under this plan- it comes at an affordable premium cost. It is enough to help your family maintain a decent standard of living (even in your absence). This plan gives you the freedom to choose a sum assured as per your budget.
2. Increasing Term Assurance @ 5% Simple p.a.
This term plan increases your insurance cover with each passing year. If you consider inflation factors and dream of higher living standards for your family, you should opt for this plan. You can buy this plan with a small addition to the premium amount. This won't let your family compromise with any of their growing lifestyle habits.
Riders provide extra coverage to the policyholder. Although it is optional, it becomes a bit necessary to buy a rider along with the base plan. You can opt for the following riders available under the SBI Life Smart Shield Term Insurance plan:
Note that the rider sum assured can not be more than the basic sum assured. To opt for both of these riders, you will be required to fulfil pre-specified eligibility criteria. Details of these criteria are mentioned in the table given below.
|Age at Entry||18 Years||65 Years|
|Age at Maturity||Not mentioned||75 years|
|Policy Term||5 years||75 less entry age|
|Sum Assured||Rs. 25,000||Rs. 50,00,00|
For a better understanding of the plan and clarity relating to the terms and conditions, here are the benefits of the plan explained in detail.
The policy documents should be signed after thoroughly going through them. Still, you have a free look period to review all the terms and conditions of the policy. In case of any doubt/dissatisfaction concerning the clause mentioned in the policy document, you can cancel the policy. The policy can be cancelled within a few days from the issuance date. The policy can be cancelled within 15 days (if it has been bought offline) and within 30 days (if it has been bought online).
A lapsed SBI Smart Shield Policy can be revived within 5 consecutive years from the date of the first unpaid premium. Policy revival is possible only before the maturity date subject to a condition that the insured is alive.
A grace period of 30 days is provided under the SBI Smart Shield Plan. In case you miss out on the premium payment date, you can pay the policy premium within the grace period. In case of failure, the SBI Smart Shield Policy is subject to lapse.
You may get tax benefit under SBI Smart Shield Plan as per applicable income tax laws in India. The income tax law is subject to change from time to time.
In the case of the demise of the policyholder, death benefits are provided to the beneficiary mentioned in the policy document. The nominee gets death benefits as per the term plan chosen at the time of the issuance of the policy.
SBI Life Smart Shield Term Insurance plan offers a discount of 5% for single premium policies and a 6.5% discount for single premium policies for its employees. The list of SBI employees includes all the retired employees, VRS holders, minor children and spouse of employees of SBI Life Insurance Co. Ltd., State Bank of India, RRBs sponsored by SBI and subsidiaries of the SBI group.
You get a rebate in case you opt for a higher sum assured amount under the plan. Details of the discount are given below. Let's have a look at them.
|Sum assured amount||Discount as a premium of percentage|
|50 lakhs to 99 lakhs||10%|
|1 crore to 4.99 crores||20%|
|5 crores and above||30%|
You can avail of surrender value benefit only if you have opted for a single premium payment option. The surrender value is paid instantly on request and it is allowed from the first policy year. Surrender value also depends on the plan you have opted for. Here are a few more details about the surrender value:
|Plan value||Surrender value calculation|
|Level Term Assurance||Single-premium x 75% x outstanding term of maturity/total term|
|Increasing Term Assurance||Single-Premium x 80% x (outstanding term of maturity/total term) x (average of effective SA* at surrender and effective SA at the time of maturity/ Average of initial SA and effective SA at maturity )|
The plan offers special discounts on premium amounts to non-smokers. Given below is a table that illustrates the comparison between the regular premium amount for a smoker and a non-smoker 35-year-old male, opting for a coverage amount of Rs. 50,00,000 under level term assurance.
|Policy term||The premium for a smoker person||The premium for a non-smoker person|
|15 years||Rs. 8,451||Rs 6,687|
|20 years||Rs. 10,071||Rs 7,785|
|25 years||Rs. 11,975||Rs 9,126|
Here is a graphical representation of the same data that will help you get a clearer picture of this concept.
Premium Illustration for a smoker and non-smoker person
In case you have made your mind to buy the plan, here is the eligibility table highlighting all the criteria that need to be fulfilled to buy SBI Smart Shield Policy.
|Entry Age||18 Years||60 Years|
|Maturity Age||Not mentioned||80 Years|
|Basic Sum Assured||Rs.25,00,000 (In multiples of Rs.1,00,000)||No limit|
|Policy Term||5 Years||80 Years less age at entry|
|Premium Amount|| Single premium: Rs.11,000|
Yearly - Rs.3,000
Half-yearly - Rs.1,500
Quarterly - Rs.750
Monthly - Rs.300
|Subject to policy underwriting.|
|Premium Payment Modes||Single premium, Regular premium (yearly, half yearly, quarterly, monthly)|
|Premium Frequency Loading|| Half-yearly - 51% of the annual premium|
Quarterly - 26% of the annual premium
Monthly - 8.50% of the annual premium
Given below is a graphical representation of the premium amount for different ages of the policyholder. Refer to this sample illustration to get an idea about how age affects the premium rate in an SBI Smart Shield Plan.
Data in the table is calculated for a non-smoker male, taking a policy worth Rs. 50,00,000 sum assured for a policy term of 25 years.
|Age of the policyholder||Premium amount (in Rs)|
|30 years||Rs 6,629|
|35 years||Rs 9,126|
|40 year||Rs 13,050|
|45 years||Rs 19,031|
Premium amount according to the age of the policyholder
The suicidal case is an exclusion from the SBI Smart Shield Policy. The nominee is entitled to get 80% of the total premium paid till the date of death (in case of suicidal death). The death of the insured should be within 12 months from the date of inception of the policy/the policy revival date.
The wide range of coverage provided under the SBI Life Smart Shield Plan has been appreciated by the policyholders. The rebate on the higher sum assured value has won the hearts of the buyers. Customers have liked the rewards they get for maintaining a healthy lifestyle. Policyholders are fully satisfied with the benefits provided under SBI Life Smart Shield Policy.
No, since SBI Smart Shield is a life insurance pure risk premium product, so, it does not provide the following benefits:
No, a loan facility is not available under this plan.
SBI Life insurance company does not provide an online buying option on SBI Life Smart Shield Plan. You can purchase this plan offline by visiting the nearest SBI Life branch.
No, it is not mandatory to buy riders along with a life insurance policy. But it provides extra coverage so you should buy one.
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