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SBI Term Insurance

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The State Bank of India or SBI offers a plethora of comprehensive SBI life term insurance plans for meeting the needs of the prospective insurance buyers. The SBI term insurance plans have customized options to provide the insured with financial protection as well as provide security to the insured's family in case something untoward were to happen. 

The SBI life term plans facilitate not only to provide the benefits of death coverage but also to provide riders benefit for enhancing the policy coverage. As they come with affordable premium rates, SBI term plans prove to be suitable for prospective policyholders that wish to provide their family and loved ones in the circumstance of their demise.

Features SBI Term Insurance Plan

There are various SBI term insurance plans available, from which you can compare and choose. You can both buy the plans online as well as offline. The SBI life term insurance plans can be applied from the age of 18 years, along with features such as maturity benefit, death benefit, as well as surrender benefit, all for a single premium policy. The following section discusses the features and benefits of SBI life term plans in detail:

  • The family of a policyholder is given specific financial security, under the circumstance of the insured dying during the policy term.
  • Such financial support can prove to be necessary for pay off any remaining debt, such as education/home loan.
  • The term insurance plans provided by SBI life are easy-to-access. They are available both online (on the official website/other aggregator websites where you may compare different policies and buy) as well as offline through bank branches and agents.
  • There are a plethora of term insurance plans available, which you may choose from as per your particular necessity, at an affordable price.
  • You can decide your premium frequency, which you can opt to pay either altogether monthly, or annually.
  • These term insurance plans provide you with an option for enhancing protection through buying riders at an additional payment of premiums. Amongst many such riders, the rider for personal accident coverage is highly relevant.
  • Other than providing financial protection to the family members of an unwell policyholder, SBI life term insurance plans additionally offer tax benefits on premiums paid under section 80C of Income Tax Act, 1961, in the course of the policy term.

Best SBI Term Insurance Plans  

Plans Entry Age (in years) Maturity Age (in years) Policy Term (in years) Sum Assured (in INR)
SBI Life eShield Min - 18 to Max - 65 70 Min 5 to Max 30 Min - 20,00,000 to Max - No Limit
SBI Life Smart Shield Min - 18 to Max - 60 65 Min 5 to Max 30 Min - 25,00,000 to Max - No Limit
SBI Life Saral Shield Min - 18 to Max - 60 65 Min 5 to Max 30 Min - 7,00,000 to Max - 24,00,000
SBi Life Grameen Bima Min - 18 to Max - 50 n/a Min 5 Min - 10,000 to Max - 50,000

Description of All Plans Available:

(Summary, Coverage, Eligibility, Premiums)

SBI Life eShield Term Plan

SBI Life eShield is an online term plan. It generally provides four different coverage options that the customers may choose. The benefits and features of these plans are as follow:

This plan has two different plan options:

      • Level Cover Benefit
      • Increasing Cover Benefit

Both of these plan options come with in-built benefits for accelerated terminal illness in them.

Benefits of SBI Life eShield Term Plan

Option for Second Medical Opinion:

      • This option allows the policyholders to receive a one-second opinion for their medical diagnosis as well as treatment plans under the supervision of another medical practitioner.
      • This benefit becomes available for both plan options if the policy is still active.

Rider Benefit of SBI Life eShield Term Plan

      • Under the SBI Life - Accidental Death Benefit Rider, the assured sum is paid if the policyholder's demise occurs within 120 days of any accident while the tenure of the rider term is still active. However, the reason for the policyholder's death should be the injuries inflicted by accident.
      • Under the SBI Life - Accidental Total & Permanent Disability Benefit Rider, the assured sum is paid if the policyholder suffers from permanent and total disability due to accident during the rider term's tenure. However, the reason for the policyholder's total and permanent disability should be the injuries inflicted by accident, and the status of his/her policy should be active. 

SBI Life Smart Shield Term Plan

This SBI term insurance plan also has four coverage options that the prospective policyholder can choose. These four coverage options are:

Level Term Assurance

In this case, the chosen assured sum stays the same across the tenure of the term insurance plan. Upon the demise of the policyholder, the guaranteed amount is payable to the nominee.

Increasing Term Assurance

In this case, the assured sum chosen at the beginning of the policy purchase increases every passing year at a 5% rate. Upon the demise of the policyholder during the plan tenure, the assured sum upon the date of death will be paid to the nominee.

Decreasing Term Assurance (Loan Protection Plan)

In this case, a certain sum chosen at the beginning of the policy purchase decreases each year.  A suitable sure amount is subject to disbursal to the nominee if his death occurs during the term. A record of the day of passing is kept into account.

Decreasing Term Assurance (Family Income Protection)

Option for Second Medical Opinion:

      • In this case, the assured sum chosen at the beginning of the policy purchase decreases each year. An appropriate sure amount is paid to the nominee if the death of the policyholder takes place during the tenure.
      • Additional riders are also available for making the coverage by the term insurance plan even more comprehensive.

SBI Life Accidental Death Benefit Rider

This option, if chosen, pays an additional amount if there is an accidental death of the policyholder within the policy tenure.

SBI Life Accidental Total and Permanent Disability Benefit Rider

This option, if chosen, pays an additional amount if there is an accidental disability of the policyholder, which is total and permanent, within the policy tenure.

Accelerated Critical Illness Cover

Choosing this option pays an additional amount under essential conditions of illness. The SBI term insurance plan must have them covered under the available riders.

Rebates on SBI life term insurance premium

Option for Second Medical Opinion:

      • Choosing significant levels of Sum Assured.
      • Healthy people who choose to become policyholders.

SBI Life Saral Shield Term Plan

This plan offers three different options of the death benefit to the policyholder, which are as follows:

Level Term Assurance

In this case, the chosen assured sum stays the same across the tenure of the term insurance plan. Upon the demise of the policyholder, the guaranteed amount is payable to the nominee.

Decreasing Term Assurance (Loan Protection)

In this case, assured sum chosen at the beginning of the policy purchase, decreases each year. If the death of the policyholder occurs during the tenure of the term insurance, an applicable assured sum as upon the day of the demise is payable to the nominee.

Decreasing Term Assurance (Family Income Protection)

In this case, a certain sum chosen at the beginning of the policy purchase decreases each year. If the demise of the policyholder happens during the tenure of the term insurance, an applicable assured sum is payable to the nominee upon the day of the death.

Additional riders are useful for making the coverage by the term insurance plan even more comprehensive.

SBI Life Accidental Death Benefit Rider

This option, if chosen, pays an additional amount if there is an accidental death of the policyholder within the policy tenure.

SBI Life Accidental Total & Permanent Disability Benefit Rider

This option, if chosen, pays an additional amount if there is an accidental disability of the policyholder, which is total and permanent, within the policy tenure.

Accelerated Critical Illness Cover

Under this option, an additional amount is payable under the essential diagnosis of diseases. They must fall under the category of available riders of the SBI term insurance plan.

Rebates on SBI life term insurance premium

Option for Second Medical Opinion:

      • Choosing significant levels of sum assured.
      • Healthy people who are willing to become policyholders.
      • For female policyholders

Options for Premium Payment

Option for Second Medical Opinion:

      • Either with one lump sum payment under the option named Single Pay.
      • Or at a regular installment basis for the entire duration of the term, under the option named Regular Pay.

SBI Life Grameen Bima Term Plan

This micro-insurance plan is suitable for the backward economic classes, for their economic welfare and needs for insurance. The prospective policyholder needs to choose a viable premium amount that she/he can pay. Based on this premium amount, the coverage and benefits under the term insurance plan are as follows.

For this particular term insurance plan, you don't require the medical examination. The procedure gets issued based upon one simple medical declaration. Registration involves a simple form. Premium is payable in a single lump-sum at the beginning of the term insurance plan.

In the case of the policyholder's death during the term tenure, the calculated certain sum is paid to the nominee.

What is Not Covered in SBI Term Insurance

The following section discusses the areas that SBI Life Term Insurance plans do not provide cover for, i.e., exclusions of the policy.

Exclusion from Suicide

If the insured person commits suicide during the initial one year of the policy, right from the day of initiation, in that case, the life insurance policy does not provide any of the covered death benefits to the nominee. Now, if the policyholder commits suicide after the initial one year of buying the policy, then the beneficiary will receive 80% of the premium paid till then, only if all of the policy premiums are payable on time and the plan has not been surrendered/is in force.

Exclusion from Accidental Death Benefits

      • Infection
      • Drug Abuse
      • Self-inflicted injury
      • War or Civil Commotion
      • Criminal Acts
      • Aviation (flying other than as a passenger will not be covered)
      • Dangerous adventure sports
      • Life-threatening activities

Claim Process of SBI Term Insurance

Before you choose the term insurance plan that is right for you, it is indeed vital to get to know the process of claim settlement, as it differs from company to company. Also, any eventuality is generally unplanned so, efficiently processing the claim becomes a necessity in that dire consequence.

Before you choose the term insurance plan that is right for you, it is indeed vital to get to know the process of claim settlement, as it differs from company to company. Also, any eventuality is generally unplanned so, efficiently processing the claim becomes a necessity in that dire consequence.

Documents that ought to be kept at hand while filing for the claim are:

  • Original Policy Document.
  • Original or Attested Death Certificate by a Government official, stating the cause of death.

  • Claim Form (All relevant fields must be thoroughly filled).

  • Address Proof of the Claimant.
  • Bank Pass Book of the Claimant or Cancelled Cheque or Bank Statement.
  • Photo Identity Proof of Claimant.

Apart from submitting the documents mentioned above, the beneficiary needs to provide a written mandate for SBI to be allowed to transfer the amount claimed to the bank account of the nominee through NEFT processing.

Once the beneficiary of the policy submits the claim form along with the crucial documents, the insurance company verifies the claim form. After confirming the form thoroughly, the insurance company processes the claim and transfers the assured sum amount to the beneficiary's account.

Tax Benefits of SBI Term Insurance

Tax benefits for SBI life term plans are available based on the paid premium and the claim amount received. The payable premiums become tax exempted under Section 80C of the 1961 Income Tax Act. The claim that is collected is also tax-exempt under Section 10 (10D) of the Income Tax Act.

How to Buy an SBI Term Insurance Policy?

There are certain basic and fundamental factors that must be considered while buying any Insurance policy scheme. Some of these factors that prove the vital necessity of buying a life insurance policy are mentioned below.

Via Online

SBI Life offers a few online specific plans, namely SBI Life eShield, and SBI Life smart shield, which are exclusively available online. These are exceptionally user-friendly as the prospective customer needs only to log onto the official company website or any aggregator website which features these plans. Go to the Options section, choose any of the available SBI Life Insurance plans, then select the required coverage, and provide the necessary details in the specified fields. Based on the details that you have filled in, the requisite premium is then determined automatically. The payment of the premium can also be made online via either a credit card, or a debit card, or the facility Internet banking. These actions are subject to approval, and the chosen SBI policy is issued later.

Repayment of Loans

SBI term insurance plans that cannot be purchased online are available from agents, banks, brokers, etc.  These intermediaries help prospective buyers with their application process and subsequent approval.

How to Renew an SBI Term insurance policy?

Renewal of any SBI Life Insurance policy can be carried out by the following models, which are:

  • Online through the internet
  • Through sending toll-free SMS with specific codes

  • Through the personnel present at SBI Branches

  • Payment may be made online through debit/credit card, net banking, or cash through the intermediaries.

For the online renewal process, the policyholder has to login to his or her account on the official webpage, then click upon the 'Renew Policy' tab and proceed with the payment of requisite premium.

This Premium Payment option is present right on the Home Page; submit the specific Policy Number, registered Email ID, and Date of Birth. The digital payment acknowledgment slip is accessible from the ID.

If the policyholder chooses to opt for the case of Advance Premium Payment, the renewal receipt will be generated only after allocation/adjustment upon the due date of the premium is made.

Alternatively, the policyholders can choose to renew their policy processing by using the SBI ATM kiosks and selecting the specific option for the renewal process.

Required Documents for SBI Term Insurance Plan

The following documents are essential and should be kept at hand while purchasing any SBI term plan:

  • Proof of Identity: Passport, Aadhaar card, PAN card, ration card, driving license.
  • Proof of Address: rental agreement, Aadhaar card, passport, etc.

  • Proof of Age: matriculation certificate, birth certificate, aadhaar card, etc.

  • Proof of Income: salary slip issued by the finance officer, or the HR, Income Tax Return statement.
  • Latest medical reports.

SBI Term Insurance - FAQs

  • Q: How can a policyholder check the status of his/her policy as part of an SBI term insurance plan?

    Ans: The status of SBI term insurance policies can be checked online, by logging in to the specified e-portal. The policyholder needs to enter the customer ID, policy number, and date of birth. The policy details, as well as the current status of the policy, are then displayed upon the next screen.
  • Q: What is SBI Life’s procedure to settle claims made for the term insurance plans?

    Ans: Generally, the procedure for settling SBI life insurance's claims would require the policyholder to have to intimate the nearest branch with the submission of the document list as per the specifications mentioned on the website. The claim settles as soon as these documents are verified. If the policyholder needs additional help or clarifications, he or she may write to This email address is being protected from spambots. You need JavaScript enabled to view it..
  • Q: What is the process of policy cancellation for the SBI Life term insurance plans?

    Ans: The process for policy cancellation needs the policyholder to submit one surrender form, duly-filled, alongside the relevant documents to the nearest SBI branch. After receiving the documents, the branch personnel verifies them. The bank account records are then updated to reflect whether the policy has to be canceled. The refund on the value of the premium is calculated on the NAV value based upon the present market rate, only if you submit the cancellation before 3:00 PM. Otherwise, the NAV value of the next day becomes applicable.  
  • Q: Can I pay the SBI life insurance premium online?

    Ans: SBI Life has a self-service portal for its customers, named My Policy. If the customer is already registered there, he or she may pay the premium by logging in to it. If in case the customers are not registered, can visit www.sbilife.co.in for making the payment. Online premium payments may also be made a month in advance from the due date of premium.
  • Q: How can I pay my SBI life insurance premium?

    Ans: If you have an SBI Internet banking account, you may add SBI Life as a biller by logging in to your NetBanking account and clicking on the "Add Biller" option. Afterward, enter the number of the policy, amount of premium, and Date of Birth. You may then select any one of the "View and Pay," or "Auto" option as per convenience. The "Auto" option will debit the premium amount automatically at a regular interval.
  • Q: How can I check my SBI policy status?

    Ans: The policy check status provides a clear picture of the situation. It includes information regarding the nature of the policy and keeps them updated during the entire tenure. One of the most convenient and most comfortable methods of checking the status of an SBI life insurance policy would be by SMS. To know the state of the plan via SMS, the insured needs to send an SMS with the phrase POLSTATUS << Space>> (Policy Number) and send it to either 9250001848 or 56161.
  • Q: What is the premium paid certificate? How can I use it for a tax rebate?

    Ans: The ‘Tax/Premium Paid Certificate’ demonstrates the net amount of premium paid for all of his/her policies in one financial year by a policyholder. This certificate is available after all of the payments are completed, can be used as proof of investment for tax filing.
  • Q: How can a policyholder pay premium for his/her SBI term insurance plans? What modes of payment are available for the same?

    Ans: Currently, there are ten different modes for paying premiums for your SBI Life Insurance plans, which are as follows:
    • Direct remittance by post or by courier at the SBI Life branches
    • Through the Electronic Clearing Service or ECS by Mandate from the policyholder.
    • Direct debit from the existing SBI account of the policyholder.
    • Standing instruction can be made to your credit card billing cycle.
    • Online payment methods via debit card or NetBanking
    • Through the ATMs maintained by the State Bank Group.
    • Payment through the online payment portal at VisaBillPay.com
    • Online payment of premium through SBI Life website
    • SI-EFT for the account holders at the State Bank as well as the associate banks.
    • Payment through the terminals of Point of Sale (POS) at select branches of SBI Life.
    • Payments made through easy-to-access mobile application/mobile-friendly webpage.
    • Cash payment of premiums at the authorized collection centers of SBI Life.
    • NACH or National Automated Clearing House.

 

Written By: Paisawiki - Updated: 09 September 2020