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TERM INSURANCE

All About SBI Term Insurance

Ali Kirmani Ali Kirmani 11 December 2018

SBI term insurance Plans from SBI Life, is one of the most sought after and trusted names in the world of Life Insurance in India. The Insurance Company is a collaboration between the Indian banking giant State Bank of India and is the Life and Property & Casualty insurance arm of BNP Paribas, one of the strongest banks in the world. This collaboration has brought about the best of insurance and investment options for everyone across the country, with diverse offers for diverse needs.

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These options are life insurance plans, wealth creations plans, child plans, pension plans, etc. The large variety of insurance and investment options for the disposal income capacity, combined with the amazing reach of State Bank of India, has resulted in the corporation becoming an extraordinary entity inside the insurance zone.

Benefits From Various Life Insurance Plans of SBI

Loan: One may secure a loan on the Life Insurance Plans, in case money is urgently required at a later stage. Good Returns: Returns on insurance and investment plans are mostly more effective when you consider post-tax yields, in contrast with other investment options.

Tax Benefits: One will avail tax deductions on the paid premium under Section 80C and the money received upon maturity is free of taxation as per Section 10 (10D) of the Income Tax Act, 1961.

Dual Benefits: One will receive benefits of Life cover and saving money for future requirements as much as for raising your wealth via investments in the stock markets.

Riders Benefits: One may add riders such as critical illness, accidental death, or premium waiver etc. to increase the coverage level.

Financial Protection: Short and long-term objectives like a child's marriage etc. can receive planned funding, if one wants with or without their presence.

Various SBI life Term plans

  • SBI Life Income Shield – This is a pure term and income protection policy designed to provide regular monthly income for the insured’s dependents. This plan also considers the requirement for an increment in income benefit when living expenses go up with time.

  • SBI LIFE – SARAL SWADHAN+ This policy offers a fixed life cover across the term, together with maturity benefits. Benefits of up to 115% of the paid premium as per the policy term.

  • SBI LIFE – SMART SWADHAN PLUS - This plan has on offer guaranteed returns in the form of 100% return of basic premiums and protection of the family when the policy is in force.

  • SBI LIFE - SMART SHIELD - This is a traditional non-participating term life insurance that protects your family's financial future, in case something untoward happens to you. This is a pure term plan that comes with two options:

  • Level Term Assurance and Increasing Term Assurance.

  • Offer comprehensive coverage at an affordable cost with three rider options.

  • SBI LIFE - GRAMEEN BIMA- SBI Life – Grameen Bima is a pure term micro-insurance plan that stands for providing financial security for your family at affordable prices.

  • SBI LIFE - SARAL SHIELD - This will create a safety cover to defend your family's future and dream. This pure term policy has on offer largely affordable and simple plans in a bid to deliver financial protection for the whole family.

  • SBI Life – eShield - This contains a large number of benefits at very reasonable premiums. The shield comprises of two options with inbuilt Accelerated Terminal Illness Benefit.

  • Level Cover

  • Increasing Cover

Eligibility Criterion of Term Insurance

  1. The Min and max age of the policyholder should range from 18 years to 75 years. There can be variations in the same as per the term plan chosen by the proposer.
  2. The sum assured under the Term insurance policy is mostly calculated within the eligibility range which the insured person needs to choose as per his premium paying capacity.
  3. The policy term also varies from 5 to 30 years or more as per the plan chosen with various premium paying terms and modes available for the convenience of the policyholder.

Which is best SBI life insurance plan?

SBI Life Smart Shield and e-Shield are unique SBI term insurance plans which are popular due their diverse range of services for the insured.

A. Level Term Assurance – In this, the chosen sum assured stays constant across the tenure of the SBI term insurance plan and upon death of the life insured during the term, the assured sum is given to the nominee.

B. Increasing Term Assurance – This option ensures that assured sum chosen at the hour of inception of the SBI term insurance policy rises annually @5% for Smart Shield and @ 10% for e-Shield Plan and upon death of the insured during the plan tenure, the applicable increased sum assured is given to the nominee.

What should be kept in mind when buying a term insurance policy like SBI Term Insurance:

The following should be kept in mind while buying a term insurance policy like SBI Term Insurance-

  1. Compare: When comparing Term Plans, pay special attention to the product features & flexibility besides its price.

  2. Tenure: The rule is to select the tenure which is equal to your expected age of retirement subtracted from your present age.

  3. Online Purchase: Term plans available online are mostly cheaper than other products from the offline category, since online options remove intermediary commissions.

  4. Coverage Amount: This depends upon your income. The thumb rule is to seek 15 to 20 times of current annual income.

  5. Stop Smoking: This is effective. Stop smoking and purchase the policy after waiting for a few years at a lesser premium rate and avail a smaller premium.

  6. Early Entry: The earlier you purchase this plan, the lesser will be the premium rates. Age influences the premium amount massively.

Ali Kirmani
Written by Ali Kirmani
Has a passion for helping marketing teams in all aspects of content strategy. When not crafting content, he loves to read philosophy, appreciate cinema and indulge in photography.