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You work hard and invest your savings to ensure that your loved ones can get the best standard of living possible. You achieve success in your career and simultaneously increase your investments, so that when you reach your retirement age, you can realise your dreams in time. While you might feel that you have a perfect plan, there is one major gap in your planning. Have you ever given a thought to the fact that what if you are not there due to premature death?
If you have not given it a thought, just imagine what your family will go through when you are no longer alive. They will have to settle your liabilities in terms of loans and perhaps not even have the income to maintain the standard of living they were used to. They may have to sell off your belongings and could have a very difficult time.
It is for these unfortunate events that you need to be proactive about protecting the interests of your family. Thankfully, there are very economical ways to protect them and the solution is a term plan. A term plan is a pure insurance product which means that you will not get any survival benefits. It is not linked to the stock market, so there would be no fluctuations in the sum assured. For a very nominal premium, you can get a high insurance cover for your family.
Terms plans are purely for protection and you should not expect any returns from them. Returns should be expected from investment products like endowment insurance plans, money back insurance plans, mutual funds, fixed deposits and so on.
This term plan offered by SBI is the basic form of life insurance. The accidental death benefit is optional. This is a non-participating (you are not entitled to a share of the profits and there is no investment component), pure insurance plan and there are no survival benefits. It is non-linked plan which means that there is no exposure to stock markets. Being a pure insurance plan with no survival benefits, and you pay a very low premium for a very high coverage. The policy can be customised to your needs so that your family is adequately protected. In the event of the death of the life insured within the policy period, the sum assured will be paid to the nominee.
The SBI eShield Term Life insurance plan is a pure term insurance plan that has regular premium paying options. As far as coverage goes, there are two plan options from which you can opt for, depending on what your financial objectives are. These are:
Level cover with inbuilt Accelerated Terminal Illness benefit
Under the level term assurance option, there is no change in the sum assured throughout the entire duration of the policy. The nominee in the policy gets the sum assured during the death of the policyholder.
Increasing cover with inbuilt Accelerated Terminal Illness benefit
Under the increasing term assurance plan, there is an increase in the basic sum assured at 10% simple interest on the end of every 5th policy anniversary with the premium remaining the same.
Accelerated Terminal Illness Benefit:
On the Life Assured being diagnosed with terminal illness, the benefit equal to death benefit would be paid and the policy will terminate. Terminal illness is defined as the conclusive diagnosis of an illness that is expected to result in the death of the life assured within 180 days.
The most important benefit of the SBI Life eShield is the ease of getting the policy. Here are the steps to get the SBI Life eShield life insurance policy online.
Now, you need to fill in the details of your nominee. It is very important for you to know that the details of the nominee can be changed any time during the policy period.
It is important to check all the information entered by you one last time before submitting the information and proceeding to make the payment. Once you are satisfied that all the information is correct (including nominee details), you can then proceed to make the payment of your premium.
The last step in the online policy purchase would be providing the self-attested KYC (Know Your Customer) documents and Anti Money Laundering Act (AML) documents.
There are several benefits that accrue to the nominee, in case of death of the policyholder.
The nominee will be entitled to the sum assured under the policy in the event of the death of the life insured. If you have opted for the increasing cover, there is an increase in the sum assured by 10% calculated on the basis of simple interest after the completion of every 5th policy anniversary.
The SBI eShield life comes with an inbuilt Accelerated Terminal Illness benefit with both plan options. Premiums paid for life insurance policies are eligible for income tax deductions under Section 80C. The maturity value of the policy is exempt from income tax under Section 10 (10D) of the Income Tax Act, 1961.
When it comes to eligibility for this policy, the minimum age for this plan would be 18 years and in case of level cover, the maximum age for this category would be 65 years.
In case of increasing cover, the minimum age is also 18 years and the maximum age is 60 years. The maximum age at the end of the policy term for the policyholder can't be more than 75 years for Level Cover Benefit and 70 years for Increasing Cover Benefit.
|Entry Ege( last birthday)||18 Years||60/65 Years|
|Maturity Age (last birthday)||_||70 Years|
|Policy Term (PT) in Years||5 Year||30 Years|
|Premium Paying Term(PPT) in year||Equal to Policy Term||--|
|Premium Paying Frequency||Annual||--|
|Yearly Premium||3500||Single Pay 10000|
|Sum Assured||20,00,000||No limit|
Details about sbi life term insurance premium
|Annual Premium in Rupees for a policy term of 20 year and SA of 50 Lacs|
|Age||Male Lives||Female Lives||Smokers||Non-Somkers||Smokers||Non-Somkers|
The documents required for making an individual death claim with SBI Life Insurance are as follows:
Source: SBI Life Insurance
The SBI Life eShield plan cannot be surrendered, however one can make a request to get the policy terminated.
Free look period
After inspecting the policy document, if you find that the SBI life eShield plan does not meet your requirements in terms of coverage and other terms and conditions, there is an option to cancel the policy within 15 days of receipt of the policy related documents. It is important to remember that there shouldn't have been any claims made during this period. The premium will be refunded to you after the deduction of certain charges.
Additional features or riders
The SBI Life eShield plan rewards discounts for two categories of applicants, namely non-smokers and females. There is a substantial discount offered to these two categories of the population.
Even though, like any other term insurance plan, your nominee would get the sum assured, in the event of your death, there are certain exclusions with regard to such life insurance plans. Exclusions are ways by which insurance companies protect themselves, in specific cases which don't come under natural death or accidental death.
If the life insured commits suicide within 12 months since the inception or revival of the policy, the nominee will be entitled to only 80% of the total premiums paid.
In case of the accidental death benefit rider, there are certain exclusions as well. If an accident is a result of events such as criminal acts, war or civil commotion, self-inflicted injury, drug abuse, or infections happen, your nominee will not be entitled to anything.
When it comes to the protection of your loved ones, you should not make any compromises. Whether you are alive or not, you need to ensure that your loved ones enjoy the same standard of living. It is also important that the dreams of your children like their higher education and marriage take place at the right time and there should be no shortage of funds.
SBI’s eShield offers you a lot of flexibility with both, level as well as increasing cover term assurance plans. Some of the options come with inbuilt Accelerated Terminal Illness benefit so that if you were to die due to a terminal illness, the entire sum assured will be paid to you before your death.
So, get your peace of mind and enjoy life to the fullest with SBI eShield.