• Term Life
  • Investment

Introduction of SBI Term Insurance

SBI Life Insurance is a business partnership between the State Bank of India and BNP Paribas Cardif S.A. SBI Life Insurance was awarded as “Life Insurance Company of the Year” and “Bancassurance Leader Life Insurance” at the Indian Insurance Awards in the year 2016.

SBI offers a wide range of insurance products to cater to the needs of the people seeking insurance in different segments of insurance. . SBI life insurance provides both individual and group plans. It has nearly 23000 branches across the country to provide claim settlement support to its customers.

SBI eIncome Shield Term Plan

SBI eincome shield plan is a non-linked, online term life insurance, and income protection plan offered by SBI Life Insurance Company. The plan has been designed to act as a shield that can protect the regular monthly income of the policyholder. Under SBI eincome shield plan, a monthly income can be planned for the nominee after the death of the policyholder. A policyholder makes regular contributions during the policy term to receive monthly income in terms of payout. This plan helps the policyholder to ensure financial security for their family in the form of regular monthly income and a lump sum amount which is 12 times the monthly income at the time of claim.

At the beginning of the policy, the policyholder has an option to choose from four different types of benefits. It is important to note that, once the selection is made it cannot be changed during the entire policy term. Customers can obtain detailed information and purchase the policy from the official website of SBI Life Insurance epolicy.sbilife.co.in. Customers can buy this policy in a few simple steps where they need to fill up an online form and provide details pertaining to personal, nominee, health and other information with self-attested KYC documents. The payment can be made through different options including debit card, credit card, and internet banking.

Features of SBI eIncome Shield Term Plan

SBI Life eincome Shield policy is a pure term plan with monthly income where no maturity benefit or bonus is provided. Following are some key features of this plan.

  1. Free look period: SBI Life Insurance provides a free look period of 30 days which means if the customer is unhappy with the policy terms, he/she can cancel the policy within 30 days from the purchase date. The customer is required to return the policy documents and is required to give a reason to cancel the subscription. The company will refund the advance premium paid in a defined term. The other charges such as stamp duty, medical expenses have to be borne by the customer and will be deducted from the refund.
  2. Surrender benefit: It is important to note that there are no surrender benefits available under this plan. This means, if the policyholder discontinues the policy between the policy term, no refund or benefits are applicable in such a case.
  3. Grace period: The policyholder is provided with 30 days of grace period to pay yearly premium and 15 days in case of monthly premium. The grace period is the extra days provided to make the premium payment.
  4. Policy revival: The policy is considered lapsed if the policyholder fails to pay the premium within the grace period. In such cases, a lapsed policy can be revived within two years from the premium of the first unpaid premium date.
  5. Benefit and premium flexibility: SBI Life eincome shield plan provides flexibility to the customers in terms of premium payment, policy term, and policy benefits. The policy allows the insured to make premium payments on a monthly or yearly basis. Additionally, the policyholder can choose up to 100% of the current monthly income. The plan offers four benefits options to choose from in order to increase the amount of monthly income. The policyholder can choose the policy tenure between 10 to 35 years as per his/her requirements. However, the age of the policyholder is taken into consideration while selecting the policy term.
  6. Nomination: The company obtains the nominee details at the time of the commencement of the policy. The policyholder is allowed to change the nominee within the policy term by contacting the company.

Benefits under SBI eIncome Shield Term Plan

SBI eincome shield plan provides an extensive range of benefits and flexibility to choose between different benefits options.

Benefit options: At the time of purchasing the policy, the insured is provided with four benefit options to choose from. Based on the option, a certain amount of simple interest percentage is applicable to increase the monthly income benefits. The policyholder can choose any one of the following benefit options:

  • Option A: No increase in the monthly income throughout the policy term.
  • Option B: An increase of 3% simple rate of interest to the monthly income, after completion of each policy year.
  • Option C: An increase of 5% simple rate of interest to the monthly income, after completion of each policy year.
  • Option D: An increase of 10% simple rate of interest to the monthly income, after completion of each policy year.

The chosen benefit option is applicable throughout the entire policy term and cannot be changed. It is advisable to read and understand the given benefit options under this policy and select the most suitable option.

Premium option: Under the SBI eincome shield plan, the policyholder can choose from the following types of premium options: Annual premium: Under this option, the policyholder needs to pay a minimum premium of Rs. 4500 on a yearly basis. There no maximum limit for annual premium amount.

Monthly premium: Under this option, the policyholder needs to pay a minimum premium of Rs. 500 every month. There is no maximum limit on the monthly premium amount.

The premium amount paid under SBI Life eincome shield plan is equal to the policy tenure. Moreover, the premium amount doesn't include taxes, underwriting fees, and cess. The taxes are based on the current tax regulations and are subject to change from time to time.

The policyholder is required to pay the advance premium for three months in case he/she chooses to pay monthly premiums. Policyholders who are qualified for monthly Salary Saving Scheme (SSS), are required to pay an advance premium of two months.

The policyholder is required to choose the premium payment option at the time of purchase of the policy. The premium amount and increment rate are calculated based on the insured’s age and the policy tenure.

Eligibility Criteria

The customers need to meet the following criteria to purchase SBI Life eincome shield policy.

ParameterEligibility
Minimum age to enter the plan18 years
Maximum age to enter the plan50 years
Maximum age at maturity60 years
Policy termMinimum 10 years, a maximum of 35 years
Premium payment termBased on the term of the policy
Monthly income Minimum Rs.25000 per month. No ceiling limit. (However, it has to be in multiples of 1000.)
Monthly income payout termA minimum term is 48 months (irrespective of the time of death)

Plans offered under SBI eIncome Shield

SBI Life Insurance eincome Shield Plan allows the policyholder to generate regular monthly income if he/she encounters unfortunate death. The nominee is entitled to get the policy benefits. Since SBI eincome shield is a pure term life insurance, no maturity benefits are offered under this plan. Below is the coverage offered under SBI eincome shield plan.

Death benefits: SBI eincome shield plan provides death benefits to the nominee in the event of the death of the insured. The death benefit is payable in the form of monthly income in addition to a lump sum amount. In case the policyholder dies during the policy term, the nominee will receive a lump sum amount which is equal to 12 times of the monthly income applicable. In any event, the nominee is entitled to the higher of the three options listed below.

  • 12 times of the monthly benefit that is paid out in case of death

  • 10 times of annual premium

  • 105% of the total premiums paid till the date

Monthly income benefit: In the event of the policyholder’s death, the nominee will receive monthly income for the remaining policy term in addition to the lump sum amount. The monthly payout will begin from the date of policyholder’s death. If the policy lasts for less than 48 months, the nominee is still entitled to receive monthly payouts. The monthly payout will continue for a minimum of 48 months from the date of policyholder’s death.

Other details of SBI eIncome Shield plan

Tax benefits: The SBI eincome shield plan offers tax benefits under The Income Tax Act, 1961. The tax benefits are based on the current tax regulations and are subject to change. This plan provides the following tax benefits.

• Under Section 80 C and Section 10 (10D) of the Income Tax Act, 1961 the premiums paid towards non-liked term insurance and income protection plans are subject to exempt from taxation up to a certain amount.

• The death benefits are exempted from taxation.

Riders: No riders or add-ons are available under the SBI eIncome Shield plan.

For female and non-smokers, the premiums are lower.

In addition to tax benefits and lower premiums for female and non-smokers, SBI life’s eincome shield plan enables the policyholder to manage the ever-rising cost of living through the systematically increasing monthly income.

Premium illustration

Below are the premium rates payable by males and females for different lifestyle options. It is a sample annual premium for a 30-year old individual with a monthly income of Rs. 30,000.

GenderSmoker/non-smokerPolicy term in yearsBenefit optionAnnual premium in rupees
FemaleNon-smoker30A4,099
Femalesmoker30A5,853
MaleNon-smoker30A5,340
Malesmoker30A8,009
FemaleNon-smoker30A6,068
Femalesmoker30A8,869
MaleNon-smoker30A8,107
Malesmoker30A12,354
FemaleNon-smoker30A7,388
Femalesmoker30A10,885
MaleNon-smoker30A9,955
Malesmoker30A15,252
FemaleNon-smoker30A8,987
Femalesmoker30A13,379
MaleNon-smoker30A12,246
Malesmoker30A18,897

Documents required for SBI eIncome Shield Plan

The documents needed to process SBI eincome shield plan are:

PAN card: PAN card is a mandatory document for buying this plan.

Age proof: The age proof can be any of these – Driving license, School/college certificate, Passport, PAN card, Birth Certificate.

Identity proof: Voter ID, driving license, PAN card or Aadhar card can be used an identity proof.

Address proof: Electricity bill, Bank account statement can be presented as the proof of address.

Income proof: Income tax return or employer certificate can be presented as an income proof at the time of purchasing the policy.

Exclusions – SBI eIncome Shield Term Plan

Below is the list of circumstances that SBI eincome shield plan doesn’t cover.

  • Suicide: If the policyholder commits suicide within 12 months from the purchase of the policy, whether sane or insane, the nominee is eligible to receive 80% of the total premiums paid till date. This is applicable for the revived policies as well.

  • Loan option: There is no provision to obtain a loan against SBI Life eincome shield plan.

  • Benefit option: The policyholder has to choose the benefit option at the time of inception of the policy which cannot be changed during the entire policy term.

Review of SBI eIncome Shield Term Plan

As the name suggests, SBI Life eincome shield plan provides financial security in the form of monthly income. SBI’s eincome shield is a traditional, non-linked term insurance plan which is also called as an income protection plan, that helps the family of the policyholder to maintain their lifestyle even after the policyholder passes away. Under this plan, the nominee will receive monthly income post the death of the policyholder.

The policyholder has four options to choose the policy benefits. The monthly income increases every year based on the benefit option selected by the policyholder. At the time of making a claim, the company pays a lump sum amount of 12 times the applicable monthly income. The nominee will receive a monthly income of minimum four years irrespective of the time of death.

The plan offers an additional benefit to females and non-smokers in the form of a lower premium.

FAQs on SBI Life eincome Shild Term Plan

What is SBI Life eincome shield plan?

SBI Life eincome shield plan is a traditional non-linked term insurance policy that ensures a monthly income for your family. You can ensure financial safety for your family through this plan when you are not around.

Who can buy SBI Life eincome shield?

Any Indian national age between 18 to 50 years can buy this policy. This plan is suitable for those who wish to financially secure their family in their absence in the form of regular monthly income.

What are the highlights of SBI Life eincome shield plan?

Some key features of SBI Life eincome shield plan are as below:

  • Flexibility to select benefit option.
  • The product allows you to ensure your entire monthly income or a part of it.
  • A lump sum payment after the death to meet the immediate needs of your family.
  • The monthly payout is given on the death to meet day to day expenditure.
  • The premiums are lower for non-smokers and females.
  • Tax benefits can be availed under The Income Tax Act, 1961

How does SBI Life eincome shield plan work?

SBI Life eincome shield plan works in a very simple manner.

You have to select the monthly income you wish to cover, the policy term, and the benefit option at the time of purchasing the plan.

Depending upon your current age, monthly income, policy term, and the benefit option, the premium will be determined.

You need to pay the pay the premiums regularly in order to enjoy the policy benefits.

In case of death of the insured, a lump sum amount and monthly income will be paid to the nominee/family of the policyholder.

Since it is a term plan, no maturity benefits are payable under this policy.

What benefit options does this plan offer?

SBI Life eincome shield plan offers four different benefit options. Option A: No increase in the monthly payout throughout the policy term.

Option B: An increase of 3% simple rate of interest to the monthly income, after completion of each policy year.

Option C: An increase of 5% simple rate of interest to the monthly income, after completion of each policy year.

Option D: An increase by 10% simple rate of interest to the monthly income, after completion of each policy year.

What is the premium payment frequency allowed under SBI Life eincome shield plan?

The premiums under this plan can be paid either monthly or annually.

What are the benefits offered in case of death of the assured?

In case of unfortunate death of the policyholder, the company will pay the following benefits.

  • Lump sum benefit: This benefit would be equal to 12 times monthly income applicable as on date of death.
  • Monthly income benefit: In the event of the policyholder’s death, the nominee will receive monthly income for the remaining policy term in addition to the lump sum amount. The monthly payout will begin from the date of policyholder’s death.

What are the maturity benefits of SBI eincome shield plan?

Since it is a term life insurance, no maturity benefits are offered under this plan.

Can I get a loan against SBI life eincome shield policy?

You can not take a loan against SBI Life eincome shield policy.

Is there any free-look period for SBI Life eincome shield plan?

SBI Life Insurance provides a free look period of 30 days which means, if the customer is unhappy with the policy terms, he/she can cancel the policy within 30 days from the purchase date. The customer is required to return the policy documents and a reason to cancel the subscription. The company will refund the advance premium paid in a defined term. The other charges such as stamp duty, medical expenses have to be borne by the customer and will be deducted from the refund.