• Term Life
  • Investment

Introduction Of SBI life Insurance

SBI Life is one of the most trusted private life insurance companies in India. SBI Life Insurance Company Limited established in 2001, is a joint venture between the State Bank of India and BNP Paribas Cardif S.A. SBI has an unrivalled strength of nearly 23000 branches across the country making it one of the largest banking groups in India.

Over 18 years, The SBI Life Insurance have come up with various insurance products for the benefit of its customers. SBI Life continually works to provide the latest technology and tools to the policyholders to make insurance buying and claiming process simpler

SBI Smart Shield Term Plan

SBI Smart Shield policy is a traditional, non-linked, pure term plan offered by the SBI. It is a one-stop solution to meet all your insurance related needs. Smart shield plan is designed in such a way that your family and loved ones are financially protected in any unforeseen circumstances. In case if you are not around, the smart shield plan ensures the financial protection of your dependents.

The plan can be customized with riders such as accidental death, and critical care. The plan also rewards the policyholder for maintaining a healthy lifestyle.

Features of SBI Smart Shield Plan

It is important to give your family adequate protection to meet their financial needs. The SBI -Life Smart Shield Plan is tailored to suit individual requirements with the best financial security at an affordable cost.

Coverage: Since it is pure term life insurance, the policy does not cover any survival benefits at the end of the policy term. The coverage can be customized by adding riders such as SBI Life accidental death rider, SBI Life accidental total and permanent disability benefit rider and SBI Life – Criti Care 13 Non-Linked Rider. SBI Life – Smart Shield plan provides a premium discount for a healthy lifestyle. The policyholder can enhance level term assurance and increasing term assurance.

Surrender period/value: The policy holder can certainly surrender this insurance plan post completion of the second year. The surrender value depends upon the plan option opted by the policyholder.

Plan optionsSurrender value
Level term assuranceSingle premium x 75% x outstanding term on maturity/total term
Increasing term assuranceSingle premium x 80% (outstanding term on maturity/total term) x Average of effective sum assured at surrender and effective sum assured at the time of maturity/ Average of initial sum assured and effective sum assured at maturity)

Grace period: On failure of monthly premium payment, the policyholder is allowed for a 15 days grace period, and for any other mode of premium payment the grace period is of 30 days. If the policyholder fails to make the premium payment even within the grace period, the policy is subject to lapse.

Free-look period: In case you are not satisfied with the policy terms, you can cancel it within 15 days from the date of purchase of the policy. Upon such cancellation, the insured will be paid back the advance premiums in the defined time period. However, the policyholder will have to bear expenses such as stamp duty and medical reports.

Revival facility: In case the policy has lapsed, you can start enjoying the benefits by reviving it. A lapsed policy can be restored within two years from the date of the first unpaid premium — a satisfactory proof of insurability as required by the company.

Nomination and assignment: Nomination for Smart Shield plan is allowed as per Section 39 of the Insurance Act 1938, as amended from time to time. Assignment of the Smart Shield plan is permitted as per Section 38 of the Insurance Act 1938.

Benefits of SBI Smart Shield Term Plan

The SBI Smart Shield plan provides the following benefits.

Death benefits: In case of the unfortunate demise of the life assured during the policy term, the nominee will receive the death benefits depending upon the plan option chosen by the policyholder.

In the case of level term insurance, the sum assured will be given as a benefit on death of the policyholder. In the case of increasing term assurance, the effective sum assured as on the date of death which will be grown at 5% simple rate of interest per annum will be given as a death benefit.

Maturity benefits: No maturity benefit is available under this plan.

Eligibility Criteria of SBI Smart Shield

The customer needs to fulfill certain criteria with respect to age and, premium amount and policy term in order to purchase SBI Smart Shield Plan. These criteria are as shown in the table below:

ParameterEligibility
Minimum entry age of the plan18 years
Maximum entry age of the plan65 years
Maximum age at maturity70 years
Plan options
Decreasing term insurance (Family income protection)
Decreasing term insurance (Loan protection)
Increasing term assurance
Level term assurance
Policy termMinimum: 5 years, Maximum: 30 years
Premium paying term
Regular premium: Premium can be paid throughout the policy term
Single premium: Pay premium once till the end of the policy term

Plans offered by SBI Smart Shield Plan

When it comes to planning for unforeseen events, you need a robust solution that can meet immediate and future needs of your family. It is important to be careful while making decisions to ensure the financial safety of your family.

Depending on the plan chosen by the policyholder, the nominee will receive the policy benefits.

Level Term Insurance: A level term plan ensures that your family is able to maintain the lifestyle that they currently enjoy. You can choose level term insurance if you wish to go for level cover throughout the policy term. It comes with an affordable cost, and you can choose the sum assured keeping in mind the future requirements of your family.

Increasing Term Insurance: Increasing term insurance is the best option if you want to ensure that there is absolutely no compromise on your financial future. Increasing term insurance helps you to increase your insurance coverage every year for a small additional premium. In simple terms, when you opt for increasing term insurance, you do not need a separate policy even if your liabilities increase.

Decreasing term insurance (Loan protection): Decreasing term insurance is applicable only if you have taken a mortgage to buy a home or car for your family. This option helps you to match your budget and cover outstanding liabilities. Your family can repay the debt as per the schedule in case of any unfortunate event. The schedule to pay the outstanding loan will be based on the rate of interest of the loan. The policy has interest rates available for loan repayment schedule are 6%, 8%, 10%, 12%, 14%, 16%, 18% and 20%.

Decreasing term insurance (Family income protection):

Under this option, the sum assured you have chosen will be divided by the total term that you have chosen and the amount will be paid to your family as a policy benefit. Additionally, the nominee can ask for the discounted value of the remaining payouts.

Other details of SBI Smart Shield Plan

Tax benefits: The premiums paid under SBI Smart Shield policy are eligible for tax exemptions under Section 80C of the Income Tax Act, 1961. The death benefits are eligible for tax deductions under Section 10(10D) of the Income Tax Act, 1961.

Riders: Following are the riders available under SBI Smart Shield plan

  • Accidental death benefit rider: This rider provides an additional benefit equal to rider sum assured if the death of the policyholder occurs due to an accident.

  • Accidental total and permanent disability benefit rider: This rider give the benefit if the policyholder becomes incapacitated during the policy term and not able to generate any income from work for the rest of his/her life.

  • Critical care 13 non-linked rider: This rider provides a lump sum amount to the policyholder to take care of critical illness if he/she gets diagnosed with the 13 critical illnesses as mentioned in the policy document.

Product details

BI Smart Shield plan at a glance

Minimum of 18 yearsMinimum of 18 yearsMaximum 60 years
Age at maturityMaximum 80 years
Age at maturity
1. Level term assurance
2. Increasing term assurance
Sum assuredMin: 25,000 (in multiples of Rs. 1,000)Max: No limit. (Subject to board approved underwriting policy)
Policy termMinimum: 5 yearsMaximum 30 years (depending upon the age at entry)
Premium paying termSingle /regular premium
Premium modesSingle premium, yearly, half-yearly, quarterly, monthly.
Premium frequency loading
Half-yearly: 51% of annual premium
Quarterly: 26% of the annual premium
Monthly: 8.5% of annual premium

Premium details

Premium frequencyMinimum amountMaximum amount
Single premiumRs. 11,000No limit
Yearly premiumRs. 3,000No limit
Half-yearly premiumRs. 1,500No limit
Quarterly premiumRs. 750No limit
Monthly premiumRs. 300No limit

Non-smoker rates

Category/policy term15 years20 years25 years
SmokerRs. 8,451Rs. 10,071Rs. 11,975
Non-smokerRs. 6,687Rs. 7,785Rs. 9,126

Documents required for SBI Smart Shield Term Plan

Documents required to process SBI Smart Shield policy include:

Age proof: Driving license, school/college certificate, Passport, PAN card, birth certificate.

Identity proof: Passport, voter ID card, a letter from recognised public authority with photograph verifying the identity and address.

Address proof: Electricity bill, telephone bill, Bank account statement, Aadhar card, Passport, voter ID card.

Income proof: Employer’s certificate, Income Tax return, Assessment Order.

Exclusions under SBI Smart Shield Term Plan

  • In case the policyholder dies by committing suicide during the first policy year, or within the year from policy revival, no death benefit is payable in such case. Additionally, if the life assured under the policy, whether sane or insane, commits suicide within one year of policy term with increased sum assured, then the amount of increased sum assured will not be considered while calculating the death benefit.

  • No benefits are given under the accidental death of the policyholder due to an infection except the infection caused due to external wound, or the insured is under the influence of drugs, or involvement in a war, riots, involvement in any criminal activity, self-inflict injury, nuclear contamination radioactive or participation in any hazardous activity.

  • For critical illness rider, pre-existing diseases or diseases occur within 90 days from the purchase date of the policy, alcohol abuse, or are due to HIV infection, etc are excluded from the cover.

  • Taking part in any naval, military or air force operations during peacetime is excluded from the policy coverage.

  • Failure to seek medical advice in illness.

  • Any disease occurring within 90 days from the purchase of the policy or policy renewal are excluded from the coverage.

Review of SBI Smart Shield Term Plan

Smart Shield policy from SBI Life Insurance is a pure term insurance product that gives your family a protection in case of your unfortunate death. It is a single term policy that can suffice your entire insurance needs.

SBI Smart Shield comes with different plan options. Level term assurance is usual term insurance where the sum assured remains constant during the policy term. Premiums are the lowest in the case of level term plan. In the case of increased term assurance, the sum assured steadily increases every year, and the premium remains constant. However, the premium rate is higher. The decreasing sum assured (loan protection) plan gives death benefits equivalent to the value of the outstanding loan at the time of the death of the insured. Premium rate depends on the interest rate of the loan. The decreasing sum assured (family income protection) is a single premium plan. It is advisable to buy this plan if you are close to your retirement and expect your household expenses to decline steadily in the future.

Critical illness cover and accident cover are the additional benefits offered with this policy.

No survival benefits are given at the end of the policy term.

FAQs on SBI Life shield Term Plan

What is the SBI life Smart Shield plan?

SBI smart shield plan is a non-participating, pure term insurance plan that is designed to provide financial security to your loved ones.

What are the plan options offered under SBI Smart Shield plan?

Four plan options are available to the policyholder under SBI Smart Shield plan.

  • Level term insurance
  • Increasing term insurance
  • Decreasing term insurance (Loan protection)
  • Decreasing term insurance (Family protection)

What are premium payment modes available under SBI Smart Shield plan?

The premium can be paid single (lump sum), monthly, quarterly, half yearly and yearly.

Why should I opt for an accidental death benefit?

The accidental death benefit enables the nominee to receive the additional benefit of sum assured along with the base sum assured in case of death of the policyholder due to accident.

Can a loan be taken under SBI life Smart Shield plan?

Loan facility is not available under SBI smart shield policy.

What illnesses are covered under the critical illness rider cover?

Following illnesses are covered under critical illness rider. Cancer, heart attack, kidney failure, major organ transplant, paralysis, stroke, coronary artery bypass surgery, major burns, surgery of aorta, coma, and motor neuron disease are the illnesses that are covered under the critical illness rider cover.

If the premium is not paid on time, how will it affect the policy?

The policy lapses in case of non-payment of the premium within the grace period.

What are the conditions for reviving/restoring the policy?

The Smart Shield plan can be revived within two years from the due date of first unpaid premium. However, the company may ask for a satisfactory proof of insurability in such case.

Can I change the nominee? If yes, how?

Changing the nominee during the policy term is possible. You can contact SBI life insurance or visit the nearest branch to complete the formalities.

How to buy SBI Smart Shield plan?

You can buy the plan from nearest SBI life branch or request a call back by visiting the official website of SBI Life Insurance.

Can rider amount exceed the sum assured?

The rider amount cannot exceed the sum assured under the Smart Shield policy. The premiums for all riders including accidental death benefit and critical care rider cannot be more than 100% of the base policy premium.

Why should I buy SBI smart shield plan?

SBI Smart Shield plan is a one-stop solution to meet your insurance needs. Below listed are the key highlights of this plan:

  • This plan establishes a foundation for a lifetime financial security for your family at an affordable cost.
  • Smart Shield plan rewards you for maintaining a healthy lifestyle. The premiums are lower for non-smokers.
  • Family protection and loan option give your family complete freedom from liabilities.
  • Rebates are given on large sum assured.
  • It is possible to customize the coverage by adding critical illness and accidental death benefit rider to the policy.
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