SBI Smart Shield Term Plan

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 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.

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.

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.

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.

BI Smart Shield plan at a glance

Non-smoker rates

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.

• 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.

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.