Is SBI Life Smart Shield Term Insurance Plan Good?

SBI Smart Shield Term Insurance Plan

One of the best SBI Term insurance plan is Smart Shield Term insurance plan. This is a pure term insurance plan which has several riders, benefits and one can chose based on individual requirement. SBI Life has a claim settlement ratio of 94%+ in last 2 years. It ranks among the top 3 private insurance companies in terms of high settlement ratio. It is ranked as no. 1 in terms of collection of premiums for new insurance policies. How good is this SBI Term Insurance plan Smart Shield? This review and analysis is based on request from Swapna Katari on Suggest a topic. This topic was covered at summary level under Best Term insurance plans in India article which we published earlier. However, we are covering now, in detail with complete analysis.

Main Features of SBI Life Smart Shield Term Insurance Plan


  • This is one of the best term insurance plans in India (Offline)
  • It rewards to you, if you maintain a healthy lifestyle (Non smoker)
  • Term insurance plan available in 4 different options
  • Rebate on large sum assured
  • Comes with critical illness rider benefits

Also Read: What are the best term insurance plans in India?

Other Features of SBI Life Smart Shield Term Insurance Plan


  • Minimum age of entry: 8 years
  • Maximum age entry: 60 years
  • Maximum age at maturity: 65 years
  • Minimum maturity sum assured: Rs 25 Lakhs and multiples of Rs 1 Lakh thereof
  • Maximum Sum Assured: No limit
  • Policy term: 5 to 30 years
  • Premium: Single premium and regular premiums. For regular premiums, they are payable monthly, quarterly, half-yearly and yearly except for Decreasing term assurance options.

What are various plan options available?


a) Level Term Assurance option: This is a simple term insurance option where nominee gets sum assured in case of death of the insured person.

b) Increased term assurance option (5% p.a.): This provides increased sum assured amount year on year. This is a good option to choose in case you want your family to consider inflation and live high standard of living.

c) Decreased term assurance (Loan Protection): This option is for individuals who have a home loan or  car loan and want to take high  protection now and want to decrease term assurance once this is paid off. This option is not available for others.

d) Decreased Term Assurance (Family income protection): This is another unique option where the sum assured would be reduced during the policy term and during the death of insured, the nominee would get either regular monthly payments or can opt for lump sum payment which is available for distribution based on decreased term assurance policy.

Your premiums would get reduced year on year in decreased term assurance options.

Illustration of premium amount


Considering a non-smoker who is opting for Rs 50 Lakhs Sum assured for a 25 year policy tenure.

  • Premium for 30 years individual would be approx Rs 9,000
  • Premium for 35 years individual would be approx Rs 13,000
  • Premium for 40 years individual would be approx Rs 18,500

What are the benefits?


1) Death Benefit: In case of unfortunate death of insured, his/her nominee would get sum assured as per policy document and as per the option chosen.

2) Maturity Benefit: Since this is a pure term insurance plan, there is no maturity benefit available

3) Other benefits:

  • Accelerated Critical Illness Benefit: For level term assurance and increased term assurance options, you can enhance sum assured by opting for accelerated critical illness benefit.
  • Accidental death benefit rider: You can opt for this rider and apart from the normal death benefit, the nominee would get accidental death benefit under this option
  • Accidental Total and permanent disability benefit rider: If you opt for this option, you may be charged with additional premiums, but in case of permanent disability due to accident sum assured would be.

4) Income tax benefits: Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C of income tax act and the maturity amounts are tax free under section 10 (10) D subject to fulfillment of terms and conditions.

Also Read: Best Mediclaim Policies in India

Are there any special rebates on premiums?


Yes, SBI Smart Shield offers below rebates on premiums

Maturity amount               Rebate on premiums

Rs 50 Lakhs – Rs 1 Crore      7% of regular premium

Rs 1 Crore and above          7% of regular premium + Rs 25 for every 1 lakh of sum assured

Is there any Loan facility?


Since there is no surrender value for this policy (if surrendered during a year, you would get a partial premium for that year), there would not be any loan facility.

SBI Life Smart shield brochure can be downloaded here

Conclusion: There are several good features of SBI Smart Shield Term insurance plan. If you pay additional premiums, you would get riders and additional benefits. SBI Life has a high settlement ratio. Considering all these features, you can opt for such term insurance plan. Alternatively, you can review, ICICI Life term insurance plan and HDFC Life Term insurance plan to which have high settlement ratios.

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Suresh
SBI Life Smart Shield Term Insurance Plan

36 comments

  • dhruv

    Can you provide detailed review about Aviva iLife insurance which seems to be having similiar features as SBI eShield and looks more attractive to me.

  • santosh kumar gupta

    Sir,

        I am interest to buy  one line insurance product. I am 37 year old and annual income is 3 lakh. So please suggest me the one company which is best for me for the time period of 25 years. Whether is it necessary for to take accidental cover also for paying some extra premium.

    you are also requested to suggest me which five  company is best and lower premium also.

    • Take HDFC click 2 protect of ICICI pru term insurance plan or SBI term insurance

    • ICICI Prudential Life Insurance

      Dear Mr. Gupta,

      As suggested by Mr. Suresh, you may go for ICICI Pru iProtect.

      You may consider our online term plan​​ ICICI Pru iProtect (Link: bit.ly/1qL5Ke5). Here are few points for your consideration while buying a term plan:

      1. ICICI Pru iProtect allows you to get a life cover at extremely affordable premiums

      2. ICICI Prudential Life Insurance has one of the best claims settlement ratio in the industry at 96.29%*.

      3. Plus we are also one of the fastest in claim settlement and clear more than 95%* claims within a month.
      * As per IRDA’s Annual Report for FY12-13.

      Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

      Regards,
      http://www.iciciprulife.com

  • Vijay

    Hi suresh,

    1. I have taken 1.5 lac Jeevan Anand for my spouse last year. now premium of 8K is dueShall I continue with it or invest the same money in MF please suggest.

    2. Also, i have Term plan of 50 lac in Bharti AXA(Premium-4500). I am planning to take 60lacs Term plan from LIC(11k). Shall I discontinue it and take from LIC. Or SHall I take 50lac form AXA and 25 lacs form LIC please suggest. Thanks

  • PRANAV

    HELLO.

    I'M INTERESTED TERM PLAN AGED 58 YEARS ANY INSURANCE COMPNY PROVIDE TERM INSURANCE PLEASE TELL ME FOR TERM PLAN.

  • Dev

    Hi Suresh
    I am planning to take term insurance online for 1 crore from lic, Icici, HDFC and SBI each 25 lakh sum assured. I am 30 yes old non smoker. Is it better to go with four diff insurance

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