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

  • ANAND V GODBOLE

    Sir, first of all I salute to u for sharing knowledge on financial in 360 degrees. i think u are nothing but equal to social worker. Your sharing of knowledge help people like us who son,t know ABCD of finacial planning. I thank all the efforts u take to share the knowledge on your BLOG.

    i have taken loan from LIC housing finance of Rs: 1200000/= for 15 years and I want insure for the same. should I take Home loan insurance or pure term insurance and which insurance company. similarly prepayment of loan is advisable or not.

    • Anand, Thanks for your words. Insurance for home loan reduces your risk coverage as you go making payment of your EMI’s. On other hand term plan would continue the same risk coverage to the end of tenure. If you are taking only for home loan purpose, just go for home loan insurance.

  • TP

    Hi Sir,
    I have a question.. I currently reside in Bangalore.. If I take SBI Insurance in Bangalore and in future I settle somewhere else, Will the insurance be valid?

  • saleem

    Dear Suresh,
    Yet again an informative article and an eye opener too for me. I am 45 yr.old and have many LIC plus type policies with one money back policy and another one Jeevan anand with 10 lac cover and 80k yearly premiums, but NOT EVEN ONE TERM PLAN POLICY as agents (friends and relatives)approached to give one ploicy atleast.Therefore my question is,should I cancel Jeevan anand or reduce to 5 lac(is it possible?) and then take immediately one of SBI or from LIC itself a term plan.
    Thanks many

  • Ashish

    Dear Sir,

    I am 33 year old. i am an NRI.
    Can you please suggest me a suitable Term plan?
    Thank you,
    Ashish

    • Ashish, You can opt for LIC e-Term online plan (options to NRI’s were supposed to open few months back and I am assuming it is available now), HDFC Click 2 protect term plan or ICICI Term insurance plans are good

  • george

    Sir
    i am 32 years old NRI working in dubai for 6 years. I would like to take term policy SBI smart shield of 50 Lakh for 30 years. can I get the rider of Accelerated Critical Illness Benefit?(i am non smoker) Agent told me the CI rider is not available for NRI’s . is it correct? if yes which company gives CI rider for NRI’s
    thanks
    george

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