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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SBI Life Smart Shield Term Insurance Plan
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Will the nominee get Accidental benefit with normal death benefit if the insurer dies in accident (as insurer has opted accidental death benefit rider)??
Presently i am having SBI Smart shield plan of 20 years . I want to increase the tenure to 3 years ( which is the maximum ) in SBI smart shield . Is this possible with the existing plan.
Want to increase the tenure to 30 years
IS this plan cover benefit to nominee in case of normal death?
It is written. Plan is good if you maintain healthy life style. What does it mean? If anybody developes any diesease later like heart trouble ; cancer or diabetis like that whether he will not get cover? pl clarify as I am thinking term plan in one month
Millind, as indicated in the article, maintaining health life style is not smoking.