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
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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.
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.
Thanx a lot sir
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?
Still valid. You can just indicate change in address.
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
Saleem, Please take the term plan first and once it is issued, you can cancel money back policies.
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
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
Hi George, There is no such info that for NRI’s it is not available. Pls approach insurance company customer care. they should clarify
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.
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
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
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
Don’t discontinue unless you take term insurance plan. Yes you can go for addl LIC Rs 25 L term plan
HELLO.
I'M INTERESTED TERM PLAN AGED 58 YEARS ANY INSURANCE COMPNY PROVIDE TERM INSURANCE PLEASE TELL ME FOR TERM PLAN.
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
Hi Dev, I feel 2 or max 3 should be ok
Hi Suresh,
I am 30years old. I have taken 10 lac Jeevan Anand from LIC and planning to purchase Term insurance of 50 lacs from Bharti-AXA (Premium:4486 INR) and 50 lacs from LIC(9963 INR). Please suggest I am right or Shall I go for 1 lac from LIC only or 50 LIC & 50-HDFC?
Also, my wife is housewife so which and how much term insurance should I take for her as per rules.
Thanks.
Hi Kishore, Consider taking SBI Smart shield term insurance or ICICI Term insurance plan or HDFC click2 protect term insurance plan. Recently LIC has introduced LIC online term insurance plan which you can consider. Regd your wife, I generally indicate that one should consider life insurance for earning member as loss of such person would have financial impact on the family life. If you still want to take, you can consider taking 10-12 years of your family annual income.
Suresh,
Noob question, In term plans, do they cover all types of deaths like accidet, criminal,medical et
Hi Shiv Anand, Yes they cover everything except for suicide. Even this some of the plans are covering after 1 year period. You should check that.
Hai,
Very nice information.
1. I have a doubt, Can NRI opt for Term insurance plans? Any point to be noted?
2. Any Point to be noted when opting for riders?
Thanks in advance
Hi Ganesh, It depends on insurance companies. Some of them are allowing term plans for NRI’s too. Regd riders, you should consider critical illness riders if possible
Dear suresh, Earlier you have written that irda prohibited the riders in term plans.But sbi smartshield and kotak insurance are
still giving riders.Is it allowed?
With regards
Dr.p.sudhakar
Hi Dr. Sudhakar, For online insurance policies, there are no riders. However for offline policies, the riders are still allowed
Dear Suresh,
I thank you for providing comprehensive clarity on TOP 10 Mutual Funds 2014.
I like to know to add to that how about ‘HDFC Life Pro Growth Plus Plan’?
Will be glad if you can provide some clarity on that in terms of investment & wealth creation. Please also provide your inputs on Income Fund in this plan.
Thanks.
Regards,
Anand Sagar
Hi Anand, This is ULIP plan. You should stay away from such ULIP’s. Please consider term plan and balance invest in mutual funds or post office RD schemes.