SBI Saral Shield

SBI Life is one of the most trusted brands in India, primarily because it is backed by India’s one of the largest banking institutions, State Bank of India. SBI Life Saral Shield Plan is a simple plan which has additional benefits in the form of riders and has 3 variants of the same, namely Level, Decreasing for Loan Protection and Decreasing for Family Income Protection plan.

• There are 3 versions of the term plan- Level Term, Decreasing Term for Loan Protection and for Family Income Protection.
• There is a special discount for women and large sum assured.
• Additional rider benefits of Accidental Death Benefit and Total and Permanent Disability Benefit available.

Death Benefit – In case of death of the policy holder, the nominee gets the sum assured according to the plan option selected. In Level Term Plan, the Sum Assured is fixed. But in Decreasing Term plans, the sum assured decreases at a pre-defined schedule.

Maturity Benefit – There are no maturity benefits under this plan.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 20 lakhs and Policy Term = 25 years under Level Term Plan option

1.     There are 3 variants of this Policy

a.     Level Term Plan - This is a regular option where the sum assured is constant throughout the term of the policy and is does not vary or change even at the request of the policyholder.

b.     Decreasing Term Plan for Loan Protection - This option is available only if the policyholder has a loan taken under his name. This option protects the loan to such an extent that if something happens to the policyholder during the tenure of the loan and he dies, then the burden of the loan is taken up by the company and is paid off. The burden of the loan does not fall on the family. Since the loan outstanding keeps decreasing each year, the sum assured for loan protection also reduces subsequently. At a highly competitive price, this option is designed to help the family repay the outstanding loan and yet keep enjoying the assets.

c.     Decreasing Term Plan for Family Income Protection - This option is primarily if the life insured is the sole bread earner for the family and has quite a few numbers of dependents, then he would like to secure their future for a stable and regular income in case of any emergency where he dies.

Under Family Income Protection plan option, the Sum Assured chosen will be divided by total term (in months) and the resultant amount will be paid to the family for the remaining Policy Months after death as a monthly income. Moreover, your Nominee can ask for the discounted value of the remaining monthly payouts.

2.     Riders – There are 2 riders available in this plan.

a.     Accidental Death Benefit Rider

b.     Total and Permanent Disability Rider

The riders are available ONLY with Level Term Plan and not available with Decreasing Term Plans. The eligibility conditions for these riders are:

Entry Age- 18-65 years

Maturity Age- 70 years

Sum Assured- Rs 25,000-Rs 24, 00,000

Term- Equal to base policy term

You stop paying the premium - If the policy holder stops paying the premium, then the policy would lapse after the grace period ends and all benefits stop. You can however re-instate the policy within 3 years of lapsing by paying up all due premiums with interest.

You want to surrender the policy – Surrender Benefits are available only to Single Premium Policies from second year onwards.

In Level Term Assurance, Surrender Value=Single Premium (exclusive of service tax) x 75% x Outstanding Term to Maturity / Total Term

In Decreasing Term Assurance, Surrender Value= Single Premium (exclusive of service tax) x 75% x {Outstanding Term to Maturity / Total Term} x {Effective Sum Assured at time of Surrender / Initial Sum Assured}

You want a loan against your policy – There is no loan facility under this policy.

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