SBI Life Smart Shield Plan Review
SBI Life Insurance, which is backed by India’s largest bank State bank of India, is ranked No 1 amongst the private life insurance companies in the new business premium collected. SBI Life Smart Shield Plan is a term insurance policy that offers a high coverage at an affordable premium. It is a pure term plan with no maturity benefits and offers only death benefit.
Key Features of SBI Life Smart Shield Plan
- There are 4 versions of the term plan- level term, increasing term, decreasing term for loan and for family protection
- There is a discount for healthy lifestyle of non-smoking
- Additional rider benefits available
Benefits you get from SBI Life Smart Shield Plan
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, the Sum Assured is fixed. In increasing and decreasing term plans, the sum assured increases or decreases.
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
Eligibility conditions and other restrictions in SBI Life Smart Shield Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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Rs.25,00,000
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No Limit
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Policy Term (in years)
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5
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30
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Premium Payment Term (in years)
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Equal to policy term
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Equal to policy term
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Entry Age of Policyholder (in years)
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18
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65
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Age at Maturity
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-
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70
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Single premium
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Rs 15,000
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No Limit
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Payment modes
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Yearly, Half-yearly, Quarterly, Monthly and Single for Level Term and Increasing Term Plan
Only Single for Decreasing Term Plan
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Sample illustration of premium amount in SBI Life Smart Shield Plan
The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 50 lakhs and Policy Term = 25 years
Additional Features and Benefits of SBI Life Smart Shield Plan
Riders – There are 3 riders available in this plan.
1. Accidental Death Benefit rider-
Entry Age- 18-65 years, Maturity Age- 70 years; Sum Assured- Rs 25,000-Rs 50,00,000
2. Critical Illness rider
Entry Age- 18-60 years, Maturity Age- 65 years;
Covers 13 Critical Illnesses
3. Total and Permanent Disability Rider
Entry Age- 18-65 years, Maturity Age- 70 years; Sum Assured- Rs 25,000-Rs 50,00,000
You stop paying the premium - If the policy holder stops paying the premium, then the policy would lapse after the grace period ends. You can 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
In Level Term Assurance, Surrender Value=Single Premium (exclusive of service tax) x75% x Outstanding Term to Maturity / Total Term
In Decreasing Term Assurance, Surrender Value= Single Premium (exclusive of service tax) x75% x {Outstanding Term to Maturity / Total Term} x{Effective Sum Assured at time of Surrender / Initial Sum Assured}
In Increasing Term Assurance, Surrender Value= Single Premium (exclusive of service tax) x80% x {Outstanding Term to Maturity / Total Term}
You want a loan against your policy – Loan facility is not available under this policy.
Alternate term plans from different insurance companies
iTerm Plan from AEGON Religare
LIC Amulya Jeevan
Bajaj Allianz Term Care
Reliance Term Plan
Other term insurance plans from SBI Life
SBI Life Saral Shield
SBI Life Swadhan
