SBI Life Smart Income Shield Plan

SBI Life Smart Income Shield Plan is a Term Plan with Death Benefit provided in a staggered form under Monthly Income Scheme and not in a lumpsum.

Death Benefit

Tax Benefit

pre-and-post-hospitalisation-overview icon

Critical Illness Benefit

Compare this plan with other Term Plans

Key Features

Plan

This is a pure Term Plan with Monthly Income provided as Death Benefit and no Maturity Benefit and Bonus facility

2 Plan Options

There are 2 Plan Options available- Basic Plan which provides for basic Death Benefit and Advantage Plan which provides for Death Benefit as well as benefit in event of Critical illness or Total Permanent Disability, whichever occurs first

No Riders

There are no additional riders in this plan but Critical illness and Total Permanent Disability are inbuilt riders under Advantage Plan Option

Options

There are 3 Options for choosing Monthly Benefit and all 3 options are available for both plan options

Income Options

3 Monthly Income Options to choose from are Benefit Option I where Regular Monthly Payout is for 5 years, Benefit Option II where Regular Monthly Payout is for 10 years and Benefit Option III where Regular Monthly Payout is for the remaining Policy Tenure from the event

Immediate Death Benefit

In this plan, 12 times the Monthly Income is paid to the nominee as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen

Limited Payment

There is a facility of Limited Payment for Benefit Option III under both Basic and Advantage Plans

discount

For monthly Regular Income chosen of Rs. 30,000 or more, there is a premium discount of 3%

Benefits

Death Benefit

In case of death of the Life Insured within the Policy Tenure, under both Basic and Advantage Plan Options, the nominee gets 12 X Monthly Income as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen:

Benefit Option I: Regular Monthly Payout for 5 years
Benefit Option II: Regular Monthly Payout for 10 years
Benefit Option III: Regular Monthly Payout for the remaining Policy Tenure from the event

Total Permanent Disability/ Critical Illness Benefit

Under Advantage Plan Option, in case of total permanent disability, critical illness or death of the Life Insured within the Policy Tenure, whichever occurs first, the nominee gets 12 X Monthly Income as Immediate Death Benefit and the plan continues to pay the Regular Monthly Payout as per the option chosen.

Maturity Benefit

Being a pure protection plan, there is no Maturity Benefit 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 and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.

How it works

In this plan, premium needs to be paid either under Regular Premium Option till the end of the Policy Tenure or for a limited period Under Limited Payment Option.

In this plan, there are 2 Plan Options:

Basic Plan which provides for basic Death Benefit
Advantage Plan which provides for Death Benefit as well as benefit in event of Critical illness or Total Permanent Disability, whichever occurs first

In this plan, the policyholder needs to opt for Monthly Income which would be provided to the nominee in case of an unfortunate event of the Life Insured’s death within the Policy Tenure. 12 times the Monthly Income is paid to the nominee as Immediate Death Benefit and then the Regular Monthly Payout works. All the 3 Monthly Income Options are available in both the Plan Options mentioned above.

There are 3 Monthly Income Options to choose from:

Benefit Option I: Regular Monthly Payout for 5 years
Benefit Option II: Regular Monthly Payout for 10 years
Benefit Option III: Regular Monthly Payout for the remaining Policy Tenure from the event

Thus, to sum it up: Under Basic Plan Option, a Monthly Income would be provided for 5, 10 or remaining years to Policy Tenure if the Life Insured dies within the Policy Tenure. And under Advantage Plan Option, a Monthly Income would be provided for 5, 10 or remaining years to Policy Tenure if the Life Insured dies within the Policy Tenure or meets with Critical illness or Total Permanent Disability, whichever occurs first.

Being a pure protection plan, there are no Maturity or Surrender Benefits in this plan.

Eligibility

	Minimum	Maximum
Sum Assured (in Rs.)	12 x Monthly Income benefit amount x Payout term (For Option III, the Payout term is the outstanding term)
Policy Term (in years)	5	25
Premium Payment Term (in years)	3	Equal to Policy Tenure
Entry Age of Life Insured (in years)	18	65 for Basic 60 for Advantage
Age at Maturity (in years)	-	70 for Basic 65 for Advantage
Monthly Income (in Rs.)	10,000	50,000 for Advantage No Limit for Basic
Payment modes	Yearly / Half-yearly / Quarterly / Monthly

FAQs

What happens if policyholder stop paying the premium

If the policy holder stops paying the premium, the policy lapses and all benefits cease. Paid ups are not allowed for Benefit Options I and II. However, Paid ups are allowed for Benefit Option III, provided at least 2 years’ premiums are paid and the policy continues with reduced benefit. The policy can however be revived within 3 policy years from the due date of the first unpaid premium

What happens if policyholder want to surrender the policy

There are no surrender benefits in this plan.

What happens if policyholder want a loan against your policy

Loan facility is not available in this plan.