SBI Term Life Insurance Review

SBI Term Life Insurance Review

SBI Life – eShield Next

The SBI Life eShield Next is a new era online term plan. It offers whole life coverage for up to 100 years as well as various benefits. This term plan has three variants: level coverage, increasing coverage, and level coverage with future guarantee.

Main characteristics:

  • Ability to choose from three plan options:
    1. Level Coverage Advantage: In this plan, the absolute amount of insured amount is the same or in level throughout the life of the policy.
    2. Increase in coverage: Here, the absolute sum insured is increased by 10% of the basic sum insured at the end of every fifth insurance year. This increase in amount is subject to a maximum of 100% of the basic insured capital. This increase in coverage is limited to age 71.
    3. Level coverage with the advantage of sustainability: This plan gives the insured life the choice to increase the absolute sum insured amount by reaching specific life milestones during the term of the policy. As with marriage, the insured life has the option to increase the sum insured amount by 50% of the basic sum insured, up to a maximum of INR 50 lakh. Similarly, an increase of 25% of the basic insured amount is granted at the birth of the first and second child.
  • Ability to choose between two benefits such as death benefit payment method or better half benefit option. The death benefit can be paid as a lump sum, monthly installments or a combination of both. Whereas, the Better Half benefit, provides financial protection in the absence of assured life to their spouse. The plan coverage would be the level coverage that will be paid in a lump sum regardless of the plan option chosen by the insured.
  • Terminal Illness Benefit is integrated into this scheme. If the life insured is diagnosed with one of the terminal illnesses, before age 80, they would receive a benefit equal to the sum insured at death up to the date of diagnosis, subject to a maximum of INR 2 crore.
  • Option to pay the premium amount either once, for a limited period or for the entire duration of the policy (limited, regular or single payment option).
  • Provides life insurance coverage to age 100 for whole life or age 85 if other than whole life.
  • Optional additional benefit:
    1. Accidental Death Benefit Rider.
    2. Total and Permanent Accidental Disability Rider.
  • Advantages:
    1. Death Benefit: For Regular and Limited policies, the benefit is the greater of:
  • 10 times the annualized premium, or
  • Absolute Sum Insured payable on death, or
  • 105% of the total premiums received until death.
    2. And, for single premium policies, the benefit is the highest of the following:
  • 1.25 times the single premium, or
  • Absolute sum insured to be paid on death.

Who is eligible to purchase the SBI Life – eShield Next policy?

Minimum entry age:

  • For life: 45 years
  • Other than whole life coverage: 18 years

Maximum entry age:

  • For the single premium: 65 years
  • For the regular premium: age 60
  • For the better half of the benefits: 55 years

Maximum age of maturity:

  • For the single and regular premium: 85 years
  • For life: 100 years

SBI Life – Saral Jeevan Bima

The SBI Life – Saral Jeevan Bima is one of the standard and low cost term plans. Other than the death benefit, the policy does not provide any survivorship, maturity or rider benefits.

Main characteristics:

  • Possibility to pay the premium once, regularly or for a limited period (five or ten years).
  • The basic sum insured of the plan is a minimum of INR 5 lakh to INR 25 lakh.
  • Advantages:
    1. Death benefit: This benefit is paid on the death of the insured person during the term of the policy to the applicant, who receives the sum insured on death, in a lump sum. For regular and limited premium policies, the benefit is the highest of the following:
  • Ten times the annualized premium
  • 105% of all premiums paid on date of death
  • Absolute amount insured to be paid on death

For single premium policies, it is higher by:

  • 125% of the single premium
  • Absolute amount insured to be paid on death

And, for single premium policies, the profit is the highest among the following:

  • 1.25 times the single premium, or
  • Absolute sum insured to be paid on death.

Who is eligible to buy SBI Life – Saral Jeevan Bima

  • Minimum entry age: 18 years old
  • Maximum entry age: 65 years old
  • Policy term: 5 to 40 years

SBI Life Poorna Suraksha

The SBI Life Poorna Suraksha is a standard term plan that includes built-in critical illness riders and hence it offers comprehensive coverage in addition to health coverage.

Main characteristics:

  • The sum insured varies between a minimum of INR 20 lakh and a maximum of INR 25 crore.
  • Combination of life cover and critical illness cover. It should be noted that critical illness cover increases with an equal decrease in life cover, as part of the life stage rebalancing benefit.
  • Under the critical illness rider, this policy covers 36 listed illnesses such as cancer, stroke, among others.
  • Upon diagnosis of critical illness, all future premiums will be forfeited for the remainder of the policy term.
  • There is a fixed premium amount throughout the term of the policy.
  • Advantages:
    1. Death benefit: This benefit is paid on the death of the insured person during the term of the policy to the applicant, who receives the sum insured on death, in a lump sum greater than:
  • Ten times the annualized premium
  • 105% of all premiums paid on date of death
  • Absolute amount insured to be paid on death
    2. Critical Illness Benefit: This benefit is paid only once and will never be paid again. The Critical Benefit Sum Insured is the sum insured paid to the insured, if diagnosed with one of the 34 critical illnesses listed. The initial waiting period for this benefit is 90 days and nothing will be paid if the diagnosis occurs within 90 days of the effective date of the policy.

Who can buy SBI Life Poorna Suraksha?

  • Minimum and maximum entry age: 18 and 65 years old.
  • Minimum and maximum age of maturity: 28 years and 75 years.
  • The insurance periods are 10, 15, 20, 25 and 30 years.

SBI Life – Smart Shield

The SBI Life-Smart Shield is a kind of pure term plan, which aims to provide full life coverage with the option of increasing coverage. Increasing term insurance ensures that the amount of coverage increases with age and responsibilities. This plan also offers two helpful riders.

Main characteristics:

  • Offers two options such as level term insurance and increasing term insurance.
  • Add covers:
    1. Accidental Death Benefit Rider
    2. Total and permanent disability rider by accident.
  • Benefit from an attractive discount on a huge sum insured.
  • Reduced premium for non-smokers.
  • No maturity benefit is offered in the policy.
  • The basic sum insured of this plan is INR 25 lakh.
  • The premium can be paid once or the regular payment method can be chosen.
  • Advantages:
    1. Death benefit: This benefit is paid on the death of the insured person during the term of the policy to the applicant, who receives the sum insured on death, depending on the plan option chosen:
  • In level term insurance, the sum assured at the date of death is equal to the sum assured chosen.
  • In insurance with increasing duration, the insured capital on the date of death will be the insured capital increased by 5% per year.

Who is eligible to purchase SBI Life – Smart Shield?

  • Minimum and maximum entry age: 18 and 60 years old.
  • Maximum age of maturity: 80 years.
  • Policy term: 5 years to 80 years.

SBI Life – Arogya Shield

The SBI Life- Arogya shield is a standard term plan that accompanies health coverage. The guaranteed sum of life cover is up to INR 25 lakh.

Main characteristics:

  • Provides dual health and life insurance protection.
  • As health coverage, it covers childcare and pre- and post-hospitalization costs.
  • Advantages:
    1. Death benefit: This benefit is paid on the death of the insured person during the term of the policy to the applicant, who receives the sum insured on death, in a lump sum, whichever is greater:
  • 10 times the annualized premium
  • 105% of total premiums paid.
  • Absolute insured amount to be paid on death.

Who is eligible to buy Arogya Shield?

  • Minimum and maximum entry age: 18 and 65 years old.
  • Minimum and maximum duration of the policy: 5 years and 40 years

SBI Life – Grameen Bima

The SBI Life – Grameen Bima is a standard term plan and a pure risk premium product. This plan has lifetime coverage which comes with a single premium payment. There is no prior health exam required to purchase this plan.

Main characteristics:

  • The sum insured ranges from INR 10,000 to a maximum of INR 50,000.
  • The term of the policy is five years.
  • The plan provides a death benefit, where the candidate receives the sum assured upon death as a lump sum payment. The capital insured upon death would be greater than the basic insured capital, i.e. 1.25 times the single premium.
  • The surrender benefit is not payable until after the first year of life coverage. The amount to be paid is:
    Single premium paid (excluding taxes) * 50% * unexpired duration of the policy / total duration of the policy
  • No maturity benefit is payable under this policy.

Who is eligible to buy SBI Life- Grameen Bima?

  • Minimum and maximum age: 18 and 50 years old.
  • Minimum and maximum duration of the policy: 5 years and 40 years

SBI Life – Sampoorn Cancer Suraksha

The SBI Life- Sampoorn Cancer Suraksha is specially designed to provide protection against life-threatening diseases such as cancer. It offers the option of paying up to 40% of the sum insured as a monthly payment and the rest as a lump sum payment of the sum insured at the time of cancer diagnosis.

Main characteristics:

  • Staged lump sum benefit and monthly income benefit depending on the chosen benefit structure.
  • Ability to choose from three benefit structures designed according to cancer severity.
  • No need for prior health checks.
  • Possibility of increasing the coverage of the insured capital.
  • Built-in premium waiver option.
  • Premiums are fixed for the first five years of the policy.
  • Possibility of receiving a second medical opinion from any doctor or practitioner in the network.

SBI Life – Corona Rakshak Policy

The SBI Life-Corona Rakshak policy is designed to provide protection against Covid-19. This plan provides for the lump sum payment of 100% of the sum insured, only in the event of hospitalization for a minimum of 72 hours on diagnosis of Covid-19. However, this benefit can only be used once during the life of the policy.

Main characteristics:

  • The policy is issued without any hassle of medical tests.
  • The duration of the policy is 3.5 months, 6.5 months and 9.5 months.
  • The minimum award amount is INR 156.50 and the maximum is INR 2,230.

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