An Overview Of SBI Term Insurance Plan

SBI Term Insurance Plans are offered by the SBI Life Insurance Company which is a collaboration of State Bank of India with 74% stake and 26% holding of BNP Paribas Cardif. This is one of the popular and much trusted insurance companies in India. The wide range of comprehensive products offered by SBI Life Insurance company work as protection plans in the form of term insurance. Each of the products are tailored to offer unique features and benefits that will cater the customised requirement of the different type of customers. In this article, we will be throwing light on the most demanded term insurance plan i.e. SBI Life-eShield Term Insurance Plan.

SBI Life-eShield term insurance plans are the term plans that you can buy online without any hassle and gives the financial protection that you and your family deserves.

The online eShield plans come with the diverse benefits. These are:

  • Simple to apply – The online application is seamless and easy. Online Application form or Proposal form has to be filled and the self-attested KYC documents to be uploaded
  • Flexibility of options – Four variants are available to choose from the best suited one. These are level cover plan, level cover with accidental death benefit plan, increasing cover plan and increasing cover with accidental death benefit plan.
  • Provide Security – Protects the family financially in case of unforeseen demise of the policy holder
  • Affordable Plans – With moderate and reasonable premium amounts

Features of these Term Plans

  • These plans are obtainable through online application process without any bonus facility
  • Four Options are available to select from
  • Discounts are given on premium for non-smokers as well as female lives

SBI Term Insurance Plan – eShield Plan Option

eShield offers four different options to select from. These are:

  • Level Cover Plan – The Basic sum assured, which was selected at the onset of the policy will be the Effective sum assured for this plan
  • Level Cover with Accidental Death Benefit Plan – This has an additional ‘Accidental Death Benefit’ Rider which is in-built. Like the Level Cover Plan, the effective sum assured is same as the basic sum assured at the onset of the policy. However, in case of accidental death, the pay-out will be either Rs.50 lakh or the basic sum assured, whichever is lower.
  • Increasing Cover Plan – The effective sum assured for this plan will be the basic sum assured at the onset of the plan and this will be increased by 10% simple rate at every 5th year of the policy and there is no additional premium required
  • Increasing Cover with Accidental Death Benefit Plan – This plan is similar to the increasing Cover Plan with the additional rider of Accidental Death benefits. The benefits that will be paid due to accidental death is either Rs.50 lakh  or equal to the basic sum assured, whichever is lower.

All these plans are purely term plans and there is no maturity or survival benefit attached to these.

Eligibility Criteria for the eShield SBI Term Insurance Plans

  • Entry Age – Minimum age is 18 years. The maximum age for Level Cover and Level Cover with Accidental Benefits is 65 years while for Increasing Cover and Increasing Cover with Accidental Benefits is 60 years
  • Maximum Age at Maturity – 70 Years
  • Basic Sum Assured – Minimum assured is ₹20 Lakhs and could be increased in multiples of Rs.1 lakh subsequently. There is no upper limit specified and it is subject to underwriting decision
  • Policy Terms – For Level Cover category it is minimum of 5 years while for Increasing Cover category, it is minimum of 10 years. The maximum policy term could be for 30 years.
  • Premium Details — To be paid yearly, with a minimum annual premium ofRs.3500. There is no upper limit of premium and the premium payment term is same as the policy term

Exclusions from the Plans are:

  • In case of suicide within 12 months of the new policy inception or revival of the policy, 80% of the premium amount will be paid back to the nominee
  • For the plans with Accidental death benefits, any death due to accidental infection, self-inflicted injury, drug abuse, involvement in criminal activity, war, aviation will not be entitled for the rider benefits

Apart from the above mentioned benefits and features, there are several advantages of these SBI Term Insurance Plan eShield Plans. In case of death, the effective sum assured is given to the nominee promptly. Also if the customer buys the plans with Accidental benefit riders, then in case of any eventuality during the policy term, Accidental death benefits will be provided along with the effective sum assured. Accidental death benefits are equal to the lesser of:  50 lakh or the effective sum assured. Moreover, the premium payment will enjoy the tax benefit or exemption as per the Income Tax laws of India.

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