SBI Life Smart Shield Term Insurance Review
Plan Name: Smart Shield
Insurer: SBI Life Insurance
Category: Term Life Insurance Plan
Objective: Financial protection of family
SBI Life Smart Shield is a pure term life insurance plan which provides high cover at relatively low cost. Smart Shield term life insurance plan provides financial protection to your loved one if something happens to you. The Sum Assured will be paid to the nominee when policyholder passes away. SBI Life Smart Shield is term life insurance plan and offers no maturity benefits. However there are excellent rider options at extra premium offered by Smart Shield term life insurance plan.
Who can buy Smart Shield?
SBI Life Smart Shield term life insurance plan can be bought by anyone who is at least 18 years old and not more than 65 years. The policy term varies from 5 years to 30 years. The maximum age of person at policy maturity should not exceed 70 years.
How Much Cover?
The minimum Sum Assured in Smart Shield term plan is Rs 25 lacs and the maximum cover is unlimited though it is subject to underwriting.
Confused how much cover you need?
Rule of Thumb: The typical cover should be ten times your annual income.
18 years-65 years
Maximum – 70 years
Rs 2,500,000-unlimited( subject to underwriting)
Premium Paying Term
Policy Term, Single Premium
Yearly, Half yearly, Quarterly, Monthly
What do I get?
Death Benefit: A customer is provided with multiple options during inception of policy among these:
Level Term Assurance
The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter.
Increasing Term Assurance
The Sum Assured is increased by 5% per annum. The premium will also be increased a bit. On demise of life insured, the increased Sum Assured will be paid.
Decreasing Term Assurance (Loan Protection)
This option can be taken if you have taken any loan. The Sum Assured will be equivalent to the outstanding loan amount. As you keep paying the loan amount, the Sum Assured will keep decreasing as well.
Decreasing Term Assurance (Family Income Protection)
On demise of life insured, monthly payout will be paid to the family members till the end of the policy term. The monthly amount will be equal to Sum Assured divided by policy term (in months).
Riders are very useful additional benefits which could be beneficial to the policyholder. They are low priced but their utility is huge. The only thing is they can be added only at the commencement of the policy. Riders available with SBI Life Smart Shield plan are:
Accidental Death Benefit
Accidental Total & Permanent Disability Benefit Rider
Accelerated Critical Illness Cover
Sum Assured Rebate
A discount on premium will be provided if the Sum Assured is equal or more than INR 50 lacs.
The premium paid (not more than 1 lac) can be used for availing tax benefits as per Income Tax Act, 1961.
Surender, 32 years old takes SBI Life Smart Shield term life insurance plan which provides cover of 40 lacs and has policy term of 25 years. He chooses his son (minor) as beneficiary and wife as appointee.
Consider these Scenarios:
Scenario1: Surender dies in the 1st policy year- Surender son will get 40 lacs when he reaches 18 years. This case is relevant throughout the policy term.
Scenario 2: Policy is in grace period and Surender dies, Sum Assured minus renewal premium will be paid.
Scenario 3: Policy lapses on the 22nd year, Surender dies, nothing will be paid. The lapsed policy can be revived within 30 days from date of renewal.
How to buy: Contact Policybazaar and we will assist you in fast and simplified buying process for buying Smart Shield.
Free Look Period: SBI Life Smart Shield policy can be returned within 15 days of receiving the policy contract. The premium will be paid back minus some charges like medical examination, stamp duty.
Grace period: SBI Smart Shield premium can be paid within 30 days from the date of renewal. In case of monthly mode payments, grace period is 15 days. However in case of death during grace period; renewal premium will be deducted from Sum Assured payable. After the grace period, if the renewal premium is not paid the policy will cease to exist.
Reinstatement: Smart Shield policy can be revived within 3 years from the premium due date. Also beyond 6 months, proof of good health will be required. All the unpaid premiums plus relevant interest have to be paid to revive the policy.
Maturity: There are no maturity benefits since Smart Shield a pure term plan.
Payment Method: The payment options for Smart Shield are cash, cheque subject to clearance, credit/debit card.
Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.
Death Claim: The nominee can apply for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.
LIC Amulya Jeevan- I, Bharti AXA Elite Secure, Met Suraksha Plus, Kotak Preferred term plan,Max New York Life Platinum Protect, Tata AIG Life Raksha, Aviva LifeShield Plus, HDFC Term Assurance, Met Protect Term Plan.
Policybazaar take on SBI Life Smart Shield
SBI Life Smart Shield allows as much as high cover as you want. There are 4 options which you can choose as per your requirement. You also can add riders with the base plan.
Compare with other term plans now!