Knowledge Base Life Insurance Term Plan SBI Life Smart Shield Term Insurance Review
Friday, 11 November 2011 18:16

SBI Life Smart Shield Term Insurance Review

Written by  Yashish Dahiya
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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.

Summarized Table:

Entry Age

18 years-65 years

Maturity Age

Maximum – 70 years

Policy Term

5-30 years

Sum Assured

Rs 2,500,000-unlimited( subject to underwriting)

Premium Paying Term

Policy Term, Single Premium

Premium Frequency

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.

Tax Benefits

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.


What Else?

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.

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!


  • Comment Link zeel Tuesday, 15 November 2011 11:34 posted by zeel

    my parents is cinier citizens kon sa plan muje lena chahiye my mothe dob 13/09/1950 & father dob 18/08/1946 pls guide me my monthly income is 10 thousand rupees pls guide me

  • Comment Link Administrator Tuesday, 15 November 2011 16:00 posted by Administrator

    Hi Zeel
    You should buy term insurance plan. That is beneficial because in case something happens to you, lump sum amount will be given to your family.

  • Comment Link Raju Thursday, 05 January 2012 14:50 posted by Raju

    Hi Admin,

    Please advise which term insurance plan is better SBI Smart Shield or Aviva i life.

  • Comment Link Administrator Thursday, 05 January 2012 17:58 posted by Administrator

    Hi Raju
    SBI Smart Shield has many options like level term assurance (Sum Assured remains same), increasing cover (Sum Assured increases every year), decreasing cover (Sum Assured decreases every year). You can also add riders. The premium can be paid regularly or one time payment.

    Aviva ilife advantage is it is online term plan and hence much cheaper than SBI Smart Shield. The features like flexible Sum Assured, riders is not available with Aviva ilife.

  • Comment Link Mahendar Wednesday, 18 January 2012 03:04 posted by Mahendar

    Hello Admin,

    I am an NRI looking to purchase SBI Smart Shield. I have below questions.

    1) Will my premium increase every year (or periodically) for increasing term assurance?
    2) Does this policy cover accidental death or Do I need to buy accidental death benefit rider along with the policy? If not does the rider will pay extra (choosen) amount in addition to the policy amount in case of accidental death? I bilieve the answer to this question will be similar to any other riders for any policy.
    3) Does this policy pay for death abroad?

    Thank you very much in advance.

  • Comment Link Administrator Thursday, 19 January 2012 16:35 posted by Administrator

    Hi Mahendar
    1. The premium will remain same throughout the term unless there is break in policy.
    2. You need to buy rider. The rider amount will be separate. So in case of accidental death, person will get base Sum Assured of policy and rider Sum Assured.
    3. You need to notify insurer before travelling abroad. Usually term plans cover deaths abroad if the travel situation has been notified to the insurer.

  • Comment Link Chndrakant R Mahangare Friday, 27 January 2012 13:55 posted by Chndrakant R Mahangare

    What is the installment for a Policy Cover of Rs 2500000 & accident Death Rider of Rs 2500000

  • Comment Link Administrator Friday, 27 January 2012 16:35 posted by Administrator

    Hi Chndrakant
    The premium required also depends on age and policy term. If you can kindly provide the same, the premium can be calculated.

  • Comment Link satish Sunday, 05 February 2012 14:03 posted by satish

    Hi Admin.
    1st of all very very thanks for this article. I'm 28 years old and
    would like to take this policy and I'm looking for a sum assurance of 1Cr.I also want to take a accident rider.Could you please provide me the premium and rider addition charges.


  • Comment Link Administrator Monday, 06 February 2012 12:27 posted by Administrator

    Hi Satish
    If you choose SBI Smart Shield level assurance policy term of 30 years with cover of Rs 1 Cr, the basic premium will be Rs 14,687. And if you choose Accidental death rider with policy term of 30 years and Rider Sum Assured of Rs 50 lacs, the rider premium would be Rs 2500.
    The total premium for both inclusive of service tax will be Rs 18,958.

  • Comment Link omesh Monday, 06 February 2012 21:44 posted by omesh

    i wish to purchase policy one time investment , for 20 yrs / Rs.25,00,000/- life insurance as term insurance , please provide brief information about it


  • Comment Link Administrator Tuesday, 07 February 2012 18:43 posted by Administrator

    Hi Omesh
    You can go for offline or online term plans. These days online term plans are getting popular since they are cheaper and are processed fast. If you need any more clarification or want to know about any particular product, do get in touch.

  • Comment Link Babu Friday, 17 February 2012 14:46 posted by Babu

    I'm 39+ years old (DOB: 21.06.1972) male and would like to take SBI Smart Shield policy (Level Term Assurance) and I'm looking for a sum assurance of 25Lacs for 25 years.I also want to take a accident rider. Could you please provide me yearly premium including complete rider (25Lacs) addition charges.
    Also, What is Yearly premium for 50lacs sum assurance and 50lacs rider charges.

  • Comment Link Praveen Tuesday, 26 February 2013 02:45 posted by Praveen

    So if I calculate according to what you suggested (10 times the Annual salary), my insurance comes to 2Cr. My question is - which is the best company when it comes to settlement and what will be the EMI for those ? thank you.

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