SBI Life Term Insurance
Incorporated in 2001, SBI Life Insurance is currently serving millions of customers through its diverse range of products. They have made it their mission to make insurance accessible to all. And to achieve this incredible feat, they have 947 offices throughout the country.
State Bank Of India currently offers many insurance products like term, retirement, savings, unit-linked, investments, and many more. These comprehensive life insurance policies are available at nominal cost and are designed in such a way that it fulfills every individual/family’s requirement.
SBI Life Term Insurance - At A Glance
|Company Name||SBI Life Insurance|
|Year of Establishment||2000|
|Parent Company||Government Of India|
|CEO||Mahesh Kumar Sharma|
|Number of Agents||157,792|
|Number of Branch Offices||29,000+|
|Total Claim Settlement Ratio (2019-2020)||98.88%|
What Exactly Is Term Insurance?
Term Insurance is a type of life insurance that is covered for a specified term and in case of death, guarantees payment to the beneficiary. In simple words, it’s life insurance for a specific duration. And once the term expires, the holder/owner can renew it for another term or can terminate the policy.
And when you do buy term life insurance, the company, in this case, SBI, will determine the premiums based on the payout amount, your health, gender, and age. If the policyholder dies during the term, the State Bank Of India will pay the insured amount to the beneficiaries. And oh, the said amount is not taxable in most cases. Beneficiaries can use the insured amount to pay off any debt, healthcare bills, funeral costs, etc.
But if the policy expires before the policyholder’s death then there won’t be any payout. Usually, these policies have no savings component other than insuring one’s life. And that’s why the premiums are affordable as it only provides benefits post-death.
What Are The Benefits & Features Of SBI Term Insurance?
- Financial Protection – It essentially keeps the family protected after the unforeseeable death of the policyholder. It gives peace of mind to the family as the policy helps the family to be financially secured in case of the holder’s demise.
- Different Plan Options – According to individual needs and requirements, SBI Life Term Insurance provides different plan options.
- Flexible Premiums – Every plan is made keeping in mind the consumer’s budget and that’s why SBI Term Insurance offers plans that will fit according to the buyer’s requirement. The company wants to provide life cover to everyone at an extremely nominal cost. The policyholder has the flexibility to pay these premiums on a monthly/quarterly/yearly basis.
- Add Ons: The best part about SBI life insurance is that one can choose ‘Add-ons’ that are available with basic plans.
- High Claim Settlement – SBI Life Insurance is known for its high claim settlement ratio. In FY 19-20, the insurance company had a ratio of 98.88%. It simply means that you can trust the insurance provider to process and approve your claims with minimum problems.
- Customer-Centric Service – SBI Life Term Insurance has a customer-first approach and hence ensures customer satisfaction in whatever they do. SBI Life Insurance’s philosophy is based on five intrinsic values such as trustworthiness, innovation, excellence, dynamism, and ambition. And that’s why the insurance provider has an amazing customer service team.
- Tax Benefits – If you are paying premiums for life insurance whether it’s monthly/yearly, you can claim a deduction under Section 80C and 10(10D) while filing your taxes.
What Are The Different Types Of SBI Term Insurance?
- SBI Life eShield
- SBI Life Saral Jeevan Bima
- SBI Life Poorna Suraksha
- SBI Life Smart Shield
- SBI Life Grameen Bima
|Plans||Entry age||Maximum age at maturity||Policy term||Sum assured||Premium payment||Premium payment frequency|
|SBI Life e-Shield||18 years to 65 years|
Whole Life cover: 100 years last birthday
|5 to 30 years|
Minimum: Rs. 50 lacs
Maximum: No limit
|Regular pay||Monthly, Quarterly, Half-yearly, Annually & Single|
|SBI Life Saral Jeevan Bima||18 years to 65 years||70 years||5 to 40 years|
Minimum: Rs.5 lacs
Maximum:Rs. 50 lacs
Limited Pay – 5, 10, 12
Regular Pay, & Single
|Monthly, Half-yearly, Annually & Single|
|SBI Life Poorna Suraksha|
Minimum: 18 years
Maximum: 65 years
|28 years to 75 years||10 to 30 years|
Minimum: Rs.20 lacs
Maximum: Rs. 2.5 crore
|SBI Life Smart Shield|
Minimum: 18 years
Maximum: 60 years
Minimum: 5 years
Maximum: 80 years less age at entry
Minimum: Rs.25 lacs
Maximum: No limit
|Single and regular pay||Monthly, Quarterly, Half-yearly, Annually & Single|
|SBI Life Grameen Bima|
Minimum: 18 years
Maximum: 50 years
|50 years||5 years|
Minimum: Rs.10 thousand
Maximum: Rs. 50 thousand
Features Of SBI Life Term Insurance Plans
1. SBI Life e-Shield Plan
- This is a basic non-linking, non-participating term plan.
- Lower premium rates for non-smokers.
- This insurance plan has 3 options – Level Cover, Increasing Cover, and Level Cover with Future-Proofing Benefit.
- It also includes terminal illness benefits.
- You can choose an additional two Rider coverage options.
- The SBI Life e-Shield plan has options that will meet your other requirements – Death Benefit Payment, Better Half Benefit.
- In case the policyholder gets diagnosed with terminal illness while the policy is active, then on the date of the diagnosis, the holder will get a sum assured on death (maximum is Rs. 2,00,00,000.
2. SBI Life Saral Jeevan Bima
- SBI Life Saral Jeevan Bima plan is basically a standard insurance plan at an affordable rate.
- Flexible payment options. You can choose to pay the premium once or regularly or for a limited period.
- If the policyholder dies due to an accident then the beneficiary will receive –
- For Regular & Limited Premium payment policies, it is the Highest of
A. 10 times the Annualized premium
B. 105% of all premiums paid till the date of death
C. Absolute amount assured+ to be paid on death
- For Single policies, it is Higher of
A. 125% of Single premium
B. Absolute amount assured+ to be paid on death
- If the death is due to other reasons then the beneficiary will receive 100% of all premiums paid excluding taxes.
3. SBI Life Poorna Suraksha Plan
- SBI Life Poorna Suraksha plan provides quite comprehensive coverage against death to the policyholder.
- This insurance plan covers Critical Illness and if the need arises, will automatically adjust the amount that is assured between critical illness and life every year.
- The premium remains constant throughout the term of the policy.
- Covers 36 critical illnesses and in case the policyholder is diagnosed with one, then all future premiums are waived off.
4. SBI Life Smart Shield Plan
- SBI Life Smart Shield plan has two options – Level Term Assurance & Increasing Term Assurance and you can choose any of them according to your financial needs.
- You can get a comprehensive cover that also offers two rider options at a reasonable rate. (Accidental Death Benefit Rider, Accidental Total & Permanent Disability Benefit Rider).
5. SBI Life Grameen Bima
- You can get a life cover with a single payment
- No medical checkup is required for this insurance
- Simple procedure
- Secures your family financial stability at a very nominal rate.
Exclusions Under SBI Term Insurance Plans
Suicide Exclusion: There Are Some Exclusions Of SBI Term Insurance That You Need To Know Suicide Exclusion – If the policyholder commits suicide within a year of the policy date/reinstatement date then the nominee will receive up to 80% of the premiums paid. However, post that, the policy will be considered void and the beneficiary won’t be able to claim anything else.
Exclusion for Accidental Death Benefit: If the policyholder dies due to either of these events then the nominee won’t be entitled to any claims –
- Drug Abuse
- Self-inflicted injury
- Criminal Acts
- War or Civil Commotion
- Dangerous sports and other activities
How Can You Buy an SBI Term Insurance Plan?
Well, you can simply buy the plan online.
- Visit the SBI Life Insurance website.
- Select the plan you are interested in and fill up the form.
- You can also select the additional options/Riders to calculate the Premium
- Select the payment frequency
- Fill in the details according to your government ID
- Select the payment mode and pay
- Just in case you are not happy with the premium amount or have any doubts, you can request a call with the customer care service executive.
What Are The Documents Required?
- For Age proof – Aadhar card/Passport/Rental Agreement/Birth Certificate
- For Identity proof – PAN card/Aadhar card/Passport/license
- Latest Medical certificate
- And income proof – salary slips/income tax returns.
How To Renew Your SBI Term Insurance Plan?
You can do it at home! Visit the SBI Life Insurance website, click the services category. Under that, click Online Premium Payment, fill out the information. Someone from the customer care service will get in touch with you to help you with the renewal.
Claim Settlement Of SBI Life Term Insurance
SBI Life Term insurance plans have an easy claim settlement process. You can settle a claim both online and offline.
Here’s How You Can Claim SBI Term Insurance Online
Step 1: Claim Intimation
Well, the first step is to intimate your claim. Go to the maturity section of the SBI Life Insurance website and submit your claim form along with all the required documents. Or you can also intimate them via email. Write to them at firstname.lastname@example.org and let them know!
Step 2: Document Submission
After intimating the claim, you can submit the mandated documents at email@example.com. Or you can visit your nearest SBI Life branch and submit the required documents.
Step 3: Decision and Settlement
Your claim will be assessed and the documents will be checked to make a decision. Once the amount is decided, the amount will be released according to the policy.
You Can Claim SBI Term Insurance OFFLINE Too!
It’s pretty simple. Call their customer care helpline (1800 267 9090) and lodge a claim or you can go to your nearest SBI Life Insurance branch.
Documents Required To Make An Insurance Claim?
For Death Claim:
- Claim Form
- Original Policy Document
- Original/Attested Death Certificate
- Beneficiary’s current address proof
- Nominee’s photo ID proof
- Claimant’s bank statement and printed Bank account number
Other Additional Documents:
- Medical certificate
- Hospital treatment certificate
- Employer’s certificate (for salaried individuals)
- Copy of Panchnama Report/FIR/Post Mortem Report
- Copy of Inquest Report/Police Final Report.
Frequently Asked Questions
As smoking is hazardous, it increases the risk for the person developing throat or lung cancer. And that’s why smokers have to pay a higher premium.
You have to fill and submit a surrender form along with the required documents to the nearest SBI Life Insurance branch. Documents include:
- Recent photograph of the policyholder
- Original Policy document
- Original photo ID and address proof and one self-attested copy.
- Bank Details (Account statement that shows recent transactions or original bank passbook and one self-attested copy.
- Cancelled Cheque
SBI offers a grace period which is usually 15 days for a monthly payment and 30 days for other payment options. If the payment isn’t done within that time period, your policy will lapse. You can still revive the lapsed policy within a certain time frame. Do refer to your policy documents for more information.
Yes. It helps in understanding your current health status which is a key factor in the evaluation process. Based on your medical history and current health status, your insurance policy can be either accepted at the normal rates or accepted with an extra premium or declined.
Yes! You can add them anytime during your policy term.
Yes, although it is subject to terms and conditions. Please refer to your policy documents for more information.