The State Bank of India (SBI), is a renowned financial institution in the country. There are many financial offerings provided by the organization and these include SBI banking services, SBI credit cards and SBI Life Insurances. There are several other smaller offerings which are usually in association with one or more of the above mentioned. In this article, we will be specifically focusing on the SBI Life Insurance plans also known as protections plans.
The concept behind a protection plan offered by State Bank of India (SBI) is that individuals are looking for financial security in the event of their untimely demise that can help their kin through difficulties and help them financially. In many Indian families, there is usually only a single bread earner and this means great risk to the family in the event that something were to happen to the sole bread earner. Death, disease and disability are all likely causes of concern to any individual on a daily basis. While we choose to ignore the possibility of these and assume that our lives are safe and secure, it is merely an illusion of safety. At any given time, catastrophe could strike and leave us helpless to defend ourselves. Traffic accidents, terrorism, theft and murder as well as life-threatening diseases etc are all possible threats that can affect anyone of us. While there is little we can do to avoid all these events, there are measures we can take to aid our families in the event that something unforeseen is to occur. SBI Life Insurance plans help us prepare for a tragic eventuality and thereby leave a protective financial plan in place for our families to carry on in our absence.
In this article, we will look at the various types of SBI life insurance policy available to date and compare their factors and benefits to give you a list of the best ones to choose from.
Among the various protections plans offered by the State Bank of India, there are the following five-year protection plans that offer complete financial protections for the family of the policyholder in the event of his or her untimely demise. These insurance protection plans offer low-cost options with premium benefits which make them quite affordable and attractive.
SBI Life – eShield
With the uncertainty of life in today’s time, a premium SBI Insurance Plan for the protection of your family members is the eShield. It provides a long-term financial security for family members in the absence of the breadwinner of the house. The plan is advantageous for its affordability in comparison to a no limit insurance cover for the family. Another non-participating, pure term plan that offers the foremost in financial security for your family. The eligibility criteria of the plan are limited to a minimum of eighteen years of age and a maximum of sixty-five years of age. The minimum sum assured for the policyholder is limited to twenty lakhs and there is no upper limit. Premiums are accordingly offered at time interval payment of yearly, semi-annually, quarterly or monthly. The breakdown for the premium begins with a minimum of three thousand five hundred and can go up to any amount necessary. The tenure of the plan is also available for a limited minimum of five years to a maximum of thirty years. There are four main options for policyholders under this SBI Life Insurance plan which include a Level Cover, Level Cover with Accidental Death Benefits, Increasing Cover and an Increasing Cover with Accidental Death Benefits.
The SBI life eShield plan’s accidental death benefit offerings provide additional cover for the nominees in the event of an accidental death during the tenure of the plan. With the Increasing Cover options, the bank provides for inflationary growth on the sum assured by 10 per cent for every five years that the plan is in effect. This provides your family with the added future benefits with the anticipation of increasing cost of living.
The SBI Life - Smart Shield
A traditionally based pure term insurance plan, the SBI Life, Smart Shield, provides an inclusive solution to all the insurance needs of an individual. The advantage of the plan lies in its affordability while providing complete protection to the policyholder’s family in his or her absence. As per the policy guidelines, the policyholder must be a minimum of eighteen years old and a maximum of sixty years old. The insurance plan matures at the age of seventy for the policyholder and the tenure is dependant on when the individual chooses the policy plan and needs to be taken for a minimum period of five years. The maximum period that the plan can be availed for is thirty years. This SBI Insurance plan also offers two methods of payment wherein regular payments can be made until the end of the policy period or a one-time payment can be made the beginning of the policy plan which provides full coverage till the end of the policy period.
Within the umbrella of the Smart Shield SBI Life Insurance plans, there are four different options for policyholders to choose from. These options vary the term assurance and are as follows - Level Term Assurance, Increasing Term Assurance, Decreasing Term Assurance with Loan Protection and Decreasing Term Assurance with Family Income Protections. Depending on the options chosen by the policyholder at the time of commencement of the plan, the benefits may vary.
On a generic level this SBI Life Insurance plan, offers, a minimum sum assured of twenty-five lakhs with no upper limit to the overall sum assured. Premiums vary in the following order - for single premium payments, a sum of fifteen thousand rupees is charged, for regular payments, the sum varies on the time intervals, such as five thousand for yearly payments, two thousand five hundred for semi-annual payments, one thousand, two hundred and fifty for quarterly payments and four hundred and fifty for monthly payments.
The policy is not any kind of investment and therefore does not provide benefits for the policyholder’s survival at the end of the term. Although depending on the additional add-ons to the policy one can avail of benefits under the riders such as accidental benefits, disability benefits or critical illness benefits. Since the policy plan ensures financial security for the family under the conditions subscribed to by the rider benefits, they are only applicable under the fulfilment of the terms and conditions of the policy. In the event of the death of the policyholder, the nominated members of the family will receive the full benefits as per the policy terms and conditions as well as additional benefits under any of the rider additions to the policy plan.
SBI Life - Saral Shield
This protection plan provided by SBI Life Insurance offers the best financial cover for the family at the cost comparison and also offers special plans at reasonable rates for women. Another traditional long-term non-participating insurance policy plan that provides affordability for an individual looking to purchase a family protection plan. The Saral Shield - SBI Life Insurance Plan is a way to ensure that despite your presence in the family affairs your family is able to continue to live their dreams and not have to rethink their ambitions in life. The protection plan, require policyholders to be of a minimum age of eighteen years old and a maximum age of sixty-five years old. The policy will mature when the policyholders reach the age of sixty-five years old in the event of survival. The term period of the policy is decided upon by the policyholder under the terms and conditions of the policy plan. The minimum tenure is limited to five years and the maximum thirty years. During which period, policyholders are provided options of Level Term Assurance, Decreasing Term Assurance with a Loan Protection or a Decreasing Term Assurance with Family Income Protection. Depending on the options the policy plan’s benefits will vary for the policyholder’s nominated family members.
The Level Term Assurance provides a policyholder’s family nominees with the full benefit cover of the policy undertaken by the individual. The maximum assured amount in the Saral Shield policy plan is twenty-four lakh rupees and the minimum is seven lakh, fifty thousand. Depending on the total sum assured by the policyholder, upon death the nominee will benefit with the full amount in the Level Term Assurance plan.
With the Decreasing Term Assurance Plan with Loan protection, the added policyholder’s nominees would benefit from the full amount of the insurance policy on death benefit with the provision of settle any existing loans under the name of the policyholder. For example, is the policyholder availed an insurance policy for twenty lakhs for her family and upon death, had a home loan of five lakhs pending, the bank would take the prerogative of settling the loan amount pending first and award the remaining balance to the nominee, which in this case would be fifteen lakhs.
The Decreasing Term Assurance with Family Income protection is taken in order to provide the family with a stable monthly income post the death of the policyholder. For example, if the policyholder had taken an insurance plan for twenty lakhs, upon death the sum assured would be divided by the tenure and broken into monthly income settlements sent to the family nominees every month till the total sum assured is covered.
SBI Life - Grameen Bima
A special type of SBI Insurance Plan, created for the socially backward or economically vulnerable groups of the society. As a breadwinner for your family, you want to ensure they are financially stable even after your death and in some cases that require additional because your family members may not be well-versed in handling financial matters or susceptible to pressures from the society. In order to maintain the smooth functioning of the family and longevity of the family members left of the deceased policyholder, the Grameen Bima, the plan provides affordability and special sanctions. Within the Grameen Bima, policy plan the bank acknowledges the stringent living conditions of the policyholders and economic difficulties and thereby allows for a minimum sum assured of ten thousand and non-disclosed upper limit. The entry age for a policyholder is limited to eighteen years and capped at a maximum of fifty years. The insurance premiums required to be single payments to reducing and omit any processing fee on the small transactions for the bank and are segmented in multiples of hundred, starting with a minimum of three hundred to a maximum of two thousand. In the Grameen Bima plan, the death maturity benefits of the plan are the sum assured for the nominee. To calculate the sum assured, the total amount of premiums paid is multiplied by sixty times to arrive at the total sum assured. There are no rider benefits for the policyholder to avail as the policy alone consists of special privileges and drastically reduced costs.
These four types of protection plans by the State Bank of India, provide the best value for money and coverage for your family in the event of an untimely demise of the breadwinner in your family. Each of these plans provides significant benefits for the value offered and are all very affordable. While they have been numerically organized they are not in any hierarchical comparison to each other, contrary these are the SBI Life Insurance offering available in the market to date.
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