SBI Term Insurance Grace Period

The grace period for term insurance premium payments is important because an individual may not always be in a condition to make payments on the due date. SBI Life Insurance, one of the leading insurers offers a grace period during which you can pay for your premiums in case you forget to on the due date. If there were no grace period for term insurance, a single delay in paying premiums could lead to a policy lapse.

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What Is Grace Period for SBI Term Insurance?

The grace period is the maximum number of additional days provided by the insurer to pay your term insurance renewal premium. Simply put, it refers to the time period that begins right after the due date of the premium payment. SBI term insurance plan provides an extended period after the due premium payment date, during which you can pay your premium, without worrying about losing on policy benefits. This grace period is different for all the various premium payment modes offered by the insurance company. 

There are 2 premium payment methods for term insurance plans: 

  • Single premium: One-time lump sum payment 

  • Regular premiums: Divided into monthly, quarterly, and half-annually installments according to the insurer.

Let us take a look at the SBI life insurance company’s grace periods for different term insurance premium modes.  

Premium Payment Mode Grace Period
Monthly 15 days
Quarterly 30 days
Bi-annually 30 days
Yearly 30 days

How Does SBI Term Insurance Grace Period Work?

The term insurance grace period helps policyholders keep their plans active by providing them with an extended period after their due date to pay their premiums. So if suppose, you have purchased a term life insurance with a monthly premium payment mode and the due date for premium payment is 1st of every month, then you would get a grace period of 15 days to pay your premiums. This means that you can pay your premiums anytime till the 15th day of the month, without losing the term insurance benefits.

What Happens When The SBI Term Insurance Grace Period Is Over?

If the grace period expires and you still haven't paid the term insurance premium then the policy is canceled. The lapse of policy means you will no longer be covered against the risks and you will lose all the premiums. You will also not be able to get any returns, in case you have purchased a term plan with the return of premiums option.

Should You Buy A New Term Plan or Revive The Lapsed Policy?

SBI life term insurance offers its customers the option to revive a lapsed policy within the first two years of policy lapse after the end of the grace period. In case you wish to revive your term plan, you might have to go through medical examinations again, depending on the company’s policy guidelines. After the end of these two years, you may have no choice but to purchase a new term insurance plan. 

However, if you are confused between reviving the old policy or buying a new term plan, you should compare the costs for both before making the decision. If the cost of reviving the old policy is much more than the cost of purchasing a new plan, then you should purchase a new term life insurance and make sure to pay the premiums on time to avoid any further policy lapses.

Key Requirements To Revive SBI Term Insurance

Here is a list of all the documents required to revive the old SBI Term life insurance.

For a policy in lapse for less than 6 months

  • Outstanding Premiums

  • Revival Charges

For a plan in lapse for more than 6 months

  • Outstanding Premiums

  • Revival and Interest rates charges

  • PHS (Personal Health Statement)

  • Revival and quotes application

For a plan in lapse for more than a year

  • Outstanding Premiums

  • Revival and Interest rates charges

  • Revival and quotes application

  • Self-attested ID and Address proof

  • PHS (Personal Health Statement)

  • Income Proof

Wrapping It Up!

The grace period is an essential feature that allows customers to pay their premiums even after the end of their due date. SBI term insurance provides this facility at no extra cost and you can pay your premiums easily without losing your term insurance coverage and benefits.


  • How many days of grace are allowed for yearly premiums?

    SBI term insurance offers a grace period of 30 days for their term plans with yearly premium payment modes.
  • Can I renew lapsed policy?

    Yes, you can renew lapsed term plan as most insurers offer a period of 2 years after the end of the grace period to restart the policy and get life coverage.
  • Q.What is the grace period allowed for policy renewal?

    SBI term life insurance allows you to revive your lapsed policy 2 years after the end of the grace period.
  • Why is grace period important?

    Grace period is important as it offers flexibility in paying your premiums regularly. It allows you to pay your premiums even after the premium payment date has passed without having to suffer any additional costs.
  • Does a 10-day grace period include weekends?

    Yes, the grace period often includes weekends and bank holidays.
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SBI Term Insurance Grace Period Reviews & Ratings

4.3 / 5 (Based on 29 Reviews)
(Showing Newest 10 reviews)
Abohar, March 10, 2021
Financial stability for my family
I got the sbi general term insurance plan last year as I am concerned about my family. I searched various great plans and got to know into the website of policybazaar. Such great plans. Great work.
Baripada, March 09, 2021
Various good offers
I have recently bought a sbi term insurance plan from the website of the policybazaar. I am happy that policybazaar and team provided me with so many good offers at reasonable prices. Thanks.
Ambala, January 08, 2019
Less costly
This is the plan which I have bought from SBI. Here we have to make the lump sum payment of premium amount. And in case if the person dies then the amount which has been paid will be given to the family. The premium amount is less costly. I like the plan and would recommend everyone.
Mubarakpur, October 10, 2016
SBI term insurance
SBI life eshield Term insurance policy which i buy from sbi life insurance ltd is perfect policy plan. Insurance gave me more security and more benefits. Service is fast which is given by the company members. Renewal of the plan can be done through online portal service.
Sorada, August 24, 2016
My my sbi life eshield insurance policy is the best. Policy gives maximum coverage and claims are good. The service is quick and behaviour is very nice from the whole members of the company. Good decision to take this term insurance plan.
Kota, July 27, 2016
SBI term policy
Every one have insurances in this time, so i buy one for me and my family safety. Service given by the company members is fabulous and my plan is sbi term insurance which is a quality product. It gives full facilities to me and my parents.
Tezpur, July 27, 2016
Fantastic Insurance
Very fine terms and conditions of my sbi life eshield insurance plan. The coverage is maximum and claims are even better. Services provided by executives of the company is awesome and on time. 24X7 assistance by the staff members.
Katehri, July 27, 2016
High Coverage
SBI eshield insurance plan i have is fabulous, i took it from sbi policy insurers. Just the premiums are little bit high but the returns are huge with good number of benefits. The service is super fast and renewals can be done on web portal.
Madhuban, July 27, 2016
Term plan
The colleague of mine suggested me a online sbi saral plan. The policy is perfect and it coverage ratio is about 91%. Service by the members of the insurance company is quick and due to this the claiming become more easier than before. Sbi policy i have satisfies me completely.
Rajkot, April 21, 2016
Great Policy
I buy sbi life term insurance plan. The policy coverage is 94% and the premiums are low ~28 K. The claims are easily sanctioned because the service is fast from the executives side and from online web page also. The policy premiums are 5% less for women. Great investment which saves taxes too.
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