SBI Life Term Insurance with Return of Premium

What is SBI Life Return of Premium Plan?

SBI Life's Return of Premium (ROP) plan is a term insurance product that gives you life cover along with a refund of your premiums if you outlive the policy. Simply put, if you pass away during the policy term, your nominee receives the sum assured as a lump sum, just like a regular term plan. But if you survive the full term, SBI Life pays back 100% of the total premiums you paid (excluding GST, rider costs, and any extra underwriting charges), either as a lump sum or as monthly income depending on the option chosen.

SBI Life offers this feature mainly through its Smart Swadhan Supreme and Saral Swadhan Supreme plans, giving buyers the reassurance that their money isn't "lost" even if the insured event never occurs though this comes at the cost of a noticeably higher premium than a pure term plan with the same coverage.

Learn more about Term Insurance with Return of Premium Plans

Salient Features of SBI Life Term Insurance with Return of Premium

Some of the features of SBI life term plans are:

• These policies are committed to financially securing the insured's family in case of untimely death during the coverage period

• The policies have an added maturity benefit along with the death benefit. The premium amount is returned to the insured in case they outlive the policy period.

• SBI Life Term Insurance with the Return of Premiumplans offers flexibility by allowing the insured to choose between various policy terms as well as multiple premium payment options

• An individual can easily enrol in any SBI term plans, as the purchase option is available through online and offline modes.

Best SBI Life Term Insurance Plans with Return of Premium Plans

SBI Life Insurance company currently offers the return-of-premium feature through a few of their products. The two most popular ROP plans are:

SBI Life - Saral Swadhan Plus

SBI Life - Saral Swadhan Plus is a non-linked and non-participating life insurance term plan that provides fixed life cover throughout the policy period and guaranteed returns at maturity for paid-up and in-force policies.

Features of SBI Life Saral Swadhan Plus

Features of this plan listed below:

• Flexibility - Based on the policy terms and age of entry, an individual can choose an individual has the flexibility to choose their premium and life cover.

• Higher Coverage - An individual can choose their term period for 10 to 15 years. Hence, offering a higher life coverage at a reasonable cost.

• Affordable Premiums - An individual can also choose the premium amount they wish to pay. This makes the plan even more attractive as it is light in their pockets.

• Guaranteed Return of Premium - SBI offers a maturity benefit of 100% or 115% of the total premium paid for a term period of 10 or 15 years, respectively.

• Convenient Purchasing Option - Enrollments are done by filling in a simplified proposal form, and easy purchasing options are available in both offline and online mode.

• Tax Benefits - Tax deductions can be availed for this policy under Section 80C and 10(10D) of the Income Tax Act of India.

“Tax benefit is subject to changes in tax laws.”

Eligibility Criteria of SBI Life TROP Plans

The following criteria have to be met to be eligible to purchase the SBI Life Term Insurance with the return of premiumplan:

• The minimum age at entry cannot be below 18 years old.

• The maximum age at entry cannot be above 65 years old.

• The age at maturity is fixed at 70 years old.

Elements of the Plan

The following elements of the plan should be taken into consideration:

• Policy Term: The regular premium term is ten years, and the limited premium term is 15 years.

• Premium Payment Term (PPT): The premium payment term for both regular and limited terms is fixed at ten years.

• Premium Frequency: The frequency of premium payment is yearly

• Basic Sum Assured: The Sum Assured ranges from Rs 30,000 to Rs 4.75 lakhs

* You can calculate the premiums payable for desired life cover using a term insurance premium calculator.

What does the Plan Offer?

The best term insurance policy in India offers death and maturity benefits within the same plan

• Maturity Benefit
  In the event of the insured outliving their term period, the plan offers a guaranteed return of premium, depending on the policy's term period. If the term period is of 10 years, then the maturity benefit received will be 100% of the total premium paid. If the term period is of 15 years, then the maturity benefit received will be 115% of the total premium paid. The term "total premium paid" can be defined as the Sum of the entire premium received, subtracting the applicable taxes and extra premium paid if any. To avail of this benefit, the insured has to fully pay the premium amount for a minimum of two consecutive policy years.

• Death Benefit
  In the event of the insured's sudden demise, the beneficiary shall be paid the Sum assured, provided the policy term period is still ongoing.

Before we take a look at what is SBI Smart Swadhan Plus you need to understand what is term insurance.

SBI Life - Smart Swadhan Plus

SBI Life - Smart Swadhan Plus aims at securing your happiness and providing protection at a reasonable cost. It is a life insurance plan, which is an individual, non-participating, and non-linked saving product with an additional benefit of the return of premiums at maturity. This plan's major attraction is that it provides the much-needed coverage at an affordable cost and maturity. The insured is liable to receive back the premium paid. It is a traditional term insurance plan in which bonuses are not declared.

Features of SBI Life Smart Swadhan Plus Plan

Features of this plan listed below:

• Security - An individual can secure their family’s financial needs in case of any unforeseen eventuality. The plan offers live coverage to the individual’s family.

• Higher Coverage Period- An individual can choose their term period for 10 to 30 years. Hence, offering higher life coverage at an affordable cost.

• Reliability - SBI Life Term Insurance with the Return of Premiumplan assures a return of 100% of the total premium paid at maturity.

• Flexibility - An individual has the freedom to decide between the various premium payment options offered, namely Regular premium option (same as the policy duration), Limited period, or Single premium option (amount can be paid at once together).

• Death Benefit - In the event of the sudden demise of the policyholder, the Sum assured shall be paid out to the beneficiary.

• Convenient Purchasing Option - Enrollments are done by filling in a simplified proposal form, and easy purchasing options are available in both offline and online mode.

• Tax benefits - Tax deductions can be availed for this policy under Section 80C and 10(10D) of the Income Tax Act of India.

Eligibility Criteria of the Plan

The following criteria have to be met to be eligible to purchase the SBI Life Term Insurance with the Return of Premiumplan:-

• The minimum age at entry cannot be below 18 years old.

• The maximum age at entry cannot be above 65 years old.

• The age at maturity is fixed at 75 years old.

Elements of the Plan

The following elements of the plan should be taken into consideration:

• Policy Term: The policy term period ranges from 10 to 30 years.

• Premium Payment Option: There are five types of plans offered to an individual, namely Single Premium (SP), Limited Premium Payment Term (LPPT) - 5 years, LPPT - 10 years, LPPT - 15 years, and Regular Premium (RP)

• Premium Payment Term (PPT): The premium payment term is a single payment (amount can be paid at once together), 5 years payment, 10 years payment, 15 years payment, and same as policy duration.

• Premium Frequency: The frequency of premium payment is single, yearly, half-yearly, quarterly, and monthly.

• Availability of Policy Term for PPT: For single, regular, and LPPT - 5 years, the policy term available ranges from 10 to 30 years. For LPPT - 10 years, the policy term is 15 to 30 years, and for LPPT - 15 years, the policy term is 20 to 30 years.

• Basic Sum Assured: The minimum Sum assured received by the beneficiary will be Rs 5,00,000. There is no limit to the maximum amount of Sum assured.

• Premium Frequency Loading: For the half-yearly option, it is 52% of the annual premium. It is 26.50% of the annual premium for the quarterly option, and for the monthly option, it is 8.90% of the annual premium.

• The minimum amount to be paidbased on their frequency are Single - Rs. 21,000, yearly - Rs. 2,300, half-yearly - Rs. 1,200, quarterly - Rs. 650 and monthly - Rs. 250.

You can choose to buy a 1 Crore term insurance at an affordable premium for your family's financial protection.

What does the Plan Offer?

Following is the list of term insurance benefits offered by this plan:

• Maturity Benefit
  If the policyholder survives up to the maturity of the plan, he/she is liable to receive 100% of the total premium in a lump sum.

• Death Benefit
  In the case of the policyholder's death, the Sum assured on death will be paid to the beneficiary. Two basic terms to understand to calculate Sum Assured on Death.

  • Basic Sum Assured (BSA): the absolute amount of Sum chosen by the policyholder at the commencement of the policy

  • Annualized Premium (AP): the amount that is calculated when applicable taxes along with extra underwriting premiums and modal amount, if any, is deducted from the yearly premium amount payable by the policyholder

• For SP policies, higher of (BSA or 1.25 times of SP) and for LPPT or RP policies, higher of (BSA or 10 times of AP or 105% of the premiums received till death)

Learn more about SBI Smart Swadhan Plus in hindi

Older/Discontinued Variants

You may also come across SBI Life – Smart Swadhan Plus and SBI Life – Saral Swadhan Plus, which were earlier versions of these ROP plans. SBI Life has since introduced the "Supreme" variants as updated, enhanced versions. If you're buying fresh, check with SBI Life or your advisor on which version is currently open for new sales, as product lineups are periodically revised.

Key Benefits of SBI Life ROP Term Plans

Dual benefit: Life protection plus refund of premiums on survival

Backed by SBI's brand trust, with SBI Life being a joint venture between State Bank of India and BNP Paribas Cardif

Flexible premium payment terms: Regular pay or limited pay (7/10/15 years)

Flexible policy tenure : 10 to 30 years

Rider add-ons for accidental death and disability

Online purchase available, with a simple digital application process

High claim settlement ratio, reflecting reliable claim payouts (check the latest published ratio on the IRDAI annual report or SBI Life's official disclosures)

Key Exclusions

Suicide: In the event of death of the insured due to suicide, from the first date of the policy or from the revival date of the policy, whichever is applicable, the beneficiary will be paid 80% of the total premium amount paid.

SBI ROP Term Plan vs Pure Term Insurance: Which Should You Choose?

This is the most important decision point, so let's compare them directly.

How to Buy SBI Life Term Insurance with Return of Premium

Step 1: Visit the official SBI Life website or a trusted insurance advisor/marketplace.

Step 2: Choose between Smart Swadhan Supreme or Saral Swadhan Supreme based on your required sum assured and age.

Step 3: Select your policy term, premium payment term, and sum assured.

Step 4: Add the Accident Benefit Rider if you want additional protection.

Step 5: Complete the proposal form and any required medical/financial underwriting.

Step 6: Make the premium payment to activate the policy.

You can also visit Policybazaar term insurance to compare and buy the SBI life Term insurance plans. Call us on 1800-258-5970

Policybazaar’s Final Verdict

SBI Life's Term Insurance with Return of Premium plans — Smart Swadhan Supreme and Saral Swadhan Supreme, are solid, trustworthy options if you want the psychological comfort of getting your premiums back. Backed by SBI's reputation, these plans offer flexible tenures, decent sum assured options, and useful riders.

However, if your main goal is maximum financial protection for your family at the lowest possible cost, a pure term insurance plan , by paying a regular premium to get peace of mind and family security.

The right choice ultimately depends on your risk appetite, financial discipline, and personal comfort with "paying for protection without a refund." Before purchasing, always read the latest sales brochure and policy document on SBI Life's official website, as sum assured limits, entry ages, and product versions are updated periodically.

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