SBI Life eShield is a term life insurance policy which provides financial protection to a person’s family in case of his sudden demise. If the person survives till the end of the policy term, he does not get back any amount.
A term life insurance provides significant monetary protection against death at fairly low prices.
SBI Life eShield Smoker versus Non-smoker Category
Under this plan, if one is a non-smoker his premium rates will be lower for sum assured of Rs 50 lakhs and above
If you smoke or use tobacco in other forms, your premium will be roughly 25-30% higher than that of a non- smoker.
For Sum Assured upto Rs. 49 lakhs premium rates are same for both smokers and non-smokers. For Sum Assured Rs. 50 lakhs and above there is an option to choose differential premium rate for Non-smoker. Non-smoker life is significantly lower than smoker life, more than 50%.
SBI Life – eShield is available through on-line mode and no intermediaries are involved. It therefore offers and easy and seamless online interface to get life cover. Hence it is more convenient and cheaper as compared to an offline policy.
SBI Life eShield Plan Options
SBI Life – eShield comes with 4 options:
- Level Cover – The Sum Assured remains same throughout the Policy Term.
- Level Cover with Accidental Death Benefit – A person gets additional coverage against death due to accident, during the Policy Term.
- Increasing Cover – Under this option, Sum Assured is automatically insure by 10% simple every 5th policy year without any increase in premium.
- Increasing Cover with Accidental Death Benefit – Benefits of increasing cover as point “3” above along with additional coverage against death due to accident.
The Accidental Death Benefit will be equal to the Basic sum assured or Rs. 50 Lakhs whichever is lower.
The Effective Sum Assured in this plan is the Basic Sum Assured chosen for Level Cover options.
Death Benefit of SBI Life eShield
In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
Maturity Benefit of SBI Life eShield
No survival benefit available at the end of the term.
Rs. 20,00,000 for general category
Rs. 50,00,000 for Non-smoker category
Maximum – No limit
Qualifying Criteria of SBI Life eShield
- Minimum Age at Entry is 18 years.
- Maximum age at entry for Level Cover & Level Cover with Accidental Death Benefitis is 65 years.
- Maximum Age at entry for Increasing Cover & Increasing Cover with Accidental Death Benefit is 60 years.
- Maximum cover ceasing age is 75 years.
- Minimum Policy Term for Level Cover & Level Cover with Accidental Death Benefitis is 5 years.
- Minimum Policy Term for Increasing Cover & Increasing Cover with Accidental Death Benefit is 10 years.
- Maximum Policy Term is 30 years
Mode of Payment
Premiums are to be paid annually.
- Premium paid is eligible for tax benefits under Section 80C of Income Tax Act.
- Benefits received are exempt from tax under Section 10(10D).
Loan facilities are not available under this SBI Life eShield policy.
Under this SBI Life eShield policy no surrender values are provided.
If a policyholder dies within 1 year of the start of the policy due to suicide, 80% of premiums paid will be paid as death benefit.
SBI Life eShield is a very good term insurance product from SBI Life which is among the better trusted names in insurance in India. A pure term insurance is a must buy for everyone, and in that respect Option 1 of SBI Life – eShield is quite competitive. However for the other options it is better to compare them against buying pure term cover and a separate accident policy with disability benefits.
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I hope you found this article useful. I have provided this article for educational purpose only.
If you have any comments on my SBI Life eShield review please feel free to contact me. Before making any investment decision, please contact your financial adviser.