SBI Life eShield Review

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 Insurance has a claim settlement ratio of 91.06% as of 2014 which lower than that of LIC whose claim settlement ratio is 97.73%.

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%.

Indicative Premiums

SBI Life eShield Review Premium Illustration

Online Benefits

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:

  1. Level Cover – The Sum Assured remains same throughout the Policy Term.
  2. Level Cover with Accidental Death Benefit – A person gets additional coverage against death due to accident, during the Policy Term.
  3. Increasing Cover – Under this option, Sum Assured is automatically insure by 10% simple every 5th policy year without any increase in premium.
  4. 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.

Sum Assured

Minimum
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.

Tax Benefit

  1. Premium paid is eligible for tax benefits under Section 80C of Income Tax Act.
  2. Benefits received are exempt from tax under Section 10(10D).

Loan Facility

Loan facilities are not available under this SBI Life eShield policy.

Surrender Value

Under this SBI Life eShield policy no surrender values are provided.

Exclusion

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.

Final Words

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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References

SBI Life Website
e Shield Brochure
Policydunia

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.

Subhodeep Mukhopadhyay

I am a Management Consultant in the Education Sector. In my previous corporate career, I have worked in Banking, Private Equity and Software industry. I am an MBA in Finance/ Computer Engineer and enjoy doing equity research and financial analysis in my free time.

2 thoughts on “SBI Life eShield Review

  • September 30, 2015 at 12:02 am
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    I really prefer termed life insurance. It is the most affordable and cheapest life insurance out there. You can not recover the premium you pay when the contingency insured against does not happen but the peace of mind that your family is secured when that day comes is unquantifiable.

    Reply

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