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SBI Life Saral Shield -Decreasing Term Assurance (Family Income Protection)

Objective

This policy aims at providing financial stability to a family, in case of death of the breadwinner, by replacing the insured's income with monthly payouts.


What does it do?

This term plan pays sum assured as monthly installments to the nominee in case of loss of life of the insured. Monthly benefit will be calculated as sum assured divided by policy term in months.
However, the nominee can also ask for premium as a lump sum which will be a discounted value of remaining monthly payouts.
The plan allows the policyholder to surrender the policy after second policy year. Surrender value will be calculated as per a predefined formula.
There is no survival benefit.


Pros

Women get 3 per cent discount on premium for level term assurance.
The plan offers rebate on high sum assured.
Premiums paid toward the policy qualify for tax benefit under section 80C of Income Tax Act.


Cons

Premiums can be paid as single installment only.


Suited for

This policy is suitable if your family cannot deftly manage a lump sum amount in your absence.


Our View

Premium towards this policy can be paid as a single payout only, which is a major drawback. Single premium plan may prove to be expensive as compared to regular premium payment option as you lock-in a large amount for a fixed cover. The reason we say this is because in case something goes wrong in early years of the policy, you have already paid a large amount as premium, to the insurance company.  
Under regular premium option, in case of a mishap, the family members  receive sum assured and future premiums are waived off, something that cannot be done for a single premium policy.
Consider this policy only if you think your family cannot manage a lump sum amount in your absence.

Eligibility
Entry Age (years) 
Minimum18
Maximum60
Maximum Maturity Age (years)65
Policy Term (years) 
Minimum5
Maximum30
Sum Assured (Rs) 
Minimum750000
Maximum2400000
Minimum Premium (Rs) 
Single10000
Premium Payment FrequencySingle
Premium Payment TermSingle
Policy CoverPolicy decreases with time
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 30 days of premium due date for Yearly/ Half-yearly/Quarterly premium payment and 15 days from premium due date in case of Monthly premium payment. If a due premium is not received within the grace period, your policy will lapse and the life insurance cover, including the rider cover, if any, will be terminated.
Lapsed Policy ReinstatementYou may reinstate your lapsed policy within 3 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements, if any.
Tax BenefitsSection 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit
Surrender ValueSingle Premium (exclusive of service tax)* 75%* (outstanding term to maturity/ Total Term)* (effective Sum Assured at time of surrender/ Initial Sum Assured)
Customer Service 
AddressSBI Life Insurance Corporate Address: "Natraj",
M.V. Road & Western Express Highway Junction,
Andheri (East), Mumbai - 400 069
Mail To[email protected]
Call On1800 22 9090, 1800 425 9010 from 9am to 9 pm on all days
Single Premium
Policy Term (in years) Age (in years)
2530354045505560
5NA NA NA 1187016010237443500051620
1013936146401715422008306444513465794NA
15187362031024358319244482665088NA NA
202297825560313724167058316NA NA NA
2526878306543829451074NA NA NA NA
30306343567645022NA NA NA NA NA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax