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SBI Life Smart 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 death of the insured. Monthly benefit will be calculated as sum assured divided by policy term in months.
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 the predefined formula.
There is no survival benefit.


Pros

The policy gives rebate to high sum assured policies. Non-smokers also enjoy discount on premium.
Plan provides surrender value as well.


Cons

Premium can be paid in 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 single amount 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 huge chunk of amount as premium to the insurance company.  
Consider this policy only if you feel no one in your family can handle a lumpsum amount after you.

Eligibility
Entry Age (years) 
Minimum18
Maximum65
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
Maximum30
Sum Assured (Rs) 
Minimum2500000 and in multiples of Rs 1 lakh thereafter
MaximumNo limit
Minimum Premium (Rs) 
Single15000
Premium Payment FrequencySingle
Premium Payment TermSingle
Policy CoverPolicy Cover remains same throughout the policy term.
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 Option
Policy Term (in years)Age (in years)
253035404550556065
5181961834819580223522703235412474566577696852
1025748265242967635688462486343288044127764NA
15318563379238932485286461289520126776NANA
203714040428478886096882000114628NANANA
254198446792565967293298944NANANANA
3046584530166505284716NANANANANA
Figures indicate premiums on a Rs 40 lakh policy for an age over different policy tenures exclusive of service tax