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SBI Life Smart Shield -Decreasing Term Assurance (Loan Protection)

Objective

This policy is designed for those with a loan overhead.


What does it do?

The policy pays sum assured to the nominee in case of death of the insured. Single premium policies can be surrendered after second policy year. The policy doesn’t offer any survival benefit. Sum assured under this plan reduces as the loan is repaid. This option is useful for those who have an outstanding home or car loan liability. Policyholder can choose a sum assured and interest rate closest to the loan amount and interest. The choice of available interest rates includes 6, 8, 10, 12, 14, 16, 18 and 20 per cent. For example, if policyholder has taken a loan at 10.25 per cent, he may either select 10 or 12 per cent as rate of interest to prepare loan schedule under this plan. Similarly, the policyholder can select the sum assured nearest to the loan amount.


Pros

The policy offers rebate on taking a high sum assured.
Females enjoy discount on premium under level term and increasing term assurance options.Non-smokers enjoy premium discount as well.
The policy also offers a surrender value.
Premiums qualify for taxation benefits.


Suited for

This policy is suitable if you have you want separate cover for a loan.


Our View

Loan protection cover is a good way to protect your family from the burden of liabilities in case something happens to you.
When buying such a policy, make sure to match the interest of your loan with the rate at which sum insured reduces under the policy. This ensures that you have the right cover and not one that is higher or lower than your needs.

Eligibility
Entry Age (years) 
Minimum18
Maximum65
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
MaximumLower of outstanding loan term or 30 years
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 decreases with decrease in outstanding loan amount.
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) x 75% x { outstanding term to maturity/ total term} x {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
51909619280207522406029656396565402075908113020
10291603031634756432405814482288116900172876NA
153898842256508326661293056133808194996NANA
2049124555246986494772134576196232NANANA
25600967096092404127860184076NANANANA
307249688908118580166828NANANANANA
Figures indicate premiums on a Rs 40 lakh policy with 10% rate of interest on loan for an age over different policy tenures exclusive of service tax