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SBI Life Smart Shield -Increasing Term Assurance Plan

Objective

This is an increasing term policy that aims to negate the impact of inflation on your insurance cover.


What does it do?

The sum assured under this policy increases by 5 per cent every year, but the policy also charges an additional premium for this. This option aims to cancel the effect of inflation and improved standard of living. In case of unfortunate demise of life insured, the family members receive increased sum assured as death benefit.
Single premium payment policies can be surrendered only after second policy year.
The policy doesn’t offer any survival benefit. The policy offers three optional riders for additional protection.


Pros

High sum assured policies can get rebate on premium.
Females can get discount on premium under level term and increasing term assurance options.
Non-smokers also get discount on premium.
The policy offers a surrender value.
Critical illness rider covers 13 illnesses unlike other term plans covering an average of 6 diseases.
Premiums paid under the policy qualify for tax benefit under section 80C of Income Tax Act.


Cons

Riders can be availed only at inception of the policy.
There is a waiting period of 90 days to avail Accelerated Critical Illness cover.


Suited for

Anyone who expects higher responsibilities and improved standard of living in future, can take this policy.


Our View

You can consider this policy if you need a high sum assured in future to match rising standard of living. The percentage increase is fixed at 5 per cent which may or may not be able to beat inflation or match the increase in your expenses.
The yearly increase in sum assured doesn’t come for free as the policy premium also increases with time. Riders can be added depending on your needs.
Do not opt for single premium payment because it proves to be costly. 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.

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) 
Yearly5000
Quarterly1250
Monthly450
Single15000
Premium Payment FrequencySingle, Yearly, Half-yearly, Quarterly, Monthly (through ECS)
Premium Payment TermSingle, Equal to policy tenure
Policy CoverCover keeps increasing @ 5% every year.
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 ValueAllowed for Single Premium Plans only. It is calculated as: Single premium (exclusive of service tax) x 80% x {outstanding term to maturity/ total term}
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
Available Rider(s)Accidental Death Benefit (ADB) Rider: covers death due to an accident.
Accidental Total and Permanent Disability Benefit Rider: covers Accidental dismemberment (loss of limbs and/or eye(s) and Permanent total disability due to an accident.
Accelerated Critical Illness Benefit: covers 13 Critical Illnesses namely, Cancer, Coronary Artery Bypass Surgery, Heart Attack, Heart Valve Surgery, Kidney Failure, Major Burns, Major Organ Transplant, Paralysis, Stroke, Surgery of Aorta, Coma, Motor Neuron Disease and Multiple Sclerosis
Rider Conditions 
Entry Age (years) 
Minimum18
MaximumADB Rider and Accidental Total and Permanent Disability Benefit Rider: 65 Accelerated Critical Illness Benefit Rider: 60
Maximum Maturity Age (years)ADB Rider and Accidental Total and Permanent Disability Benefit Rider: 70 Accelerated Critical Illness Benefit Rider: 65
Rider Term (years) 
MaximumEqual to base policy term
Sum Assured (Rs) 
MinimumADB Rider and Accidental Total and Permanent Disability Benefit Rider: 25000 Accelerated Critical Illness Benefit Rider: 500000
MaximumADB Rider and Accidental Total and Permanent Disability Benefit Rider: Lower of 5000000 or Base Sum Assured Accelerated Critical Illness Benefit Rider: 3000000
Rider Premium (Rs)Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the ADB rider and Accidental Total and Permanent Disability Benefit Rider for Rs 5 lakh sum assured over a 10 year tenure; the annual ADB rider premium works to Rs 250 or Rs 1,745 in case of a single premium plan and the annual Accidental Total and Permanent Disability Benefit rider premium works to Rs 200 or Rs 1395 in case of single premium payment plan. Similarly, Critical Illness benefit of 5 lakh for a policy tenure of 5 years costs Rs 751 per annum
Annual Premium Option for Male
Policy Term (in years)Age (in years)
253035404550556065
562366360718889081196817284247923704057804
106236636077801051615328226843386452496NA
1562367268958813740203203052846752NANA
207020882012300179402683640988NANANA
25835211132158842347235600NANANANA
3010292141482052830784NANANANANA
Figures indicate premiums on a Rs 40 lakh policy for an age over different policy tenures exclusive of service tax
Annual Premium Option for Female
Policy Term (in years)Age (in years)
253035404550556065
56112626865807804986813832200642581224792
10611262686784868012136179922500827552NA
1561126524800411000160562284827664NANA
20641275849980142882026025576NANANA
2573449268127761793622944NANANANA
308764116161588820392NANANANANA
Figures indicate premiums on a Rs 40 lakh policy for an age over different policy tenures exclusive of service tax

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