SBI Life e-Shield - Increasing Cover

Objective

This is an online increasing cover policy that aims to provide financial security to nominees in case of death of the insured. The policy protects beneficiaries from inflation and supports rising standard of living.

What does it do?

The policy increases sum assured by 10 percent after every five years of the  policy. Nominee will receive increased sum assured in case of policyholder’s death.
Applicant has an option to take an additional Accidental Death Benefit where the insurer will pay an extra sum over and above the basic sum assured, if death takes place due to an accident within 120 days of its occurrence. Accidental Death benefit will be equal to the basic sum assured upto maximum of Rs 50 lakh. Accidental Death Benefit will not increase with time.
The policy does not pay any surrender or maturity value if the insured survives the term.

Pros

This policy can be bought online.
Women and non-smokers can avail discount on premium.
Optional Accidental Death Benefit widens the scope of coverage.

Suited for

This policy is suitable for those who expect an increase in responsibilities, a raise in standard of living or those who wish to negate the impact of inflation on their insurance cover.

Our View

A pure risk term plan is a definite buy for everyone. If you think your insurance needs will increase with time, you can buy this policy.
Accidental Death Benefit is a valuable feature but it cannot substitute a standalone Personal Accident policy. A standalone policy covers against Accidental death and disability. Disability is a more severe condition with little or no income and higher expenses for medical treatment of the disabled. If you are looking for accidental protection, standalone accidental policy is a better option.