SBI Life - Smart Shield

Name:  SBI Life - Smart Shield

Type of policy: Term Insurance

For buying policy: Yes

If holding policy: Continue

Term insurance is a fantastic product that every single family needs to have, for its earning member(s). It is a pure life insurance policy that gives your family a cover in case of an eventuality to the bread winner. A single term policy of adequate cover will suffice for entire insurance needs.

SBI Life - Smart Shield comes in different variants. Level Term Assurance is the usual term insurance with the sum assured remaining constant throughout the term. Premiums are lowest here. This is the ideal one for you. In Increasing Term Assurance the sum assured steadily increases every year with the premium remaining constant. The premium rate is higher, as you would expect. It is not clear by what percent the increase in sum assured is made. Decreasing Sum Assured (Loan Protection) gives death benefit equivalent to the value of outstanding loan at the time of death. Premium rate depends on the interest rate of home loan. Stay away from this one. It gives inadequate protection to your dependants. Decreasing Sum Assured (Family Income Protection) is a single premium option. Don’t make the mistake of buying this unless you are close to retirement and expect your household expenses to decline steadily going forward.

Additional benefits like critical illness cover and personal accident cover are offered with this policy. But we recommend a standalone critical illness cover as that gives wider range of cover in terms of number of illnesses, renewability and comes at lower premium. Personal accident cover is really an additional expense to be avoided as it covers your life which is already covered by the term policy.

We typically recommend an insurance cover of 4-8 times your annual income and for as long a term as is available for your age. Find out the ideal cover for you using this calculator

Product features:

 

Parameter

Value

Minimum age at entry

18 years

Maximum age at entry

65 years

Maximum policy term

30 years or attainment of 70 years, whichever is earlier

Minimum sum assured

Rs 25 lakh

Maximum sum assured

Unlimited

 

Illustration:

Level Term Assurance

The table shows indicative annual premium for a non-smoking male. Premiums for females may be lower. 

Your age

Term

Indicative Annual Premium

(For cover of Rs.50 lakh )

25 years

25 years

Rs. 7,217

30 years

25 years

Rs. 9,161

40 years

20 years

Rs. 15,424

50 years

10 years

Rs. 23,446

Returns: No survival benefit available at the end of the term. Pure insurance must be considered an expense and not an investment. Both insurance and investment give satisfying outcomes when dealt with separately.

Better alternative

Online policies with similar features can be bought at less than half the premiums on offline policies.

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


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