SBI eShield Term Insurance Explained
Table of Contents
SBI Life eShield Plan is an online Term insurance plan which provides high insurance covers at attractive premiums. In this plan, the family of the policyholder (customer) gets the entire benefit amount tax-free in the event of death of the policyholder.
SBI Life eShield Plan Variants
There are 4 variants of the plan:
- Level Cover- The Effective Sum Assured in this option is the Basic Sum Assured chosen at Policy Inception.
- Level Cover with Accidental Death Benefit- The Effective Sum Assured in this option is the Basic Sum Assured chosen at Policy Inception. There is an inbuilt rider of Accidental Death Benefit where an additional Death Benefit due to an accident would be paid which is equal to the Basic Sum Assured or Rs 50 lakhs, whichever is lower.
- Increasing Cover- The Effective Sum Assured in this plan is the Basic Sum Assured which increases by 10% simple interest after every 5th policy year without increase in premium.
- Increasing Cover with Accidental Death - The Effective Sum Assured in this plan is the Basic Sum Assured which increases by 10% simple interest after every 5th policy year without increase in premium. There is an inbuilt rider of Accidental Death Benefit where an additional Death Benefit due to an accident would be paid which is equal to the Basic Sum Assured or Rs 50 lakhs, whichever is lower.
Being a pure term insurance plan it has no maturity benefits.
Read more: SBI Term Insurance Plans For Senior Citizens
Key Features of SBI Life eShield Policy
- It is an online Term Plan with no Bonus facility
- There are 4 options for choosing coverage in this plan
- The Effective Sum Assured in this plan is the Basic Sum Assured chosen for Level Cover options
- The Sum Assured increases by 10% every 5th policy year for Increasing Cover options
- There is an option of choosing an Additional Accidental Death Benefit at Policy Inception
- Additional Accidental Death Benefit is equal to the Basic Sum Assured of Rs 50 lakhs, whichever is lower
- There are non-smoker benefits of premium discount in this plan
Benefits You Get From SBI Life eShield Insurance Policy
Death Benefit
In case of death of the Life Insured within the Policy Tenure, the nominee gets the Effective Sum Assured as Death Benefit.
The Effective Death Benefit depends on the plan option chosen:
- Effective Sum Assured = Basic Sum Assured chosen for Level Cover options
- Effective Sum Assured = Sum Assured which increases by 10% every 5th policy year for Increasing Cover options
Maturity Benefit
Being a pure term plan, there are no Maturity Benefits.
Income Tax Benefit
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
Additional Features and Benefits of SBI Life eShield Plan
Accidental Death Benefit Rider is provided as an inbuilt option for Plan variants 2 and 4 at Policy Inception, i.e. Level Cover with Accidental Death Benefit Option and Increasing Cover with Accidental Death Benefit Option. The Accidental Death Benefit Sum Assured is equal to the Basic Sum Assured chosen at Policy Inception of Rs 50 Lakh, whichever is lower.
Conclusion
If the policy holder stops paying the premium, the policy lapses and all benefits cease. However, the policy can be revived within 3 years from the due date of the policy inception. There are no Surrender Benefits in this plan. Loan facility is not available in this plan.
Also read: Top SBI Term Insurance Plans To Secure Your Family With
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
