Life throws uncertainties at every turn, making it a top priority to secure the future of one’s family. One of the most popular and trusted solutions among Indians seeking reliable and affordable life covers has been the SBI Term Life Insurance. These plans come with flexible premiums while offering high coverage backed by the name of State Bank of India, which ensures your family stays financially secure even when you are not around anymore. This guide will take you through all the details you need to know about SBI Term Life Insurance.
What is SBI Term Life Insurance?
SBI Term Life Insurance is a pure protection plan designed to provide a lump-sum benefit to your family in case of your untimely death during the policy term. Unlike traditional insurance, it doesn’t build savings or maturity benefits. Instead, it focuses purely on financial security for dependents.
Key highlights:
Affordable premium rates
Large coverage amount (Sum Assured)
Flexible tenure options
Choice of riders for enhanced protection
Claim settlement ratio above 95%
Why Choose SBI Term Life Insurance?
Choosing a term plan is about trust and reliability. SBI Life Insurance Company is a joint venture between the State Bank of India and BNP Paribas Cardif, making it a credible and strong insurer.
Benefits of choosing SBI Term Life Insurance:
Trusted Brand – SBI is India’s most trusted financial institution.
Low Premiums – Get high coverage with pocket-friendly premiums.
Variety of Plans – Options like SBI Life eShield Next, SBI Life Saral Jeevan Bima, etc.
High Claim Settlement Ratio – 95%+ CSR ensures your family won’t face unnecessary hurdles.
Flexibility – Customize coverage with riders such as accidental death benefit, critical illness, or waiver of premium.
Popular SBI Term Life Insurance Plans
1. SBI Life eShield Next
Designed for tech-savvy individuals who prefer online purchases.
Offers a death benefit plus coverage against terminal illness.
Premiums are lower when purchased online.
2. SBI Life Saral Jeevan Bima
Standard plan with simple features.
Suitable for first-time buyers.
Available for all income groups.
3. SBI Life Smart Shield
Pure protection with a high sum assured.
Choice between Level Term Assurance and Increasing Term Assurance.
Riders available for accidental death and total permanent disability.
4. SBI Life Poorna Suraksha
Unique plan that increases critical illness coverage every year.
Balances life cover and medical protection.
Key Features of SBI Term Life Insurance
Entry Age: 18 to 65 years (varies by plan)
Policy Term: 5 to 80 years
Sum Assured: ₹25 lakhs to ₹2 crores or more
Premium Payment Options: Monthly, quarterly, yearly, or single premium
Tax Benefits: Premiums qualify for deductions under Section 80C & 10(10D) of the Income Tax Act
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Eligibility Criteria
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years (depending on plan)
Maximum Maturity Age: Up to 85 years
Residency: Indian citizens and NRIs are eligible
Premium Calculation for SBI Term Life Insurance
Premiums depend on several factors:
Age at entry
Gender
Lifestyle habits (smoker/non-smoker)
Sum assured
Policy term
👉 Example: A 30-year-old non-smoker male can get a ₹1 crore cover for around ₹800–1000 per month.
Premiums depend on age, lifestyle, and coverage. For example:
| Age | Coverage (₹1 Cr) | Term (30 years) | Premium (per month) |
|---|---|---|---|
| 25 years | ₹1 Crore | 30 years | ₹750 |
| 30 years | ₹1 Crore | 30 years | ₹950 |
| 40 years | ₹1 Crore | 30 years | ₹1,800 |
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Riders Available with SBI Term Life Insurance
Accidental Death Benefit Rider
Critical Illness Rider
Permanent Disability Rider
Waiver of Premium Rider
These add-ons ensure complete financial protection.
Claim Settlement Process
Filing a claim is simple with SBI Life:
Notify the insurer about the death of the policyholder.
Submit documents such as policy papers, death certificates, ID proof, etc.
Verification & Approval – SBI reviews the claim.
Claim payout – Sum assured is paid to the nominee.
SBI has a strong record of quick and transparent claim settlements.
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Pros and Cons of SBI Term Life Insurance
✅ Pros
Affordable premium rates
Strong claim settlement ratio
Variety of plans for different needs
SBI’s strong brand trust
❌ Cons
No maturity benefit
Medical tests are required in most cases
Some riders increase the overall premium.
Tips to Choose the Best SBI Term Life Insurance Plan
Assess your family’s financial needs and liabilities.
Choose a sum assured of at least 10–15 times your annual income.
Compare different SBI plans before deciding.
Add riders only if necessary to avoid extra costs.
Always disclose correct health and lifestyle information.
Frequently Asked Questions (FAQs)
Q1. Is SBI term life insurance available online?
Yes, SBI Life eShield Next can be bought online easily.
Q2. Can NRIs buy SBI term insurance?
Yes, NRIs are eligible for specific SBI Life Insurance plans.
Q3. Does the SBI term plan cover COVID-19?
Yes, death due to COVID-19 is covered under term plans.
Q4. Can I increase my coverage later?
Some plans allow increasing coverage at milestones like marriage or childbirth.
Q5. How much tax benefit can I get?
Premiums up to ₹1.5 lakhs are deductible under Section 80C.
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SBI Term Life Insurance – Detailed Plan Explanation
1. SBI Life eShield Next
SBI Life eShield Next is a modern term insurance plan designed especially for individuals who want to buy insurance online. It offers multiple coverage options and ensures financial security for the policyholder’s family in case of an untimely death.
Key Features
Pure protection plan with online purchase facility.
Multiple coverage options: Level Cover, Increasing Cover, and Decreasing Cover.
Death benefit payable in case of the policyholder’s demise.
Terminal illness benefit included.
An extensive coverage amount is available at affordable premiums.
Coverage Options
Level Cover Benefit: The sum assured remains the same throughout the policy term.
Increasing Cover Benefit: The sum assured increases annually (usually at a 10% simple rate) to keep pace with inflation.
Decreasing Cover Benefit: The sum assured decreases gradually, making it useful for individuals with loans where liability decreases over time.
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years
Maximum Maturity Age: 85 years
Policy Term: 5–85 years (depending on plan)
Minimum Sum Assured: ₹50 lakhs (varies by plan)
Premium Payment Options
Single, regular, or limited premium payment modes.
Choice of monthly, quarterly, half-yearly, or annual payments.
Riders Available
Accidental Death Benefit Rider
Waiver of Premium Rider
Critical Illness Rider (optional)
Benefits
Provides financial protection at low cost.
Option to customize coverage according to lifestyle and personal goals.
Tax benefits under Sections 80C and 10(10D).
Terminal illness protection ensures payout even during a life-threatening illness.
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Example
For a 30-year-old non-smoker opting for ₹ one crore cover for 30 years, the annual premium could be around ₹9,000–₹10,000.
Pros
✅ Multiple cover options
✅ Affordable online premiums
✅ Flexibility in payment terms
Cons
❌ No maturity benefit
❌ Medical tests required for a high sum assured
Best For
Young professionals, working parents, and loan borrowers who want simple, affordable online protection.
2. SBI Life Saral Jeevan Bima
SBI Life Saral Jeevan Bima is a simple, standardized term insurance plan. It was launched in accordance with IRDAI guidelines to ensure that every citizen, especially first-time buyers and lower-income individuals, can access term insurance. SBI Term Life Insurance
Key Features
Pure risk cover without complex terms.
Fixed benefits are the same across all insurers offering “Saral Jeevan Bima.”
Affordable premiums suitable for all sections of society.
Covers people without income documents as well.
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years
Maximum Maturity Age: 70 years
Policy Term: 5–40 years
Minimum Sum Assured: ₹5 lakhs
Maximum Sum Assured: ₹25 lakhs
Premium Payment Options
Regular, Limited, or Single Premium modes.
Benefits
Easy to understand with standard features.
No complex riders or conditions.
Ensures financial support for the family in case of death.
Available to all, including those with irregular income.
Example
A 35-year-old can buy a ₹10 lakh cover for 20 years by paying around ₹3,500 annually.
Pros
✅ Simple and transparent plan
✅ Low premiums
✅ Available for individuals without stable income proof
Cons
❌ Low maximum coverage (₹25 lakhs)
❌ Limited flexibility compared to other SBI plans
Best For
First-time insurance buyers, low-income families, daily wage earners, and individuals with limited financial literacy.
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3. SBI Life Smart Shield
SBI Life Smart Shield is a comprehensive term insurance plan that gives customers the choice of protection options and add-on riders to suit their financial needs.
Key Features
High protection at low premium.
Two plan options:
Level Term Assurance – Fixed sum assured.
Increasing Term Assurance – Sum assured increases every year.
Wide range of riders to enhance protection.
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 60 years
Maximum Maturity Age: 80 years
Minimum Sum Assured: ₹25 lakhs
No maximum limit (subject to underwriting)
Policy Term: 5–30 years
Premium Payment Options
Regular, Single, or Limited Premium payment modes.
Riders Available
Accidental Death Benefit Rider
Accidental Total & Permanent Disability Rider
Accelerated Critical Illness Rider
Waiver of Premium Rider
Benefits
Flexibility to choose coverage type.
Enhances protection through multiple riders.
Offers extensive coverage, making it suitable for high-income individuals.
Tax benefits available.
Example
A 40-year-old opting for ₹1 crore cover under Increasing Term Assurance for 25 years may pay around ₹20,000 annually.
Pros
✅ Large coverage option
✅ Flexible rider choices
✅ Suitable for high-net-worth individuals
Cons
❌ Premiums are higher compared to Saral Jeevan Bima
❌ Requires medical tests in most cases
Best For
Professionals, entrepreneurs, and individuals with dependents and financial liabilities.
4. SBI Life Poorna Suraksha
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SBI Life Poorna Suraksha is a unique term plan that provides life insurance along with critical illness coverage. Unlike basic term plans, this one increases the critical illness sum assured every year. SBI Term Life Insurance
Key Features
Dual protection: Life cover + Critical Illness cover.
Critical illness cover increases by 10% each year (till it equals life cover).
Covers 36 major critical illnesses.
Automatic balancing between life cover and critical illness cover.
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years
Maximum Maturity Age: 75 years
Policy Term: 10–30 years
Minimum Sum Assured: ₹20 lakhs
Premium Payment Options
Regular and Limited Premium options.
Benefits
Protection against death and medical emergencies.
Increasing critical illness cover without an extra premium.
One-time payout on diagnosis of covered illness.
Helps manage medical costs without burdening family finances.
Example
A 35-year-old non-smoker buying a ₹50 lakh life cover with critical illness protection for 25 years might pay around ₹15,000–₹18,000 annually.
Pros
✅ Dual benefit of life cover + health cover
✅ Increasing the critical illness sum assured every year
✅ Financial help during serious illnesses
Cons
❌ Premiums are higher compared to pure term plans
❌ Coverage ends at 75 years (lower than eShield Next)
Best For
People with a family history of critical illness, middle-aged professionals, and those seeking both life and health protection in one plan. SBI Term Life Insurance
Final Thoughts
Each of the four SBI term plans serves different customer needs:
SBI Life eShield Next → For young, tech-savvy buyers wanting affordable online protection.
SBI Life Saral Jeevan Bima → For first-time, low-income buyers who want simple, standard coverage.
SBI Life Smart Shield → For professionals and high-income earners looking for customizable, high-value cover with multiple riders.
SBI Life Poorna Suraksha → For individuals concerned about health risks and critical illnesses.
By understanding these plans deeply, you can choose the right one that matches your financial responsibilities and your family’s future needs.
