SBI Life Saral Shield Plan Review
SBI Life Saral Shield Plan Review

SBI Life Saral Shield Plan Review

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SBI Life saral shield Plan is a traditional non-participating long , that’s available at an affordable cost to an individual looking to buy this plan. This plan helps you provide a safety net for you and your family, guaranteeing that they will not need to compromise on their dreams and ambitions.

SBI Life is one of the most trusted brands in India, primarily because it is backed by India’s one of the largest banking institutions, State Bank of India. SBI Life Saral Shield Plan is a simple plan which has additional benefits in the form of riders and has 3 variants of the same, namely Level, Decreasing for Loan Protection and Decreasing for Family Income Protection plan.

Feature of SBI Life Saral Shield Plan

  • There is a special discount for women and large sum assured.
  • There are 3 versions of the term plan- Level Term, Decreasing Term for Loan Protection and for Family Income Protection.
  • Additional rider benefits of Accidental Death Benefit and Total and Permanent Disability Benefit available.
Plan TermMinimumMaximum
Sum Assured 7,50,000/- 24,00,000/-
Policy Term5 Yers30 Yers
Premium Payment Term Equal to policy termEqual to policy term
Entry Age of Policyholder1860
Age at Maturity65
Single premium10,000/-
Payment modesYearly, Half-yearly, Quarterly, Monthly and
Single for Level Term
Only Single for Decreasing Term Plan
SBI Life Saral Shield Plan

Benefit of SBI Life Saral Shield Plan

  • Death Benefit – In case of death of the policy holder, the nominee gets the sum assured according to the plan option selected. In Level Term Plan, the Sum Assured is fixed. But in Decreasing Term plans, the sum assured decreases at a pre-defined schedule.
  • Maturity Benefit – There are no maturity benefits under this plan.
  • Income Tax Benefit – Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

Additional Feature

1.     There are 3 variants of this Policy

A.     Level Term Plan – This is a regular option where the sum assured is constant throughout the term of the policy and is does not vary or change even at the request of the policyholder.

B.     Decreasing Term Plan for Loan Protection – This option is available only if the policyholder has a loan taken under his name. This option protects the loan to such an extent that if something happens to the policyholder during the tenure of the loan and he dies, then the burden of the loan is taken up by the company and is paid off. The burden of the loan does not fall on the family. Since the loan outstanding keeps decreasing each year, the sum assured for loan protection also reduces subsequently.

2.     Riders – There are 2 riders available in this plan.

a.     Accidental Death Benefit Rider

b.     Total and Permanent Disability Rider

What happens if?

You stop paying the premium – If the policy holder stops paying the premium, then the policy would lapse after the grace period ends and all benefits stop. You can however re-instate the policy within 3 years of lapsing by paying up all due premiums with interest.

You want a loan against your policy – There is no loan facility under this policy.

In Decreasing Term Assurance, Surrender Value= Single Premium (exclusive of service tax) x 75% x {Outstanding Term to Maturity / Total Term} x {Effective Sum Assured at time of Surrender / Initial Sum Assured}

In Level Term Assurance, Surrender Value=Single Premium (exclusive of service tax) x 75% x Outstanding Term to Maturity / Total Term

You want to surrender the policy – Surrender Benefits are available only to Single Premium Policies from second year onwards.

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