What is SBI Life Smart Shield Plus Term Insurance Policy?
Introduction
Life is unpredictable, and while aspirations grow with every milestone, so do responsibilities. SBI Life – Smart Shield Plus is designed as a pure risk, term life insurance plan that adapts to your evolving needs. Whether you are starting your career, planning a family, buying a home, or preparing for retirement, this plan ensures your loved ones remain financially secure.
It offers three distinct coverage options, the flexibility to extend life cover up to 100 years, and the choice to enhance protection at important life stages—without fresh medical tests in certain scenarios. For those seeking a term plan that combines affordability, adaptability, and comprehensive benefits, Smart Shield Plus stands out in the Indian insurance market.
Key Features of SBI Life Smart Shield Plus
| Feature | Details |
|---|---|
| Plan Type | Individual, Non-Linked, Non-Participating, Pure Risk Life Insurance |
| Plan Options | 1. Level Cover Benefit2. Increasing Cover Benefit3. Level Cover with Future Proofing Benefit |
| Optional Benefits | Better Half Benefit (Spouse Cover), SBI Life – Accident Benefit Rider |
| Life Cover Duration | Up to 100 years (Whole Life) or up to age 79 (non-whole life options) |
| Premium Payment Options | Single Pay, Regular Pay, Limited Pay |
| Sum Assured | Minimum: ₹25 lakh; Maximum: No limit (subject to underwriting) |
| Premium Discounts | Lower rates for higher sum assured, female lives, online purchase, and SBI group staff |
| Tax Benefits | As per the prevailing provisions of the Income Tax Act, 1961 |
| Policy Loan | Not available |
| Maturity Benefit | Not available – pure protection plan |
SBI Life Smart Shield Plus: Plan Options
Level Cover Benefit
The sum assured remains constant throughout the policy term.
Ideal for individuals who want a fixed protection amount.
Suitable for covering specific liabilities like loans or to maintain a fixed income replacement goal.
Increasing Cover Benefit
The sum assured increases automatically by 5% of the original cover each year, starting from the first policy anniversary.
Increases can continue until age 71, capped at 200% of the base sum assured.
Premiums remain constant despite the rising coverage.
Designed for those concerned about inflation and growing family needs.
Level Cover with Future Proofing Benefit
Offers the flexibility to increase your cover at key life stages without fresh medical underwriting.
Life stages eligible for increase:
- Marriage – 50% increase (max ₹50 lakh)
- Birth/Adoption of First Child – 25% increase (max ₹25 lakh)
- Birth/Adoption of Second Child – 25% increase (max ₹25 lakh)
- Purchase of House – 50% increase (max ₹50 lakh or home loan amount, whichever is lower)
Available only for Regular Pay policies with maximum entry age of 40.
Optional Benefits
Better Half Benefit
On the life assured’s death, an additional life cover begins for the spouse.
Coverage continues until the spouse turns 60 or until the remaining policy term ends, whichever is earlier.
Sum Assured: Lower of ₹25 lakh or 50% of base cover.
No premiums are payable after the life assured’s death.
Not payable if the spouse passes away before the life assured.
Accident Benefit Rider
Option A – Accidental Death Benefit (ADB): Extra payout if death is due to an accident.
Option B – Accidental Partial Permanent Disability Benefit (APPD): Lump sum benefit for specific permanent disabilities due to an accident.
Rider sum assured limits: ADB up to ₹2 crore; APPD up to ₹1.5 crore.
Death Benefit
For Regular & Limited Pay:
- Higher of
- 11 × Annualized Premium
- Absolute Sum Assured on Death
- 105% of Total Premiums Paid up to death date
For Single Pay:
- Higher of
- 1.25 × Single Premium
- Absolute Sum Assured on Death
Payout Options for Nominee:
- Lump sum
- Installments (monthly, quarterly, half-yearly, yearly for 5, 10, 15, or 20 years)
- Combination of both
Eligibility & Premium Payment
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age (Other than Whole Life) | 18 years | 65 years (Single/Limited Pay), 60 years (Regular Pay) |
| Entry Age (Whole Life) | 45 years | 45 years |
| Better Half Benefit – Spouse Age | — | 55 years |
| Maturity Age | — | 79 years (other than whole life), 100 years (whole life) |
| Sum Assured | ₹25 lakh | No limit |
| Policy Term | Min: 5 years (10 years for Increasing Cover) | Max: up to 79 years (age at maturity) |
| Premium Modes | Single, Yearly, Half-Yearly, Monthly |
Why Choose SBI Life Smart Shield Plus?
Flexibility with three coverage structures to match different life goals
Inflation-adjusted cover with options to increase cover annually or at life milestones
Spouse protection through Better Half Benefit
Affordable premiums with discounts for higher cover and female policyholders
Rider protection with additional accident-related covers
Trusted brand backed by SBI Life’s strong claims record
Frequently Asked Questions (FAQ)
Is SBI Life Smart Shield Plus a term plan?
Yes, it is a pure risk protection plan with no maturity value, designed to provide financial security to your beneficiaries in case of your death during the policy term.
Can I change my plan option after purchase?
No. Once chosen at inception—Level Cover, Increasing Cover, or Level Cover with Future Proofing—it cannot be changed during the policy term.
Does the premium increase if I choose Increasing Cover Benefit?
No. Your premiums remain fixed even though the sum assured increases annually under this option.
How is the Better Half Benefit useful?
It automatically starts life cover for your spouse after your demise, without the need for additional premiums, ensuring financial continuity for your family.
Are there tax benefits?
Yes, premiums paid may qualify for tax deductions under Section 80C, and payouts may be eligible for tax exemptions under Section 10(10D) of the Income Tax Act, subject to prevailing rules.
Can I buy the policy online?
Yes, and doing so offers an additional premium discount.
What are the alternatives of SBI Life Smart Shield Plus Alternatives?
TATA AIA offers a pure term insurance plan called TATA AIA Maha Raksha Supreme Select.
HDFC Life also recently launched a new pure term insurance plan called HDFC Life Click 2 Protect Supreme.
For women who are considering to buy a term insurance for themselves, have a look at TATA AIA Shubh Shakti.
Summary
SBI Life Smart Shield Plus is a flexible, milestone-driven protection strategy. With its ability to adapt to life events, offer inflation-protected cover, and secure your spouse’s future, it is tailored for individuals seeking more than just basic life insurance. For anyone who values adaptability, affordability, and comprehensive protection, this plan deserves serious consideration.
Venkat