SBI Life Smart Shield - Increasing Term Assurance Plan

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SBI Life Smart Shield -Increasing Term Assurance Plan

	Objective		This is an increasing term policy that aims to negate the impact of inflation on your insurance cover.
What does it do?		The sum assured under this policy increases by 5 per cent every year, but the policy also charges an additional premium for this. This option aims to cancel the effect of inflation and improved standard of living. In case of unfortunate demise of life insured, the family members receive increased sum assured as death benefit. Single premium payment policies can be surrendered only after second policy year. The policy doesn't offer any survival benefit. The policy offers three optional riders for additional protection.
Pros		High sum assured policies can get rebate on premium. Females can get discount on premium under level term and increasing term assurance options. Non-smokers also get discount on premium. The policy offers a surrender value. Critical illness rider covers 13 illnesses unlike other term plans covering an average of 6 diseases. Premiums paid under the policy qualify for tax benefit under section 80C of Income Tax Act.
Cons		Riders can be availed only at inception of the policy. There is a waiting period of 90 days to avail Accelerated Critical Illness cover.
Suited for		Anyone who expects higher responsibilities and improved standard of living in future, can take this policy.
Our View		You can consider this policy if you need a high sum assured in future to match rising standard of living. The percentage increase is fixed at 5 per cent which may or may not be able to beat inflation or match the increase in your expenses. The yearly increase in sum assured doesn't come for free as the policy premium also increases with time. Riders can be added depending on your needs. Do not opt for single premium payment because it proves to be costly. The reason we say this is because in case something goes wrong in early years of the policy, you have already paid a huge chunk of amount as premium to the insurance company.
Eligibility
Entry Age (years)
Minimum		18
Maximum		65
Maximum Maturity Age (years)		70
Policy Term (years)
Minimum		5
Maximum		30
Sum Assured (Rs)
Minimum		2500000 and in multiples of Rs 1 lakh thereafter
Maximum		No limit
Minimum Premium (Rs)
Yearly		5000
Quarterly		1250
Monthly		450
Single		15000
Premium Payment Frequency		Single, Yearly, Half-yearly, Quarterly, Monthly (through ECS)
Premium Payment Term		Single, Equal to policy tenure
Policy Cover		Cover keeps increasing @ 5% every year.
Other Features
Free Look Cancellation		In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace Period		You are allowed to pay premiums within 30 days of premium due date for Yearly/ Half-yearly/Quarterly premium payment and 15 days from premium due date in case of Monthly premium payment. If a due premium is not received within the grace period, your policy will lapse and the life insurance cover, including the rider cover, if any, will be terminated.
Lapsed Policy Reinstatement		You may reinstate your lapsed policy within 3 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements, if any.
Tax Benefits		Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
Exclusions		In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit
Surrender Value		Allowed for Single Premium Plans only. It is calculated as: Single premium (exclusive of service tax) x 80% x {outstanding term to maturity/ total term}
Customer Service
Address		SBI Life Insurance Corporate Address: "Natraj", M.V. Road & Western Express Highway Junction, Andheri (East), Mumbai - 400 069
Mail To		info@sbilife.co.in
Call On		1800 22 9090, 1800 425 9010 from 9am to 9 pm on all days
Additions to the Plan
Available Rider(s)		Accidental Death Benefit (ADB) Rider: covers death due to an accident. Accidental Total and Permanent Disability Benefit Rider: covers Accidental dismemberment (loss of limbs and/or eye(s) and Permanent total disability due to an accident. Accelerated Critical Illness Benefit: covers 13 Critical Illnesses namely, Cancer, Coronary Artery Bypass Surgery, Heart Attack, Heart Valve Surgery, Kidney Failure, Major Burns, Major Organ Transplant, Paralysis, Stroke, Surgery of Aorta, Coma, Motor Neuron Disease and Multiple Sclerosis
Rider Conditions
Entry Age (years)
Minimum		18
Maximum		ADB Rider and Accidental Total and Permanent Disability Benefit Rider: 65 Accelerated Critical Illness Benefit Rider: 60
Maximum Maturity Age (years)		ADB Rider and Accidental Total and Permanent Disability Benefit Rider: 70 Accelerated Critical Illness Benefit Rider: 65
Rider Term (years)
Maximum		Equal to base policy term
Sum Assured (Rs)
Minimum		ADB Rider and Accidental Total and Permanent Disability Benefit Rider: 25000 Accelerated Critical Illness Benefit Rider: 500000
Maximum		ADB Rider and Accidental Total and Permanent Disability Benefit Rider: Lower of 5000000 or Base Sum Assured Accelerated Critical Illness Benefit Rider: 3000000
Rider Premium (Rs)		Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the ADB rider and Accidental Total and Permanent Disability Benefit Rider for Rs 5 lakh sum assured over a 10 year tenure; the annual ADB rider premium works to Rs 250 or Rs 1,745 in case of a single premium plan and the annual Accidental Total and Permanent Disability Benefit rider premium works to Rs 200 or Rs 1395 in case of single premium payment plan. Similarly, Critical Illness benefit of 5 lakh for a policy tenure of 5 years costs Rs 751 per annum

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