SBI Life eShield Next
The SBI Life eShield Next is an online term insurance plan which is non-linked (low risk) and non-participating (fixed premium based on the sum assured). Due to its independence from the stock market and lack of distribution of profits or dividends to policyholders, the plan offers guaranteed returns.
One of the leading insurance providers of India, SBI Life upgraded their SBI Life eShield plan to have the option to increase your sum assured as you grow older and bear more responsibilities.
This traditional individual life insurance has 3 plan options and additional coverage through 2 rider options. This customizable plan helps you protect your family by offering life cover up to 100 years with a whole life.
SBI Life eShield Next Plans Important Features
- Option to choose from 3 plan options to meet your different security needs: level cover, increasing cover, and level cover with future-proofing benefits.
- Offers different Life cover options for 85 years or Whole life (up to 100 years).
- You can choose different options to pay the premium.
- You get two additional rider benefits for accidental death and permanent disability.
- Availability of Terminal Illness benefit under all plans.
- Customize the plan by using either Death Benefit Payment Mode or Better Half Benefit to meet your needs.
SBI Life eShield Plan Benefits
- Maturity Benefit: Since this is a pure-term plan, it does not have maturity benefits.
- Death Benefit: The nominee receives the Effective Sum Assured as a Death Benefit in the event that the Life Insured passes away during the Policy Tenure. When level cover options are selected, Effective Sum Assured = Basic Sum Assured. Effective Sum Assured is the sum insured that, for Increasing Cover options, rises by 10% every fifth policy year.
- Income Tax Benefit: Section 80C allows for the deduction of up to Rs.1,50,000 in annual life insurance premiums from taxable income, and Section 10(10)D allows for the tax-free distribution of maturity proceeds upon the satisfaction of certain requirements.
- Level Cover: The Effective Sum Assured is the Basic Sum Assured chosen at Policy Inception.
- Accidental Death Benefit and Level Coverage: The Effective Sum Assured is the Basic Sum Assured chosen at Policy Inception, and a supplemental Death Benefit is paid in the event of an accident, up to the Basic Sum Assured or Rs.50 lakhs, whichever is less.
- Increasing Coverage: The Effective Sum Assured is the Basic Sum Assured, which grows by 10% simple interest after every fifth policy year without a premium increase.
- Grace Period: After the due date, a 30-day grace period is offered for premium payments, during which time the policy is still in force.
- Terminal Illness Benefit: In the event that the life assured receives a terminal illness diagnosis during the policy term or before turning 80, whichever occurs first, a benefit equal to the sum assured on death as of the diagnosis date is payable, subject to a maximum of Rs.2,00,00,000 (for in-force policies).
- Freelook Period: If the coverage, terms, and conditions are unsatisfactory, the policy may be cancelled within 15 days of receiving the policy documents, provided there hasn't been a claim.
- Additional Features/Riders: Under the SBI Life eShield Next plan, discounts are given to applicants who are not smokers and women. These organisations are entitled to a sizable discount.
The table given below describes the policy features in detail.
Policy features | Details |
Cover Duration | You may select the duration of the policy under the plan up to the age of 80. This implies that you can sign up for insurance well past the age at which you plan to retire, which is typically between 60 and 65. |
Life cover Benefit | The SBI Life eShield Next Term Plan will provide your family with an assured sum of money if you pass away while the policy's term is still in effect. You won't receive anything if you live past the policy's term because this policy doesn't have a maturity benefit. In accordance with Section 80C of the Income Tax Act, this term insurance policy is eligible for tax advantages. |
Increasing Cover | Once you've chosen an appropriate sum assured that satisfies your family's current financial needs, the SBI Life eShield Next Plan offers you an increasing cover through which you can increase the sum assured by 10% every five years, until the end of the policy term. This may only be a minor drawback since there are other plans that provide a 5% increase each year. |
Entry age for the policy | You must be at least 18 years old and no older than 65 in order to apply for this policy. |
Claim Payout Options | You need to be aware of a limitation with the claim payout options. Under this plan, you are unable to change how your family receives the claim payment. It only offers the option of one payout. Therefore, if your nominee is someone who might not be able to manage a sizeable sum of money (let's say Rs.2 crores that suddenly appear in their bank account), taking out this policy could become risky for you. They might choose to spend all of their money too soon in life, make poor financial decisions, or both, leaving them unable to pay for their basic living expenses. Only choose this strategy if you're confident that your nominee or family will successfully manage the claim amount, or at the very least, if they will. |
Limited Pay Options | You might not be a good candidate for the SBI Life eShield Next Plan if you prefer to pay all of your premiums at once. There are no options for restricted pay under this plan. As a result, you will need to continue making your monthly or yearly premium payments until the end of your term. |
Exclusions Under SBI Life eShield Next
Although SBI Life eShield Next promises to pay the sum assured in case of the life insured's death, there are some exclusions that apply to this term insurance plan.
- These exclusions are put in place to protect the insurance company in certain situations that are not considered natural or accidental death.
- If the life insured commits suicide within 12 months of policy inception or revival, the nominee will receive only 80% of the total premiums paid.
- Furthermore, there are exclusions for the accidental death benefit rider, such as criminal activity, war or civil unrest, self-inflicted injuries, drug misuse, or diseases, for which the nominee will not be entitled to any payment.
Eligibility Criteria | Age (Years) |
Minimum Entry Age | |
Whole Life Cover | 45 |
Other Than Whole Life Cover | 18 |
Maximum Entry Age | |
Single Premium | 65 |
Regular Premium | 60 |
Better Half Benefit | 55 |
Maximum Maturity Age | |
Single and Regular Premium | 85 |
Whole Life | 100 |
Sample Illustration of SBI Life eShield Next plan
Mr.Craig, a 35-year-old non-smoker, opts for a Level Cover of Rs. 1 crore with a policy term of 30 years. He pays a yearly premium of Rs. 10,000.
- Scenario 1: Craig survives the policy term
If Craig survives the policy term of 30 years, he will not receive any payout as this is a pure-term insurance plan with no maturity benefit.
- Scenario 2: Craig passes away during the policy term
If Craig passes away during the policy term, his nominee will receive the Effective Sum Assured, i.e., Rs.1 crore, as a death benefit.
- Scenario 3: Craig is diagnosed with a terminal illness
If Craig is diagnosed with a terminal illness during the policy term, the policy will pay a Terminal Illness Benefit equal to the sum assured on the diagnosis date, subject to a maximum of Rs.2 crores.
Note: This is just an illustration, and actual benefits may vary depending on the chosen plan option, age, policy term, premium amount, and other factors. It is always recommended to read the policy documents carefully before purchasing any insurance plan.
Rider benefits SBI Life eShield Next plan
SBI Life eShield Next plan offers various rider benefits that can be added to the base policy for additional protection. Here are some of the rider benefits offered by SBI Life:
- SBI Life eShield Next plan Accidental Death Benefit Rider: This rider provides an additional benefit to the nominee in case of death due to an accident.
- SBI Life eShield Next plan Accidental Total and Permanent Disability Benefit Rider: This rider provides a lump sum benefit to the policyholder in case of total and permanent disability due to an accident.
FAQs on SBI Life eShield Next
- What is SBI Life?
SBI Life is an Indian company that provides life insurance (Traditional Savings, Unit Linked Insurance and erm Life Insurance Plans). It was established in 2001 as a result of a partnership between SBI Bank and BNP Paribas Cardif. The business has 947 branches nationwide and its headquarters are in Mumbai. Mahesh Kumar Sharma serves as the SBI Life CEO.
- Can I avail of tax benefits under SBI Life – eShield Next?
Yes, the premiums paid towards the plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
- What is the premium payment frequency for SBI Life – eShield Next?
The premium payment frequency for the plan can be chosen as monthly, quarterly, half-yearly or annually, depending on your convenience.
- Can I purchase SBI Life – eShield Next online?
Yes, the plan can be purchased online through the SBI Life Insurance website or mobile app, making it a convenient and hassle-free process.
- What are the exclusions under SBI Life eShield Next?
Suicide within 12 months of the policy inception or revival is excluded, and accidental death due to criminal activity, war or civil unrest, self-inflicted injuries, drug misuse, or diseases are not covered under the accidental death benefit rider.
- Is there a free look period available in SBI Life eShield Next?
Yes, there is a free look period of 15 days from the receipt of the policy documents to review the terms and conditions of the plan.
- What is the grace period for premium payment in SBI Life eShield Next?
There is a grace period of 30 days for premium payment in SBI Life eShield Next.
- Is there a surrender value for SBI Life eShield Next?
No, there is no surrender value for SBI Life eShield Next, as it is a pure-term insurance plan.
- Can I change the premium payment frequency during the policy term?
Yes, you can change the premium payment frequency during the policy term, subject to certain conditions and charges.
- Can I take a loan against my SBI Life eShield Next policy?
No, you cannot take a loan against SBI Life eShield Next, as it is a pure-term insurance plan.
- Is a medical examination required to apply for SBI Life eShield Next?
A Medical examination may be required based on the age, sum assured, and medical history of the applicant.
- Are there any discounts available under SBI Life eShield Next?
Yes, discounts are available under SBI Life eShield Next. There are additional discounts for non-smokers and women applicants under this insurance policy.
- What happens if I stop paying premiums for my SBI Life eShield Next policy?
If you stop paying premiums for your SBI Life eShield Next policy, the policy will lapse and the insurance cover will cease. You may be able to revive the policy within the stipulated time period by paying the outstanding premiums and interest.
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