SBI Life – Saral Shield: Attractive premium makes for a good buy

SBI Life – Saral Shield: Attractive premium makes for a good buy
The protection plan of State Bank of India (SBI) Life Insurance, SBI Life - Saral Shield, is a non participating term insurance plan. It provides protection as well as financial stability of the family of the policy holder in case of the policy holder's death.

In this policy you can choose from 3 plan options:

* Level Term Assurance.

* Decreasing Term Assurance (Loan protection).

* Decreasing Term Assurance (Family income Protection).

It also provides special premium discounts for women. There are rebates for large sum assured.

Age Eligibility: The minimum age for entry is 18 years and maximum age limit is 60 years. Age of maturing of the plan is 65 years.

Sum Assured: The minimum sum assured is Rs. 7.5 lakhs and the maximum sum assured is Rs. 24 lakhs.

Policy Term: The minimum policy term is 5 years. For Level Term Assurance and Decreasing Term Assurance (Family income Protection) the maximum tenure is 30 years while for Decreasing Term Assurance (Loan protection) the maximum tenure is equal to the outstanding loan term subject to maximum of 30 years.

Premium Payment: Single premium as well as regular premium can be paid for Level Term Assurance. While for Decreasing Term Assurance only single premium is to be paid.

Premium Amounts: Minimum amount for single premium is Rs.10,000. For regular premium the minimum monthly premium amount is Rs. 250.


Death Benefit: In case of death of the policy holder during the term of the policy, the nominee will receive the benefits depending on the chosen plan.

Maturity Benefit: No benefit will be paid if the policy holder survives through the term of the policy.

Tax benefit: Tax benefit is available under section 80 c. If premium paid exceeds 10 percent of the sum assured the benefit will be limited to 10 percent of the sum assured during a financial year.

At the time of maturity or surrender, tax exemption is available under section 10(10D) provided the premium paid in any year during the tenure of the policy is not more than 10 percent of the sum assured. However, death proceeds are fully tax exempted.

Click here to read SBI Life - Smart Shield: Should you buy the life policy?

Rider Benefit: Rider benefit offered by Saral Shield include:

* SBI Life - Accidental Death Benefit Rider (UIN: 111B015V02)

* SBI Life - Accidental Total and Permanent Disability Benefit Rider (UIN: 111B016V02)

SBI Life Insurance has high claim settlement ratio. Moreover, the policy can be availed at an affordable price as the premium amounts are less compared to SBI Life - Smart Shield where the minimum monthly premium amount is Rs. 450. So, SBI Saral Shield is advisable for those who want a secured term insurance by paying minimum premium.

Story first published: Wednesday, June 11, 2014, 10:17 [IST]
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