SBI Life Insurance Co. Ltd. is a shared undertaking between State Bank of India – the largest public sector lender in India and BNP Paribas Cardif. SBI holds the majority 74 per cent share while PNB Paribas owns the remaining 26 per cent share in this joint venture. SBI Life Insurance was integrated in 2001, soon after the Indian Government opened the life insurance sector for private players. In 2007, SBI Life Insurance accredited with an AAA/Stable/P1+ rating by CRISIL (Credit Rating Information Services of India Limited) which is an auxiliary of global rating agency Standard & Poor’s.
SBI Life Private Insurance freshly launched a new online Term Insurance Plan called SBI Life eShield. This online Term Plan is a non-linked non-participating pure protection plan wherein the profits of the insurance plan are given to the nominees of the policy holder in the event of the death of the policy holder. This term insurance is distinctively structured for the policy holders of a term insurance plan who seek to give the required financial security to their family even in their absence at a reasonably priced premium.
A term insurance is, essentially, a form of traditional insurance which is exclusively used to get coverage. This is how the process works out:
1. Acquiring of the plan: To get a term insurance plan, a policy holder does not have to invest a large sum every year. Affordability is perhaps the best feature of any term plan and therefore, an insignificant premium payment of INR 10,000 per annum can help you get any term plan.
2. Retaining the plan: It is imperative to make timely premium payments so as to stay insured with the term plan. A policy holder must make his premium payments on time as per his/her premium payment frequency.
3. Redeeming the benefits: Characteristically, a term insurance does not have any maturity benefit allocated to it. Its objective is only to cover uncertain life risks and provide financial security to the family of the policy holder in case of any unexpected event.
Main Features of the SBI Life eShield:
1. SBI Life eShield is an online Term Plan with no in-built bonus facility.
2. There are four varied options for choosing coverage in this plan.
3. The Effective Sum Assured in this plan is the Basic Sum Assured chosen for Level Cover options.
4. The Sum Assured increases by 10% every 5th policy year for Increasing Cover options.
5. There is an alternative to choose an Additional Accidental Death Benefit at Policy Inception.
6. Additional Accidental Death Benefit is equivalent to the Basic Sum Assured of INR 50 Lakhs, whichever is lower.
7. There are in-built non-smoker benefits of premium discount.
The 4 Variants of the SBI Life eShield are:
1. Level Cover- Effective Sum Assured in this option is the Basic Sum Assured selected at the beginning of the policy term.
2. Level Cover with Accidental Death Benefit- Effective Sum Assured in this option is the Basic Sum Assured selected at the beginning of the policy term. There is an inbuilt rider of Accidental Death Benefit in which an additional Death Benefit due to an accident is to be remunerated which is equivalent to the Basic Sum Assured or INR 50 Lakhs, whichever is lower.
3. Increasing Cover- Effective Sum Assured in this plan is the Basic Sum Assured that increases by 10% simple interest after every 5th policy year without an increase in premium.
4. Increasing Cover with Accidental Death Benefit- Effective Sum Assured in this plan is the Basic Sum Assured which increases by 10% interest after every 5th year without increase in premium. There is a inbuilt rider of Accidental Death where an additional Death Benefit due to an accident is to be remunerated which is equivalent to the Basic Sum Assured or INR 50 Lakhs, whichever is lower.