SBI term insurance is one of the most popular choices in India. SBI Life Insurance is trusted by millions of Indian families to protect their loved ones. This guide explains everything you need to know in simple words.
What is SBI Term Insurance?
SBI term insurance is pure life insurance.
- You pay a small amount (premium) every month or year.
- If something happens to you, your family gets a big payout (sum assured).
- If you survive the policy, you don’t get money back (but that means you’re safe 🎉).
👉 Think of it like renting protection. You pay little to protect your family from big financial problems.
Q1. Which authority regulates car insurance companies in India?
Why SBI Term Insurance is Popular
✔️ Trusted Brand – Connected to State Bank of India
✔️ Affordable Premiums – Cheaper than other insurance types
✔️ Good Claim Settlement – Most claims get approved
✔️ Strong Presence – Available in all major cities and towns
✔️ Tax Benefits – Save under Section 80C
Q2. What is the maximum maturity age for most SBI Term Insurance plans?
Latest SBI Term Insurance Plans (2025)
| Plan | Key Features | Best For |
|---|---|---|
| SBI Life Smart Shield Plus (NEW – Aug 2025) | Future-ready, flexible coverage, Better Half Benefit, 3 plan options | Modern families needing flexibility |
| SBI Life eShield Next | Online purchase, competitive premiums, no maturity benefit | Tech-savvy buyers |
| SBI Life Smart Shield Premier | Level cover, increasing cover, Better Half Benefit | People who want coverage that grows |
| SBI Life Saral Swadhan Supreme | Simple, quick issuance, easy to understand | First-time buyers who want no confusion |
Q3. What is the minimum coverage amount under SBI Term Insurance?
Features & Benefits of SBI Term Insurance
Basic Coverage
- Minimum: ₹25 lakh
- Maximum: ₹10 crore+
- Policy Term: 5–40 years
- Maturity Age: Up to 85 years
Riders (Optional Add-ons)
🛡️ Accidental Death Benefit
🛡️ Critical Illness Cover
🛡️ Disability Cover
🛡️ Waiver of Premium
🛡️ Income Benefit (monthly payout to family)
Better Half Benefit
Special feature where spouse also gets life cover without separate premium (available in some plans).
Q4. Which SBI Term Plan can you buy fully online?
Eligibility
| Criteria | Requirement |
|---|---|
| Entry Age | 18–65 years |
| Maximum Maturity Age | Up to 85 years (varies by plan) |
| Health | Should be in good health, may require medical tests |
| Income | Must show regular income proof (coverage = 10–20× annual income) |
Q5. What is the “Better Half Benefit” in SBI Term Insurance?
How Much Does SBI Term Insurance Cost?
Sample Premiums (₹1 Crore Coverage, Approx.)
| Age (Male, Non-Smoker) | Monthly Premium | Yearly Premium |
|---|---|---|
| 25 years | ₹400–600 | ₹4,500–7,000 |
| 30 years | ₹600–900 | ₹7,000–10,000 |
| 35 years | ₹900–1,400 | ₹10,000–16,000 |
💡 Factors affecting premium: Age, health, smoking, gender, coverage amount, policy term.
Q6. How much is the approximate monthly premium for a 25-year-old male non-smoker for ₹1 crore coverage?
How to Buy SBI Term Insurance (Step by Step)
- Choose Plan – Compare different SBI term plans.
- Calculate Premium – Use SBI Life online calculator.
- Apply Online/Offline
- Online: Fill form, upload documents, pay online.
- Offline: Visit SBI Life branch or agent.
- Medical Tests – For high coverage, SBI arranges free tests.
- Policy Issuance – After approval, you get policy documents.
Q7. Which feature allows your spouse to get life cover without separate premium?
Documents Needed
- 📋 Age Proof – Aadhaar, Passport, 10th Certificate
- 📋 Address Proof – Aadhaar, Utility Bill, Rent Agreement
- 📋 Identity Proof – PAN, Driving License
- 📋 Income Proof – Salary slips, ITR, Bank statements
- 📋 Medical Reports – If health issues exist
Claim Process
- Inform SBI Life immediately after insured person’s death.
- Submit Documents: Death certificate, policy copy, ID proof, medical reports.
- Investigation (if needed).
- Settlement:
- Simple cases: 15–30 days
- Complex cases: 3–6 months
👉 SBI Life has a good claim settlement ratio (most genuine claims are paid).
Q8. How long does SBI Life usually take to settle simple claims?
Tax Benefits
| Section | Benefit |
|---|---|
| 80C | Premium paid deductible up to ₹1.5 lakh/year |
| 10(10D) | Money received by family is fully tax-free |
Advantages
For You (Policyholder):
- Affordable protection
- Tax savings
- Multiple plan options
- Strong SBI brand trust
- Easy online services
For Family:
- Large payout in case of death
- Covers loans, debts, education costs
- Helps maintain lifestyle
- Tax-free money
Q9. Which section allows tax deduction for premiums paid under SBI Term Insurance?
Common Mistakes to Avoid
❌ Buying too little coverage
❌ Waiting too long to buy (premiums rise with age)
❌ Hiding health problems (may lead to claim rejection)
❌ Not informing family about policy details
SBI vs Other Companies
Why SBI Life is good:
🥇 Trusted SBI brand
🥇 Wide network & customer support
🥇 Good claim record
When to check others:
- If you want slightly cheaper premiums
- If you want special riders not available in SBI
- If you prefer fully online-only insurers
Q10. Which of the following is a common mistake while buying SBI Term Insurance?
Final Summary
✅ Good For: Families, first-time buyers, home loan protection, tax savers.
❌ Not For: People wanting investment + insurance in one product.
👉 Bottom Line: SBI Term Insurance is one of the safest and most affordable ways to protect your family. The new Smart Shield Plus (2025) adds modern flexibility, while SBI’s trusted name ensures peace of mind.
SBI term insurance is one of the most popular life insurance choices in India. SBI Life Insurance is trusted by millions of Indian families for protecting their loved ones. This guide will help you understand everything about SBI term insurance using simple words.