SBI Life eIncome Shield is a term insurance policy which offers periodic monthly benefits to the beneficiary/nominee in case the life assured faces sudden or early death. In addition to that, the plan also offers the option to the insurance holders to choose the type of monthly income they want their family to receive. The monthly income is available in 2 types: a) Fixed or b) Increasing.
SBI Life eIncome Shield plan –Overview:
SBI Life Smart Income Shield Plan is a term insurance plan wherein the death benefit is provided in staggered form under Monthly Income Scheme and not as a lump sum amount.
The policyholders will get the option to choose from 4 different types of benefits at the time of policy inception. Once the benefit option is selected, it cannot be changed later on. Under this plan, the premium amount can be paid either under Regular Premium Option throughout the policy tenure or under Limited Payment Option for a limited term.
Eligibility Criteria for SBI Life eIncome Shield Plan:
|Entry Age||18 years||50 years|
|Maturity Age||60 years|
|Policy Term||10 years||35 years|
|Premium Payment Term||Same as Policy Term|
Benefits & Features of SBI Life eIncome Shield Plan:
The four benefit options available under this SBI term plan are:
- Benefit Option A: Under this benefit option, the monthly income of the policyholder would be level.
- Benefit Option B: Under this benefit option, the monthly income of the insured would keep on increasing at a simple rate of 3% on every policy anniversary. It would remain fixed thereafter for the particular policy year.
- Benefit Option C: Under this benefit option, the monthly income would keep on increasing at a simple rate of 5% on every policy anniversary. It would remain fixed thereafter for the specific policy year.
- Benefit Option C: Under this benefit option, the monthly income would keep on increasing at a simple rate of 10% on every policy anniversary. It would remain fixed thereafter for the policy year.
There is no surrender benefit available under this plan.
There is no paid-up value benefit available under SBI Life eIncome Shield Plan.
Grace Period and Revival Facility:
The company offers 30 days of grace period for annual premium-payment mode and 15 days of grace period for monthly premium-payment mode. During this grace period, the policy will remain in force and the insurance holder can still avail of the benefits of the SBI Life eIncome Shield Plan. However, the plan will lapse if the premium remains unpaid until the end of the grace period.
The policyholders can get their lapsed policies revived within 2 years from the first premium non-payment date, provided they are able to produce satisfactory proof of insurability applicable at the time of reviving the policy.
Tax rebate is available u/s 80C. However, if the premium will exceed 10% of the sum insured, the tax benefit will be limited up to 10% of the sum insured.
Tax exemption on the premium paid is available u/s 10(10)D, provided the premium amount does not exceed 10% of the sum insured in any of the active policy years. However, death benefit payout is completely tax-free under SBI Life eIncome Shield Plan.
Please note that tax benefits will be available as per the applicable tax laws and are subject to changes.
FAQs of SBI Life eIncome Shield Plan:
Q1) Do I need to appear for medical examination to enrol into SBI Life Income eShield plan? If yes, would I have to pay for the charges incurred for medical tests?
You may need to appear for the medical tests to enrol into the policy depending on the details shared by you. The requirement to undergo a medical test is decided based on the age, sum insured, policy term and other details shared by you in your proposal form. Furthermore, this is also based on the internal requirements underwriting guidelines of SBI Life company.
You don’t need to pay for the medical examination fees as it is borne by the company.
Q2) What are the maturity benefits available under SBI Life eIncome Shield plan?
As it’s a pure term insurance plan, it doesn’t have any maturity benefit.
Q3) Are there any rider benefits available under SBI eIncome Shield plan?
No, SBI eIncome Shield plan doesn’t offer any rider benefits.
Q4) Do we have an option to surrender SBI eIncome Shield plan? If yes, what are the benefits offered?
As it’s a pure term insurance plan, there is no surrender option available in SBI eIncome Shield plan As a result of this, there are no surrender benefits payable either.
Q5) Whom can we appoint as a nominee in SBI eIncome Shield plan?
As per Section 39 of the Insurance Act, 19938, the insurance holder can nominate a person or more than one person at any time during the policy tenure.
Q6) Can we assign the policy?
Yes. According to Section 38 of Insurance Act, 198, the policyholder has the option to assign the policy.
Q7) Are there any exclusion under SBI Life eIncome Shield plan?
Yes, there are certain exclusions available under the plan.
The policy doesn’t cover death of the insured occurred due to suicide or indulgence in any life-threatening activity during the first 12 months from the policy inception date. The same condition applies in case of policy reinstatement or revival. The plan will become null and void in such cases and the nominee will be given an amount equal to 80% of the premiums paid till the date of the death of the policyholder.
Q8) Does SBI eIncome Shield Plan offer loan facility?
No, there is no loan facility available under the plan.
Q9) What is the free look cancellation period available under SBI Life eIncome Shield Plan?
The plan offers the customers an option to review the terms & conditions within 30 days of policy receipt. If you are not satisfied with the terms & conditions, you can return the plan while mentioning your cancellation reason.
You will get the refund of the premium amount paid after taking out the stamp duty charges and expenses incurred for medical examination if any.