SBI Life Term Insurance 1 Crore Cover: Is It Worth It?

When securing your family's financial future, it’s essential to take a long-term view. Life is unpredictable, and factors like inflation, escalating living expenses, and unforeseen medical emergencies can significantly strain your finances. That’s why financial planning isn’t just a luxury; it’s necessary for anyone who wants to ensure their loved ones remain protected, no matter what the future holds. This is why we explore the SBI Term Insurance 1 Crore cover to get a better idea of whether it meets your long-term needs.

SBI Life Term Insurance 1 Crore: Overview

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SBI Life as an Insurer

Before you get into the SBI Life Term Insurance 1 crore cover, you must learn more about SBI as an insurer. SBI Life Insurance, backed by the State Bank of India, is one of India’s most reliable insurers. With a vast branch network, robust claim settlement record, and flexible policy options, it has become a preferred choice for term insurance seekers. 

With rising financial responsibilities and inflation (currently 4-5%, with a possible long-term rate of 3-4%), a ₹1 crore term plan has become the benchmark for adequate life insurance. These plans provide financial security for families without straining their budget. But what is the SBI Life Term Insurance 1 Crore cover, and do you need it? 

The SBI Life Term Insurance 1 crore cover plan is a pure protection policy that pays your nominee a lump sum if you pass away during the policy term. This ensures your family can cover:

• Day-to-day expenses
• Personal or home loans
• Future milestones like children’s education, retirement of spouse, etc
• Inflation-adjusted lifestyle

So, who should be opting for it? 

• Young professionals and salaried individuals
• Home loan borrowers
• Sole earners in a family
• Single parents or parents with young children who are dependent on their income

If you want to calculate the correct term cover for your personal needs, check out our term insurance cover calculator. There is no one-size-fits-all solution.

Top SBI Life Term Insurance 1 Crore Plans

SBI Life offers a range of term plans that combine high coverage with affordability, allowing you to tailor your protection according to your life stage, income, and priorities. Below are two of the most popular SBI Life term insurance plans offering ₹1 Crore coverage, each designed to meet different needs and preferences.

1) SBI Life eShield Next

What it is: A fully online, customizable term insurance plan

Who it's for: Ideal for tech-savvy individuals who prefer managing their policies digitally and are looking for flexibility and affordability

Key Features:

• Offers three benefit structures: 
  • Level Cover: This standard option ensures that the sum assured remains fixed throughout the policy term.
  • Increasing Coverage: Your life insurance coverage keeps increasing with growing responsibilities and inflation.  
  • Level Cover with Future Proofing Benefit: Allows an increase in cover during key life events like marriage, birth/adoption of children, and purchase of a house
• Comes with a Terminal Illness Rider included at no extra cost.
• Allows you to opt for optional riders like the Accidental Death Benefit (ADB) and Accidental Partial or Permanent Disability (APPD)
• Premiums are competitive and can be locked in at today’s rates for long-term savings.

Why Choose It: This plan is ideal for individuals seeking a hassle-free, paperless experience and the flexibility to tailor their coverage to life's changes.

Why You Should Not Choose It: This plan lacks inbuilt features like instant payout on claim intimation, cover continuation benefit, and zero cost options. Moreover, the waiver of premium and critical illness benefit riders are also not available here. 

2) SBI Life Smart Shield

What it is: A traditional term insurance plan with additional protection options

Who it's for: Ideal for individuals who prefer in-person consultation, personalized service, and layered security

 Key Features:

• Offers two core coverage types: Level Term Assurance and Increasing Term Assurance
• Flexibility to choose policy term and premium payment modes 

Why choose it: This plan is perfect for those seeking comprehensive protection with the option to improve their policy over time, guided by expert advice.

Both plans offer ₹1 Crore coverage, but your choice should reflect your lifestyle, risk appetite, and preference for digital versus personal engagement. Let’s look at the key features of the SBI Life Term Insurance 1 crore plans to get a better idea.

Key Features of SBI Life Term Insurance 1 Crore Plans

Here’s the explanation of the Key Features table for SBI Life Term Insurance ₹1 Crore plans, broken down by each component:

1) Sum Assured

The Sum Assured is the fixed amount your nominee will receive in case of your unfortunate demise during the policy term. In SBI Life eShield Next, coverage begins at ₹50 lakhs and can extend to an unlimited upper limit, subject to underwriting approvals. This flexibility is excellent for individuals with larger liabilities or higher income replacement needs.

On the other hand, SBI Life Smart Shield starts coverage at ₹25 lakhs, with the maximum sum assured also subject to underwriting. While both plans offer ₹1 crore coverage, eShield Next tends to be the better fit for those seeking higher or custom coverage beyond ₹1 crore.

2) Premium Payment Frequency

Both SBI Life eShield Next and Smart Shield offer flexible premium payment frequencies to suit different budgets and income patterns:

• Yearly
• Half-Yearly
• Monthly

Notably, quarterly payments are not available for the eShield plan. Most policyholders opt for yearly payments to avoid monthly hassles and often enjoy slight cost savings compared to more frequent payment options.

3) Premium Payment Term

Premium payment terms determine how long you’ll need to pay premiums. Both plans offer a range of options:

SBI Life eShield Next:

• Single Pay: One-time payment for the entire policy duration.
• Limited Pay: Choose to pay premiums for 5, 7, 10, 15, 20, or 25 years, or until 5 years before the policy ends.
• Regular Pay: Premiums are paid throughout the entire policy term.

SBI Life Smart Shield:

• Offers Single Pay and Regular Pay options only.
• Limited Pay can benefit individuals who want to pay off their obligations early (e.g., before retirement) but stay covered long-term. For example, pay premiums for 10 years and remain covered for 30 years. This can be an efficient and convenient way to manage long-term finances. 

4) Riders Available

Term insurance riders are optional (or, in some cases, inbuilt) benefits that enhance your base policy coverage:

SBI Life Smart Shield (Optional Riders Only):

• No riders

SBI Life eShield Next (Inbuilt + Optional):

• Better Half Benefit (Inbuilt): After the policyholder’s death, the spouse receives cover under the same policy, a unique and thoughtful add-on.
• Life Stage Benefit (Inbuilt): This benefit increases your coverage for key life events (like marriage or childbirth) without requiring fresh medical underwriting.
• Terminal Illness Benefit (Inbuilt): A portion of the sum assured is paid in advance if diagnosed with a terminal illness.
• Optional Riders:
  • Accidental Death Benefit (ADB): An Additional sum is paid if death occurs due to an accident.
  • Accidental Partial or Permanent Disability (APPD): Offers financial support in case of disabling injuries from accidents.

eShield Next stands out by including critical benefits, making it more comprehensive from the start.

Eligibility Criteria For SBI Life Term Insurance 1 Crore Plans

When considering any term insurance policy, it’s crucial to understand whether you qualify based on your age and policy term preferences. SBI Life has maintained inclusive eligibility criteria, making its products accessible to a wide range of individuals.

1) Entry Age

SBI Life eShield Next and Smart Shield plans are open to individuals between 18 and 60. This wide age bracket enables early earners and late planners to secure affordable premiums and secure their family’s future.

2) Maturity Age

The maximum maturity age depends on the type of plan you opt for:

• For Whole Life coverage: You can be covered up to 100 years of age, which is ideal if you want lifelong protection or leave a legacy.
• Coverage can extend up to 79 years for non-whole life plans, which is more than adequate for most individuals seeking protection until retirement or shortly after.

Why does eligibility matter?

Choosing the correct entry and maturity age impacts:

• Premiums: Younger applicants pay less
• Policy term: Longer terms allow for better long-term financial planning
• Coverage limits: Certain cover amounts may not be available for older age groups

So, while SBI Life makes its term plans accessible, it’s always a good idea to apply early and choose a maturity age that aligns with your dependents’ financial needs and your retirement horizon.

Benefits of Opting for SBI Life Term Insurance 1 Crore Cover

Choosing a ₹1 crore term insurance plan with SBI Life isn’t just about picking a significant number—it’s about ensuring meaningful, long-term protection for your loved ones.

1) Financial protection for family: 

The most fundamental reason to buy term insurance is to ensure your loved ones are financially protected in your absence. A ₹1 crore cover can provide your family with a lump sum payout, giving them the financial bandwidth to manage day-to-day expenses, household bills, school or college fees, and maintain their standard of living—even if your income suddenly stops.

2) Debt and loan coverage: 

Many of us carry some form of liability, whether it’s a home loan, personal loan, or education loan. In the unfortunate event of your passing, these liabilities could fall on your family. A ₹1 crore cover can absorb these financial shocks, settling outstanding debts and ensuring your loved ones don’t have to part with assets or compromise their future.

3) Inflation-adjusted safety net: 

What feels like enough today may not be sufficient tomorrow. With inflation steadily rising (historically at 4–5% annually), expenses, from groceries to healthcare, will continue to increase. SBI Life plans like eShield Next offer increasing cover options, where your life cover automatically grows over time to keep pace with inflation and growing responsibilities.

However, please keep in mind that A ₹1 crore cover today may only have the purchasing power of ₹60–70 (or less) lakhs in 15–20 years. Choosing a plan that adjusts for inflation ensures your coverage remains meaningful.

4) Tax savings under 80C and 10(10D): 

SBI Life Term Insurance plans also offer dual tax benefits, which make them not just a safety net, but a wise financial decision:

1. Section 80C: Premiums paid (up to ₹1.5 lakhs annually) are eligible for tax deductions under the old tax regime.
2. Section 10(10D): The death benefit received by your nominee is completely tax-free, ensuring your family gets the entire sum assured without any deductions.

The ₹1 crore cover is no longer a luxury; it’s quickly becoming a baseline recommendation, especially for young professionals, parents, and sole earners.

Cost & Affordability of SBI Life Term Insurance 1 Crore Plans

For a premium comparison, we’re considering individuals living in a Tier 1 city, such as Delhi, who are insured for ₹1 crore for a policy term of 30 years. 

Please note that the premiums mentioned above are indicative and subject to periodic revision based on underwriting criteria and market conditions. Always check the latest premiums.

SBI vs Other Insurers Comparison

Let’s break down the meaning and significance of each metric to help you read the table:

1) Claim Settlement Ratio (CSR)

The CSR reflects the percentage of claims successfully paid by the insurer. All four insurers in this list perform well, with HDFC Life and Axis Max Life exceeding the 99% mark, while SBI Life’s 97.64% is very close to the industry average (98.13%) and still considered reliable. Generally, a CSR above 97 is considered strong.

2) Amount Settlement Ratio (ASR)

This ratio indicates the total value of claims paid out in relation to the amount claimed. It’s crucial because an insurer might settle many small-value claims, but delay or reject high-value ones. SBI Life (95.2%) and Axis Max Life (96.2%) lead the pack. You should look for higher values here; the higher, the better. 

3) Solvency Ratio

This measures an insurer's financial stability and ability to pay claims, even during periods of stress. The IRDAI mandates a minimum solvency ratio of 1.5, and all the listed insurers exceed this comfortably. SBI Life leads at 2.1, showing high financial strength.

4) Annual Business Volume

This reflects the total premium collected by the insurer in a year. It indicates market trust, scale, and customer base. SBI Life tops the list with ₹31,095 crores, demonstrating its significant market presence.

5) Amount Paid in Claims

This illustrates the amount the insurer has disbursed in death claims. SBI Life and ICICI are among the top payers, indicating strong claim settlement execution, which is significant for large policies.

6) Complaint Volume (per 10,000 claims)

This metric highlights customer dissatisfaction and post-sale experience. HDFC Life shines with just 2 complaints per 10,000 settled claims, while SBI Life is impressive at 4.8 complaints per 10,000 settled claims. ICICI’s complaint volume is relatively high, which may indicate service bottlenecks. A lower complaint volume indicates a smoother experience for your family during the claim process.

SBI Life demonstrates a strong overall performance, underpinned by a solid solvency ratio of 2.1, which indicates excellent financial stability. It maintains a low complaint volume (4.8), suggesting a positive customer experience, and handles large claim payout volumes, reflecting its strong market presence. Its claim settlement ratios are consistent and close to the industry average, reinforcing its reliability.

However, there are a few considerations to keep in mind. While trustworthy, SBI Life's claim settlement ratio is slightly lower than that of top-tier insurers, such as HDFC Life or Axis Life. Additionally, its plans may not always be the most cost-effective; the real value lies in its brand trust, scale, and coverage features. That said, SBI Life’s plans are often less comprehensive than those offered by some competitors, which may affect suitability for those seeking more robust policy benefits.

Now that we’ve compared the insurers based on their metrics, let’s compare them based on their top plan offerings.

HDFC Life offers the most customization and future-proofing, making it suitable for individuals seeking long-term, flexible protection. ICICI Prudential stands out for its excellent claim experience and robust critical illness coverage, making it well-suited for those with health-related concerns. Axis Max Life boasts top claim settlement numbers, offers cost-effective plans, and provides high discounts for salaried individuals. In contrast, SBI Life offers a more basic product with fewer customization options and riders, making it suitable for those seeking straightforward term insurance.

Ditto’s Take on SBI Life Term Insurance 1 Crore Plans

When buying life insurance, you’re not just planning for today but for the next 20 to 30 years. That means your cover amount shouldn’t just match your current expenses, it should account for any future liabilities, rising costs, and inflation.

Here’s how we at Ditto suggest you think about it:

1) Factor in inflation and liabilities: 

A ₹1 crore cover may seem sizable now, but its value will shrink over time due to inflation (currently around 4–5%, possibly 3–4% in the long term). Over a 20–to 30-year horizon, this translates to a significantly lower real value. Factor in ongoing living expenses, your children’s education, retirement goals, and any outstanding loans when deciding on the cover amount.

2) Start early: 

Now is the best time to buy if you're young and healthy. The premium stays fixed for the entire term. As you age or develop health conditions, premiums rise, or worse, you may get rejected.

3) Higher cover = better value: 

A ₹1 crore cover might cost ₹12,000/year, while ₹2 crore might only cost ₹18-20,000/year. Since it’s not exactly double the cost, opting for a higher cover while it’s affordable is a smart move. It provides your family with added security without increasing your expenses.

4) You might not get a second chance: 

PEDs (pre-existing diseases), major illnesses, or even minor lifestyle diseases can lead to higher premiums or outright rejections.

5) Use tools to calculate the right cover.

Instead of picking a round number like ₹1 crore, use Ditto’s free term insurance coverage calculator to determine the amount that fits your specific situation. It’s quick, accurate, and if you’re ever confused, you can always speak to an advisor.

How to Buy the right Term Plan Ditto

Buying term insurance is one of the most important financial decisions you’ll ever make—and doing it right can save you money while ensuring your family is fully protected. At Ditto, we make this process simple, transparent, and tailored to your needs.

Here’s how you can buy the right ₹1 crore insurance policy SBI through Ditto

1) Understand How Much Coverage You Need

Before choosing a policy, it’s essential to calculate how much coverage will protect your family. This depends on:

• Your current and future expenses
• Outstanding loans (home, personal, education)
• Future financial goals (child’s education, spouse’s retirement)
• Inflation (assume 4–5% annually)

Use our free Cover Calculator to estimate the ideal sum assured based on your lifestyle and responsibilities.

2) Compare Plans Across Insurers

Once you know your coverage needs, compare the best term insurance plans in India—not just by premium, but by:

• Claim settlement ratio
• Features & riders available
• Insurer’s financial strength
• Flexibility in payment terms

You can easily compare policies using Ditto’s Plan Comparison Tool, which transparently breaks down each plan's pros and cons.

Why Choose Ditto for Buying Term Insurance

At Ditto, we’ve assisted over 7,00,000 customers with choosing the right insurance policy. Why customers like Srinivas below love us:

✅No-Spam & No Salesmen

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Final Thoughts & Summary

The SBI Life Insurance 1 Crore policy balances affordability and comprehensive protection. With plan options like eShield Next and Smart Shield, you get flexibility in premium payments, built-in benefits like terminal illness coverage, and optional riders for enhanced safety. While SBI Life may not have the highest claim settlement ratio in the market, its solid solvency, extensive claim payout history, and trusted brand make it a reliable choice for term insurance.

However, always remember that ₹1 crore today might not be enough in 20–30 years, due to inflation. If your budget allows, consider opting for a slightly higher coverage or increasing term options.

Frequently Asked Questions