SBI Life ₹1 Crore Term Insurance Plan

A ₹1 crore term insurance cover can work as a basic level of protection for responsibilities like home loans, children’s education, and household expenses if you’re no longer around. However, choosing the right insurer is often where most people struggle.

This is where SBI Life often stands out. Backed by the State Bank of India’s brand, it carries strong trust, a wide reach, and consistently solid claim settlement ratios.

This guide explains how a ₹1 crore SBI Life term plan works, highlights its key benefits, and helps you decide whether it fits your needs.

Note: For exact coverage details, exclusions, and rider conditions, always refer to the official policy wording.

Key Features of ₹1 Crore SBI Term Insurance

1. Straightforward Life Cover: Smart Shield Plus focuses on core life protection without adding unnecessary features, making it easier to understand and manage over the long term.
2. Cover that Grows with Life Events: The Future Proofing option allows you to increase your sum assured after important milestones like marriage, the birth or adoption of a child, or taking a home loan, without the need to buy a separate policy or go through fresh medical tests, subject to plan conditions.
3. Choice in Claim Payout: You can decide how your nominee receives the payout, either as a lump sum, a monthly income, or a mix of both. In most cases, a lump sum gives your family greater flexibility to repay large loans or invest the money based on their priorities.
4. Add-on Riders, if Needed: The plan includes optional riders such as Accidental Death Benefit, Accidental Partial Permanent Disability, and the Better Half rider for spouse protection. Keep in mind that rider limits and availability differ, so it’s important to assess whether they add real value for your situation.

Benefits of ₹1 Crore SBI Term Insurance

1. Choice between Fixed and Growing Cover: You can opt for a level sum assured or choose an increasing cover that rises by 5% each year (simple interest) and can go up to 200% of the base cover. 
2. Extended Coverage Duration: Smart Shield Plus offers coverage up to age 100, making it suitable for those who want protection that extends well into later life.
3. Adapts to Major Life Stages: With the Future Proofing feature, you can increase your cover after important milestones such as marriage, childbirth, or taking a home loan. 
4. Financial Security for Your Spouse: The Better Half rider provides automatic life cover for your spouse after the policyholder’s death, subject to specific terms and limits.

5. Premium Payment Flexibility: You can choose between single pay, regular pay, or limited pay options. This allows you to structure premium payments in a way that suits your income and cash flow.
6. Reassuring Claim Track Record: SBI Life reports an average Claim Settlement Ratio (CSR) of 98.24% for FY 2022–25, which is above the industry average but does not make the cut when it comes to the top 10 term insurers ranked by their CSR. It also has an Amount Settlement Ratio (ASR) of 95.2% for FY 2021–24 and only 5.62 complaints per 10,000 claims.

The indicative annual premiums are for a healthy, non-smoker male; ₹1 crore cover, premiums payable till policy maturity at age 65.

Note: SBI Life’s premiums generally fall between the lowest- and highest-priced plans in this comparison. Reviewing options helps balance pricing with long-term reliability.

How to Choose the Right ₹1 Crore SBI Term Insurance Plan?

• Review the plan features and decide between level cover and increasing cover.
• Select a policy term that usually runs until retirement, typically between 60 and 70 years.
• Choose riders only if they address a specific need.
• Complete the proposal form and pay the first premium.
• Undergo medical tests if required based on your profile.
• The policy is issued after approval of the underwriting.

Why Choose Ditto for Term Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Aaron below love us:

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Ditto’s Take on Who Should Buy ₹1 Crore SBI Term Insurance

SBI Life’s Smart Shield Plus stands out for its brand trust, strong claim performance, and a clean, easy-to-understand structure with life-event-based cover increases. It is a dependable option if you prefer simplicity and long-term reliability over feature-heavy plans.

That said, the plan is relatively basic. Compared to newer private insurers, it misses advanced riders like critical illness and waiver of premium, along with modern features such as instant payout on claim intimation or automatic cover continuation.

A ₹1 crore SBI term plan works well as an entry-level cover for young earners, families with active loans, or self-employed individuals seeking essential protection. But this should not be treated as a lifetime benchmark. Inflation and growing responsibilities can quickly make even a ₹1 crore cover inadequate.

Note: SBI is not a partner insurer of Ditto. The information outlined in this article is sourced directly from the insurer’s website and other publicly available sources.