SBI Term Insurance: Should You Go for It in 2025?

SBI Term Insurance: Is it worth buying?

SBI Life Term Insurance is a trusted choice for comprehensive life protection. It offers a blend of reliability, affordability, and flexibility with a strong claim settlement ratio of 98.24%. Regarding term insurance policies, the insurer offers versatile plan options, such as SBI Life Smart Shield, which caters to diverse consumer needs through flexible coverage structures and rider benefits.

Introduction

With numerous insurers competing in the market, finding the right term insurance can feel like searching for a needle in a haystack. Everyone promises the “best protection,” but when it’s your family’s future on the line, you cannot take chances.

One insurer that has helped numerous buyers get the coverage they need is SBI Life Insurance. Operating since the year 2000, it has established a solid reputation for reliability, with impressive performance metrics such as:

• Claim Settlement Ratio: 98.24% (avg. 2022-25)
• Amount Settlement Ratio: 95.2% (avg. 2021-24)
• Complaint Volume: 5.62 per 10,000 claims (avg. 2022-25)

But how good are SBI Life’s term plan offerings? How do they compare to term policies from other insurers? And should you opt for them? Let’s answer these questions in this blog. 

Are you thinking of buying term insurance? Chat with our IRDAI-certified experts to compare SBI Life with top insurers to make an informed decision. Book a free consultation call now!

SBI Term Insurance Plans

SBI Life offers multiple term insurance plans to meet different protection needs. Among these, SBI Life Smart Shield stands out as the flagship offering. 

It comes in two main variants: Smart Shield Plus and Smart Shield Premier.

SBI Life Smart Shield Plus

1) Key Features

• Pure protection plan with no maturity benefits.
• The optional “Better Half Benefit” continues partial coverage for the spouse after the insured’s death.

2) Benefit Options

• Level Cover: The nominee receives the fixed Sum Assured (SA) upon the policyholder’s death. 
• Increasing Cover: The SA increases by 5% every year starting from the first policy anniversary (up to a maximum of 200%) while the premiums stay the same. 
• Level Cover with Future Proofing Benefit: Allows you to increase the cover during major life events (such as marriage: up to 50% of the base SA and a maximum of ₹50 lakhs, birth/adoption of 1st/2nd child: 25% each and a maximum of ₹25 lakhs, home purchase: once during the term and up to ₹50 lakhs or the loan amount, depending on whichever is lower)

3) Eligibility

• Entry age: 18 to 40/60/65 years
• Maximum maturity age: up to 79 years (or 100 for whole life)
• Policy term: 5 to 79 minus entry age years

4) Sum Assured

• Minimum: ₹25 lakhs
• Maximum: No limit (subject to underwriting)

5) Premium Payment Modes

• Regular, Limited (10,15,20,25 years), or Single Pay
• Payment frequency: Monthly/ Quarterly/ Half-yearly/ Annual

6) Available Riders

• Accidental Death Benefit Rider
• Accidental Partial Permanent Disability Rider

SBI Life Smart Shield Premier

1) Key Features

High-value term plan designed for significant coverage needs. It is suitable for high-income individuals or those with substantial financial liabilities.

2) Benefit Options

• Level Cover: Nominee receives the fixed SA upon the policyholder’s death. 
• Increasing Cover: The SA increases by 10%, every 5th policy year, up to a maximum of 100% and stops once the life assured reaches age 71. 

3) Eligibility 

• Entry age: 18 to 60 years
• Maximum maturity age: 85 years

4) Sum Assured

• Minimum: ₹2 crores
• Maximum: No upper limit (subject to underwriting)

5) Premium Payment Modes

• Monthly/ Half-yearly/ Annual

6) Available Riders

• Accidental Death Benefit Rider
• Accidental Partial Permanent Disability Rider

Note: The accidental death benefit add-on provides an additional payout over and above the base sum assured if the policyholder dies in an accident. On the other hand, the accidental partial and permanent disability rider provides a financial payout if the policyholder suffers an accidental and permanent disability due to an accident. 

Drawback: Smart Shield does not include a critical illness rider or a waiver of premium feature, which could be a dealbreaker for those seeking comprehensive coverage solutions.

Now that you have a brief overview of SBI Life’s plan offerings, let us look at the premiums.

Premium Comparison of SBI Life with Other Top Insurers

For the comparison below, we’re comparing SBI Life’s flagship offering with popular plans in the market. Let us consider the example of non-smoking, no PED profiles, living in Tier 1 cities, covered for an SA of ₹2 crore till the age of 65.

Ditto’s Take: After a cost-benefit analysis, Smart Term Plan Plus and Click2Protect Supreme are more comprehensive plans that offer better coverage as compared to Smart Shield.

For example, both plans have in-built features such as instant payout upon claim intimation, health management services, a special exit feature, terminal illness cover, etc. Additionally, both offer a variety of add-ons for plan customization to suit individual needs. 

How to Buy SBI Term Insurance?

You can buy SBI Term insurance both online and offline.

• Online: Through the official SBI Life website
• Offline: By visiting the nearest SBI Life branch or through SBI bank representatives.

Documents Required to Buy SBI Term Insurance

To apply, you’ll need the following:

• Proof of Identity: PAN Card, Voter ID, Passport, or Aadhaar
• Proof of Age: PAN Card, Aadhaar Card
• Proof of Address: Passport, Aadhaar, Rent Agreement, or Utility Bill
• Income Proof: Salary Slips, ITR, or Form 16
• Latest Photograph

You can also check out our blog on Documents Required for Term Insurance for more details. 

Claim Settlement Process of SBI Term Insurance

You can file the claim:

• Online: Provide your policy number, date of birth, and claim time. 
• By Post: You can send the claim form along with the supporting documents to their office in Navi Mumbai.
• At the SBI Life Branch: You can submit the claim documents at your nearest SBI Life branch. 
• Via Email: For death claims, you can write an email to claims@sbilife.co.in

Documents Required for Filing a Claim for SBI Term Insurance?

• Mandatory Documents
  You require the following documents: claim form, original policy document (not required if you have an e-insurance account, death certificate, claimant’s address proof, claimant’s photo ID proof, direct credit mandate form (duly filled out form for electronic fund transfer), and bank proof. 
• Additional Documents (Case-Specific)
  Depending on the nature of the claim, SBI Life may request additional supporting documents:
  • Medical Attendant’s Certificate: Details from the doctor who treated the life assured before death.
  • Hospital Treatment Certificate: Records of medical treatment received before death.
  • Employer’s Certificate: if death occurred during employment 
  • FIR/Punchnama/Post-Mortem Report: Necessary in case of accidental or unnatural death.
  • Inquest Report/Police Final Report/Chemical Analysis Report/Magistrate’s Verdict: For cases involving investigation or suspicious circumstances.

Ditto’s Pro Tip: Submitting complete and accurate documentation at the time of claim initiation can significantly reduce settlement time and help avoid unnecessary delays.

Inclusions and Exclusions of SBI Term Insurance

SBI term insurance covers all kinds of deaths except certain situations, such as suicide within the first 12 months of the policy, deaths caused by the nominee/beneficiary, or those occurring while engaging in criminal acts, hazardous sports, or under the influence of alcohol or drugs, and due to non-disclosure of information. You can read more about Deaths Not Covered in Term Insurance in our detailed guide.

How Can I Check The Policy Status for SBI Term Insurance?

• Via Portal
  Log in using your registered ID and navigate to ‘Policy Details’ to check premium due dates, coverage, and claim status.
• Via SMS
  You can send an SMS from your registered mobile number to 56161.

What Is The Policy Renewal Process for SBI Term Insurance?

There are easy ways to pay your renewal premiums:

• Through the SBI Life Website
• Through the SBI Life Mobile application
• Through the SBI Life branches

You can also check out the details on their official website. 

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 Vijay below love us:

• No-Spam & No Salesmen
• Rated 4.9/5 on Google Reviews by 15,000+ happy customers
• Backed by Zerodha
• 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call now!

Conclusion

SBI Life Term Insurance remains a dependable and affordable option for comprehensive life protection.

However, it’s also worth noting that other insurers, such as Axis Life (CSR 99.62%) and HDFC Life (CSR 99.55%), currently outperform SBI Life in certain metrics, including amount settlement ratios and customer complaint volumes. Additionally, some competing plans offer more advanced features or riders, giving policyholders extra flexibility and value.

So before finalizing your choice, it’s a good idea to compare it with other top insurers to ensure you’re getting the best mix of coverage, price, and benefits for your needs. 

Frequently Asked Questions