SBI Term Insurance Plan

SBI Life Insurance Company Limited was incorporated in 2000 and began operations in 2001. It is a joint venture between the State Bank of India and BNP Paribas Cardif. Backed by SBI’s trusted brand and vast distribution network, the company offers a wide range of products across protection, savings, child and retirement plans, money-back and group insurance solutions.

At Ditto, we help thousands of people make informed insurance decisions every day, giving them a clear understanding of what truly matters when choosing an insurer. This guide explains the term insurance plans offered by SBI Life Term Insurance and highlights their key features to help you evaluate them better.

Note: For the ASR values, we have considered the average of FY 21-24, as the latest FY 24-25 metrics haven’t been released yet.

Key Insights:

• CSR rose steadily from 97.26% (FY 2023)  to 98.83% (FY 2025), averaging 98.24%, showing consistent reliability in settling claims. 
• ASR stayed above 94.07%(industry mean), indicating most of the claim amount was actually paid, not just approved. 
• Business volumes averaged ₹34,468 crore, confirming SBI Life’s position as a high-capacity insurer.
• Average annual payout of ₹2,041 crore reflects both scale and active claim servicing.
• Complaints declined to 5.3 per 10,000 claims in FY 2024-2025, signalling an improving customer experience.
• The insurer has maintained its solvency ratio around 2x, well above the regulatory requirements of 1.5x, indicating strong financial stability.

Take Note: At Ditto, we rely on a 3-year average of key operational metrics to smooth out short-term fluctuations. This is also done to avoid any kind of overreactions subjected to one-off events, seasonal swings, or temporary market disruptions.

SBI Term Insurance Plan: List 

1) SBI Life Smart Shield Plus

SBI Life Smart Shield Plus is a non-linked, pure protection term insurance plan. It offers three distinct plan options. The policy is a variant of the SBI Life Smart Shield plan.

Plan Options:

• Level Cover: Pays a fixed sum assured to the nominee if the policyholder dies during the policy term.
• Increasing Cover: The sum assured rises by 5% (simple rate) every year from the first policy anniversary, up to 200%, while the premium stays the same.
• Level Cover with Future Proofing Benefit: Lets you increase cover at key life events like marriage, childbirth/adoption, or home purchase, within specified limits.

Optional benefits:

• Accidental Death Benefit (ADB): Pays an additional sum assured if death occurs due to an accident.
• Accidental Partial Permanent Disability Benefit (APPD): Provides a payout if an accident causes permanent partial disability, as defined in the policy.
• Better Half Benefit: On the life assured’s death, the spouse receives life cover without paying premiums, valid until age 60 or the remaining policy term, whichever is earlier.

Note: The listed premiums are for a non-smoker male profile, with a sum assured of ₹2 crore (Coverage till age 70, without first-year discounts).

Key Insight: SBI term plans are usually cheaper because SBI Life Insurance Company Limited focuses on simple, no-frills protection. In contrast, HDFC Life Click 2 Protect Supreme Plus and Axis Max Smart Term Plan Plus offer advanced features like premium breaks and zero-cost options, which raise premiums.

2) SBI Life Smart Shield Premier

Smart Shield Premier (another variant of Smart Shield) is designed to deliver reliable, customizable life cover for different life stages and financial goals.

Plan Options: 

• Level Cover: Pays the fixed sum assured chosen at purchase to the nominee if the policyholder dies during the policy term.
• Increasing Cover: The sum assured rises by 10% every 5th policy year, up to a maximum increase of 100%, and stops once the life assured reaches age 71.
• Optional Benefits: You can choose from the ADB or APPD rider, similar to the Smart Shield plus policy.

Note: The listed premiums are for a non-smoker profile, with a sum assured of ₹2 crore (Coverage till age 70, without first-year discounts).

3) SBI Life eShield Insta

The policy offers two options: Plan A (Pure Term Insurance) and Plan B (Term Insurance with Return of Premium, which refunds 100% of the total premium paid on survival till maturity, as per policy terms).

However, even though eShield Insta does offer a Return of Premium option,  it provides relatively lower sum assured limits, shorter policy terms (10 years), and does not include any in-built benefits or optional riders, making it less comprehensive than many newer term plans.

Note: Total Premiums Paid means the total of all the premiums paid under the base product, excluding any extra premiums and taxes, if collected explicitly.

Note: Besides the above-listed plans, SBI Life offers plans like Saral Swadhan Supreme and Smart Swadhan with a return of premium (ROP) option. 

At Ditto, we do not recommend opting for ROP options (typically 80–100% higher than regular term plans) while purchasing a term policy, as it does not serve the purpose of pure protection for your family. It is more of a savings or investment product. 

Besides, if you outlive the policy, only the base premiums are returned, not the additional rider premiums or any underwriting fees.

Benefits and Drawbacks of the SBI Term Insurance Plan

Benefits of the SBI Term Insurance Plan

• High Claim Settlement Ratio: With a 3-year average CSR of 98.24%, SBI Life shows a strong track record of honoring claims. This ensures timely financial support for families.
• Flexible Coverage & Riders: Offers level, increasing, and future-proofing cover options, with riders like accidental death and disability for added protection.
• Affordable Premiums: Provides high coverage at competitive premiums, with customizable sum assured and policy terms to suit different financial goals.
• Easy Online Management: Policies can be bought, renewed, and managed online, including premium tracking and personal detail updates.

Drawbacks of the SBI Term Insurance Plan

• Some insurers outperform SBI Life on key claim metrics. For example, Axis Max Life Insurance (99.71%) and HDFC Life Insurance (98.93%) recorded higher CSR  over FY 2022 to FY 2025, indicating comparatively stronger claims performance.
• SBI term plans lack modern-day features like health management benefits and riders such as critical illness.

How To Buy SBI Term Insurance Plan? (Online and Offline)

Online (via official SBI Life website)

• Visit the official SBI Life website and choose a term insurance plan.
• Enter your personal, income, and health details to get a premium quote.
• Complete KYC, make the payment, and submit the application online.

Offline (via bank branch or SBI bank representatives)

• Visit the nearest SBI Life branch or contact an SBI bank representative.
• Share your documents and fill out the proposal form with their help.
• Pay the premium and complete medical or verification steps, if required.

Note: As per IRDAI rules, if the policyholder dies by suicide within the first year of buying or reviving the policy, the insurer will reject the claim and refund around 80% of the total premiums.

Why Choose Ditto for Term Insurance?

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You can book a FREE consultation. Slots are running out, so make sure you book a call now or chat on WhatsApp with our expert IRDAI-certified advisors.

Ditto’s Take on SBI Term Insurance Plan 

SBI Life has maintained a high CSR year after year with relatively low complaint volumes. It also offers a wide range of simple, easy-to-understand plans, including return-of-premium options. 

However, it can feel slightly dated compared to newer term plans like Axis Max Smart Term Plan Plus, which include features like instant payouts upon claim intimation or automatic cover continuance, and riders such as a waiver of premium. For some buyers, this makes the premium seem less aligned with the range of features offered.

If you are looking for a term plan from insurers with established track records and affordable riders, we recommend comprehensive plans, which align with your long-term goals. Explore more about how our experts evaluate term plans through Ditto’s cut.

Note: Ditto is not a partner of SBI Life Insurance. All information in this article is based on details available on SBI Life’s official website and other publicly available sources.