SBI Term Insurance ₹20 Lakhs

Losing the main earner can put a big financial strain on any family, and term insurance helps protect against that risk. But one of the biggest challenges is not just choosing a plan but figuring out how much cover is actually enough.

In this guide, we focus on SBI Term Insurance ₹20 lakh plans, looking at what this coverage offers, who it works best for, and when it may fall short, so you can decide if it truly fits your needs.

SBI Term Insurance Plans Offering ₹20 lakhs Cover

1. SBI Life – Saral Jeevan Bima:

Saral Jeevan Bima is an IRDAI-standardised term life insurance plan that provides simple and affordable life cover without any savings or investment component. The plan provides a lump-sum death benefit to the nominee if the life assured passes away during the policy term. It does not offer any maturity or survival benefits, meaning you or your family won’t receive any payout if the policyholder survives the term.

2. SBI Life – eShield Insta:

This is a digital-only plan. If you are looking for a SBI term insurance ₹20 lakhs policy that can be bought quickly online with minimal paperwork, eShield Insta is the preferred choice. It has two variants: Plan A (pure term insurance) that pays the sum assured only on death, and Plan B (term insurance with return of premium) that refunds 100% of total premiums paid (excluding taxes) if you survive till maturity. At Ditto, we usually don’t recommend return-of-premium (ROP) plans because their premiums are much higher (about 60-100%) than pure term insurance, and the extra amount you pay delivers no returns over the long term.

Note: SBI Life eShield Insta comes with a fixed 10-year policy term, meaning coverage lasts only for those 10 years and pays a death benefit if the life assured passes away during this period. 

Since it’s a short-term plan, it is usually not suitable as a primary income replacement plan for most people. For example, if you buy this plan at 30, your cover ends at 40, an age when premiums rise and health risks typically increase, leaving you uninsured again.

Premiums for SBI term insurance ₹20 lakhs can vary based on smoking habits and health status. The above are indicative annual premiums for healthy and non-smoking individuals.

Note: If you are comfortable increasing coverage slightly, some offline/basic plans such as LIC New Jeevan Amar allow a minimum sum assured of ₹25 lakh, which may be a better alternative than stopping at ₹20 lakh.

What Are the Benefits of SBI Term Insurance ₹20 lakhs? 

• High Claim Settlement Ratio (CSR): SBI Life has maintained a strong average claim settlement ratio of 98.24% from FY22 to FY25. This shows its consistent track record of settling genuine claims on time.
• Affordable Premiums from SBI: SBI Term Insurance ₹20 lakh plans offer budget-friendly premiums. It is particularly attractive for younger individuals and non-smokers looking for cost-effective life cover.
• Trusted and Well-Established Insurer: Supported by the State Bank of India, the nation’s largest public-sector bank, SBI Life is among the most reliable and widely trusted term insurance providers in India.

For additional insights, you can explore our in-depth review of SBI Term Insurance.

Who Should Choose a ₹20 lakh Term Plan?

• Individuals with few financial obligations or dependents
• Applicants who are unable to secure a higher coverage amount due to income, documents or educational restrictions.
• People in the early phase of their professional journey
• Those choosing an initial policy with the intention to increase cover later

Note: The value of ₹20 lakh in 2026 will not be the same in 2040 due to inflation. While it can serve as a good starting point, this coverage should be reviewed every 3–5 years and adjusted as your income, responsibilities, and life goals evolve.

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:

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

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Ditto’s Take on SBI Term Insurance ₹20 lakhs 

Term insurance is meant to replace your income, pay off loans, fund your children’s education, and cover other future goals. Over time, a ₹20 lakh term policy might fall short, so it’s better to opt for a higher sum assured. If the gap grows, consider upgrading to SBI term insurance ₹50 lakhs or more for total peace of mind. 

Make sure you figure out the right coverage for yourself before buying a plan. You can use our cover calculator to help with that. If you want feature-packed plans from tech-friendly insurers, HDFC Life or Axis Max Life are good options, but SBI Life is also a reliable choice for your future protection.

Disclosure: SBI Life is not a partner insurer of Ditto. All information here comes from the insurer’s website or publicly available sources.