Compare SBI Life eIncome Shield Plan

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SBI Life eIncome Shield Plan

SBI Life eIncome Shield plan is a term insurance plan which pays regular monthly benefits throughout the remaining duration of the plan if the life insured faces premature death. Moreover, the plan also offers the policyholder to choose the type of monthly income he wants his family to receive – fixed or increasing.

Key features of the plan

  • The plan pays monthly incomes if the life insured dies during the plan.
  • There are four types of monthly incomes available with the plan. One is a fixed level income while the other three are increasing incomes which increase at different rates.
  • The plan is available online and can be easily bought
  • Attractive premium discounts are allowed for choosing a higher level of Sum Assured.

How does the plan work?

Step 1 – the policyholder chooses the monthly income amount and the type of income he wants the family to receive in case of death. There are four options to receive the monthly incomes which are as follows:

  • Option A where the chosen monthly income remains fixed throughout the payout period
  • Option B where the chosen monthly income increases by 3% simple rate of interest every policy year
  • Option C where the chosen monthly income increases by 5% simple rate of interest every policy year
  • Option D where the chosen monthly income increases by 10% simple rate of interest every policy year

Step 2 – then the policyholder chooses the term and the premium paying frequency.

Step 3- in case of death within the term of the plan, 12 times the monthly income in the year of death is paid in lump sum. Thereafter the incomes are paid as per the benefit option chosen by the policyholder.

Step 4 – If the plan matures, no benefit is paid.

Example

Ashish, a non-smoker male aged 35 years buys eIncome Shield Plan for 25 years. He chooses a monthly income of Rs.50, 000 and pays the premiums annually.

Option 1 – If he chooses Option A, the monthly income of Rs.50, 000 would be paid to his nominee in case of his death. The income would be paid for the remainder of the plan tenure for a minimum of 48 months.

Option 2 – If Ashish chooses Option B, the monthly income in the first year would be Rs.50, 000. Second year would be Rs.51, 500, and so on payable for the remainder of the plan tenure for a minimum of 48 months.

Option 3 – If Option C is chosen the monthly income would increase to Rs.52, 500 in the second year, Rs.55, 000 in the third year and so on.

Option 4 – For Option D, the monthly income would increase by Rs.5000 every policy year.

Option 5 – in case the plan matures, Ashish would receive no maturity benefit.

Plan benefits

Plan benefits

  • Death benefit – the death benefit is paid in case of death of the life insured during the plan tenure. A lump sum benefit of 12 times the monthly income in the year of death is paid immediately. Thereafter, the monthly incomes are paid as per the benefit option selected by the policyholder. The income would be paid for the remaining plan term or 48 months whichever is higher.
  • Maturity Benefit – there is no maturity benefit payable under the plan

Eligibility Criteria

  Minimum Maximum
Age at entry (in completed years) 18 years 50 years
Age at maturity (in completed years) NA 60 years
Term of the plan 10 years 35 years
Premium paying options Regular pay
Premium Paying term Equal to the plan tenure
Monthly Income Rs.25,000 No limit

What is not covered by the plan?
If the life insured dies due to suicide within one year of plan commencement or within one year of revival of a lapsed policy, 80% of the premiums paid are refunded.

Premium Illustration
Below are the sample rates of premium payable by males and females for different monthly income options and different lifestyle habits. The age of the life insured is 30 years and the term of the plan is also 30 years. The monthly income chosen is Rs.30, 000 and premiums are paid annually.

SBI-Life-eIncome-Shield-Plan

FAQs

  • What is the available discount for high Sum Assured levels?
  • If the Sum Assured is Rs.1 crore to Rs.2 crores, 16% discount in premiums is allowed. If the Sum Assured is Rs.2 crores and above the discount is 20% of the premium.

  • What are the premium payment frequencies allowed in the plan?
  • Premiums can be paid either monthly or annually.

  • How is the monthly premium calculated?
  • The monthly premium is expressed as 8.9% of the annual premium and if the policyholder chooses the monthly mode of premium payment, 3 months’ premiums have to be paid in advance.

  • Can monthly incomes be received in lump sum?
  • Yes, the nominee or the beneficiary can choose to receive the outstanding monthly incomes in a lump sum amount. In that case, the aggregate of the monthly incomes payable discounted @ 5% per annum would be payable along with the death benefit which is 12 times the monthly incomes in the year of death.

  • What are the tax benefits available under the plan?
  • Premiums paid for the plan qualify for tax exemption under Section 80C. The maximum limit of exemption under this section is limited to Rs.1.5 lakhs. Monthly incomes received and also the lump sum death benefit received is also tax-free in the hands of the nominee or beneficiary. Section 10(10D) of the Income Tax Act exempts the death benefit and subsequent monthly incomes without any upper limit.

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