The policy is an individual, non-linked, non-participating, life insurance pure risk premium product. It is neither linked to the stock market nor shares any profit or dividends with the policyholders
NEW DELHI: SBI Life Insurance has launched a new-age protection solution-- 'SBI Life eShield Next' -- an individual, non-linked, non-participating, life insurance pure risk premium product. This means that the policy is neither linked to the stock market nor shares any profit or dividends with the policyholders.
"The policy works by 'levelling up' the required insurance protection, through an increase in sum assured linked to the significant 'level-up milestones in one's life, like getting married, becoming a parent or buying a new house," the insurer said in a statement.
It offers three plan options – level cover, increasing cover and level cover with future-proofing benefit. Each has been crafted to meet the changing needs of consumers, it said. The plan option, once chosen at inception, cannot be changed during the policy term.
Ravi Krishnamurthy, president, SBI Life Insurance said, "Our term insurance should be able to intelligently take care of our needs as we progress through life's important milestones. SBI Life eShield Next, with its three plan options, offers a distinctive customization feature that caters to the evolving needs of the consumer."
Option 1: In the case of Level Cover Benefit, the absolute amount assured stays constant throughout the policy term.
Option 2: For Increasing Cover Benefit, the absolute amount assured on death would increase by 10% p.a. (simple) of the basic sum assured at the end of every 5th policy year, subject to a maximum increase of up to 100% of the basic sum assured.
Option 3: Level Cover with Future-Proofing Benefit allows you to increase your cover as you achieve through life's essential milestones like getting married or becoming a parent or buying a house without undergoing further medical tests.
This facility is available only once during the policy term, provided a house is purchased after the risk commencement date.
It is your discretion whether to exercise any of the sum assured (as mentioned above) increments available under this option on the occurrence of respective events, said the insurer's statement.
The insurer provides a range of flexibilities in premium payment options. You can either pay the premium once, pay regularly, or for a limited period. The limited period could range from 5 years to 25 years and includes the option to pay for a period of policy term minus five years.
Besides, the option of life cover up to 100 years (whole life) or 85 years (other than whole life) is also available.
This option is designed to ensure that in your absence, sufficient coverage is available for your spouse. This is essential because the surviving spouse will have the sole responsibility of the family and hence needs to be insured, the insurer said in the statement.
Death benefit payment mode
You have an option to choose the mode of payment of the death benefit or terminal illness benefit. You can either take a lump sum, monthly instalments or lump sum plus monthly instalments.
"You may consider your personal situation and the nature of liabilities, needs of your dependent family members while making this choice. For example, a lump sum payout would aid the family pay off large debts while the monthly instalments would help make up for the loss of regular income," said Krishnamurthy.
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