SBI Life Insurance : With SBI Life E-Shield Next Term Insurance, you have the freedom to increase your sum assured now.
Over time, when you have to provide more protection to your family, you can increase the sum insured from 25 lakhs to 50 lakhs.
SBI Life Insurance has withdrawn its existing term policy – eShield – and replaced it with eShield Next. Many additional features and options have been added to the new policy. This policy does not offer any return or maturity amount, but pays out the Sum Assured to the dependents in case of death of the policyholder.
Term insurance policies ensure financial protection for families at low premiums. Over the years, Life Insurer has introduced a slew of features in this product category, including deferred claim payment and increasing the sum insured.
The difference in the new policy is that in the earlier eShield cover, there was only one option with Unchanged Sum Assured. Now, eShield Next not only offers this option (which it calls Level Cover), it also gives you the option to increase your Sum Assured as you get older.
For Level Cover, regular premium paying option, a 35 year old non smoker woman who buys a cover of Rs 1 crore with a policy term of 20 years will have to pay an annual premium of Rs 10,586 plus taxes.
Such ‘Enhanced Sum Assured Level Cover with Future Proofing’ benefit allows policyholders to increase their life insurance cover in case of several significant incidents. For example, when you get married, you can increase your sum insured by 50 per cent, up to a maximum of Rs 50 lakh. Similarly, on the birth of your first child, the product will allow you to increase your cover by 25 per cent, up to a maximum of Rs 25 lakh.
What is the biggest advantage Its main benefit is that while you will have to pay a higher premium for a bigger cover, you will not have to go through medical undertaking. Often, people are unable to envision their future needs, and hence their insurance purchases are not a factor either.
A person who is not married and buying a term plan may not have imagined that he wants to move to a new house in future and is dependent on debt to meet the need. Needless to say, when such liabilities come to the fore, their insurance cover will become inadequate.
If you want to increase your Sum Assured at fixed intervals, you can opt for the option ‘Increasing Sum Assured’. Here, your Sum Assured increases by 10% every fifth policy year.
Life Cover for Spouse
Under the ‘better-half’ benefit option, the non-receiving spouse gets life cover after the death of the policyholder. The product also offers the facility of a limited premium paying term. In which you can pay the premium for five years, but the cover can continue for 20 years.
According to the company, the Limited Premium Payment Term feature has been designed keeping in mind the needs of millennials. Under the product, the limited premium payment terms range from less than five years to 25 years. In case of whole life option, the policy can remain in force till the policy holder attains the age of 100 years.
You can also choose the tiered claim payment option. The claim will be assigned to your dependents over time, rather than in a lump sum. “The subscriber can choose whether the death benefit should be paid in lump sum or as monthly installments or a combination of both.
The lump sum payment will help the family repay large debts, while the monthly installments will help offset the loss of regular income. If the dependents are not financially savvy and are not able to manage a large corpus, then monthly installments would be a better option for such clients.