What My Dad Taught Me About SBI Term Insurance

Growing up, I thought financial planning was just my dad’s thing—numbers, budgets, and endless talks about “securing the future.” But one rainy evening, as we sat on our balcony with cups of chai, he shared a lesson that changed my perspective forever: the importance of SBI Term Insurance. He wasn’t just talking about any insurance—he was specific about SBI Term Insurance, a product he swore by for its reliability and affordability. That conversation, filled with his wisdom and care, shaped how I view financial security for my own family. Here’s what my dad taught me about SBI Term Insurance, woven with practical insights for anyone considering it.

How Dad Introduced SBI Term Insurance

It started with a story. Dad recounted how, in his 30s, he realized life’s unpredictability after a colleague’s sudden passing left their family struggling. That’s when he researched and chose SBI Term Insurance, specifically the SBI Life eShield Next plan, for its straightforward protection and trusted name. “It’s not just insurance,” he said, “it’s a promise to your family.” He explained that SBI Term Insurance offered him peace of mind, knowing his wife and kids would be financially secure if something happened to him. His passion for the topic wasn’t just about numbers—it was about love, responsibility, and planning for the worst while hoping for the best. That evening, he made me promise to understand SBI Term Insurance before I started my own family.

What Makes SBI Term Insurance Reliable

Dad always emphasized trust when it came to financial decisions, and SBI Term Insurance earned his confidence for several reasons. First, it’s backed by SBI Life Insurance, a joint venture between the State Bank of India and BNP Paribas Cardif, established in 2000 and registered with the Insurance Regulatory and Development Authority of India (IRDAI) since 2001. The government link through SBI gave him assurance of stability—after all, it’s tied to India’s largest public-sector bank. He also pointed out SBI’s impressive claim settlement ratio of 99.20% in FY 2023-24, as reported by Policybazaar, which showed their commitment to paying claims promptly.

“IRDAI regulates SBI Life to ensure transparency,” Dad said, explaining how the authority enforces strict guidelines, like maintaining a solvency ratio of at least 1.5. SBI Life’s solvency ratio of 2.15% in FY 2022-23 proved they had the financial muscle to honor claims. He also appreciated how SBI Term Insurance adheres to IRDAI’s rules, publishing clear sales literature to avoid mis-selling. For Dad, these factors—government backing, high claim settlement, and regulatory compliance—made SBI Term Insurance a name he could rely on without second-guessing.

How My Dad Broke Down the ₹1 Crore Plan

Dad loved breaking down complex things into simple terms, and the SBI Term Insurance ₹1 crore plan was no exception. He used the SBI Life eShield Next as an example, explaining how it offers life cover up to age 100 with flexible options like level or increasing cover. “A ₹1 crore plan is ideal for someone earning ₹10-15 lakh annually,” he said, “because it’s roughly 10-15 times your income.” For an 18-year-old non-smoker with no pre-existing conditions, the premium could be as low as ₹487/month for a 12-year term, though it varies by age and policy duration.

He walked me through eligibility: you need to be at least 18 and no older than 65 for most SBI Term Insurance plans, with some variation depending on the specific product. Dad stressed the importance of choosing the right policy term—ideally until retirement or when major responsibilities like a home loan are cleared. For him, a 30-year term made sense when he was 35, ensuring coverage until his 60s. He also highlighted riders like the Accidental Death Benefit and Accidental Total and Permanent Disability Benefit, which add extra protection for a small premium increase. “Think of riders as seatbelts for your policy,” he said with a grin. His clarity made the ₹1 crore SBI Term Insurance plan feel less like a financial product and more like a shield for our family.

Common Mistakes He Warned Me About

Dad was adamant about avoiding pitfalls with SBI Term Insurance. He’d seen friends make mistakes that could jeopardize their coverage, and he didn’t want me to repeat them. Here’s what he warned me about:

• Underinsuring: Choosing a low sum assured to save on premiums is tempting but risky. Dad advised aiming for a ₹1 crore cover to match rising costs and inflation.
• Ignoring Riders: Skipping riders like accidental death or disability benefits could leave gaps in coverage. He urged me to assess my lifestyle—driving often or working in a high-risk job—and add relevant riders.
• Skipping Medicals: Hiding health issues or avoiding medical checks can lead to claim rejections. Dad emphasized full disclosure during the application process, as SBI Term Insurance requires medicals for high sums like ₹1 crore.
• Missing Premiums: A lapsed policy can disrupt coverage. He recommended setting up auto-debit to ensure timely payments.

His biggest advice? “Read the policy document carefully.” SBI Term Insurance provides a 15-day free-look period to review terms, and he insisted I use it to understand exclusions like death due to high-risk activities or suicide within the first year (where only 80% of premiums are refunded). These lessons stuck with me, making me cautious yet confident.

What I Finally Did Because of Him

Inspired by Dad’s wisdom, I decided to act. At 28, newly married, and starting a career, I felt the weight of responsibility. I researched SBI Term Insurance plans on their official website and Policybazaar, focusing on the eShield Next for its flexibility. I opted for a ₹1 crore cover with a 35-year term, factoring in my plans for a home loan and future kids. The premium, around ₹12,000 annually, fit my budget, especially with tax benefits under Sections 80C and 10(10D). I added the Accidental Death Benefit Rider, remembering Dad’s advice about extra protection.

The application process was smooth—online forms, a medical check-up arranged by SBI at a nearby diagnostic center, and clear communication about my policy details. When I had a question about updating my nominee after marriage, SBI’s customer care (via their toll-free number 1800 267 9090) was quick to help. Dad’s lessons guided every step: I disclosed my medical history fully, chose a realistic sum assured, and set up auto-debit for premiums. Knowing SBI Term Insurance’s claim process—submitting a death certificate, policy number, and ID proof, with quick reviews and settlements—gave me confidence that my family would be supported if the worst happened.

The Lesson That Lingers

Dad’s biggest lesson wasn’t just about buying SBI Term Insurance—it was about love and foresight. He taught me that securing my family’s future isn’t about predicting the worst but preparing for it with care. SBI Term Insurance, with its high claim settlement ratio, government-backed reliability, and affordable plans, became the tool to honor that lesson. I still remember his words: “A policy is only as good as the trust behind it.” Five years into my policy, I’m grateful for his guidance.

If you’re reading this, I urge you to evaluate SBI Term Insurance for your family. Visit their website or call their helpline to explore plans like eShield Next. Check the fine print, assess your needs, and don’t shy away from asking questions. Like my dad taught me, it’s not just about signing up—it’s about building a legacy of security for those you love.

Disclaimer: This article reflects my personal experience with SBI Term Insurance as of July 2025. Consult a financial advisor and review policy details before purchasing.