What I Learned After 5 Years with SBI Term Insurance

Five years ago, I sat down with a cup of coffee and a nagging sense of responsibility. My family was growing, and with a new job, a home loan, and a toddler running around, I knew I needed a financial safety net. That’s when I decided to buy SBI Term Insurance. After half a decade with the policy, I’ve learned a lot—about the product, the process, and what it means to secure my family’s future. Here’s my story, with insights and tips for anyone considering SBI Term Insurance today.

Why I Chose SBI Term Insurance

Back in 2020, I was new to the world of insurance. The options were overwhelming—endowment plans, ULIPs, term plans, you name it. I wanted something simple, affordable, and from a trusted name. SBI Life Insurance, with its reputation as one of India’s leading insurers, caught my attention. Their SBI Term Insurance plans, particularly the eShield Next, stood out for their flexibility and comprehensive coverage. I was drawn to the promise of life cover up to 100 years and the option to customize with riders like accidental death benefits. Plus, the premiums were budget-friendly for a middle-class family like mine. After comparing a few plans on platforms like Policybazaar, I felt confident that SBI Term Insurance was the right fit. The decision wasn’t just about price—it was about peace of mind from a brand I could trust.

The Experience: Premium Payments, Customer Service, and Renewals

Paying premiums for SBI Term Insurance has been a smooth ride. I opted for an annual payment mode, which suited my salary cycle. The online payment portal on the SBI Life website is straightforward—you log in, enter your policy number, and pay via net banking or card. I also set up auto-debit with my bank, which ensured I never missed a due date. One time, I had an issue with a payment not reflecting immediately. I reached out to their customer care via the toll-free number (1800 267 9090), and to my surprise, the issue was resolved within 24 hours. The representative was polite and walked me through the process, which left me impressed.

Renewals have been equally hassle-free. SBI Term Insurance allows you to renew online without needing to visit a branch. I receive timely reminders via email and SMS, which is a lifesaver for someone like me who juggles a busy schedule. Over the years, I’ve updated my contact details and nominee information through their Smart Care portal. The process is intuitive, though I wish the interface was a bit more modern. My only minor gripe is that premium receipts sometimes take a day or two to arrive in my inbox, but it’s never been a dealbreaker.

Customer service, overall, has been a strong point. I’ve interacted with their team via email, phone, and even WhatsApp (after registering with their missed call service at +919029006575). Each time, they’ve been prompt and professional. For instance, when I had a query about adding a rider in my third year, a representative patiently explained the options and costs. This responsiveness has made me feel valued as a policyholder.

Clarity on Exclusions and Riders

When I bought my SBI Term Insurance policy, I was a bit naive about exclusions and riders. The agent I spoke to was upfront about what the policy didn’t cover—things like death due to high-risk activities (think skydiving or mountaineering), self-inflicted injuries, or criminal activities. These exclusions are standard across term plans, but I appreciated that SBI’s sales brochure spelled them out clearly. Reading through the fine print helped me avoid surprises later.

Riders were a game-changer for me. I added the Accidental Death Benefit Rider and the Accidental Total and Permanent Disability Rider to my eShield Next plan. These cost a bit extra but enhanced my coverage significantly. For example, the accidental death rider ensures my family gets double the sum assured if I pass away due to an accident. However, I learned that riders like critical illness aren’t available with all SBI Term Insurance plans, which was a slight disappointment. If you’re considering riders, my tip is to assess your lifestyle and risks early on—don’t just go for the cheapest option.

Transparency and Medical Checks

One of my biggest concerns before buying SBI Term Insurance was the medical check-up process. I’d heard horror stories about insurers rejecting claims due to undisclosed health issues. Thankfully, SBI was transparent from the start. They required a medical examination since my sum assured was above ₹50 lakh. The process was organized—SBI arranged for a diagnostic center near my home in Bangalore, and the tests (blood work, ECG, etc.) were completed in a single morning. The reports were sent directly to the insurer, and I didn’t have to chase anyone.

Over the years, I’ve updated my health details twice—once after a minor surgery and once when I started medication for hypertension. Each time, I submitted a written request through the Smart Care portal, and the updates were processed without fuss. SBI’s transparency in explaining how these updates might affect premiums or claims gave me confidence. They also have a 15-day free-look period, which I didn’t need but found reassuring.

Value for Money After 5 Years

Looking back, I believe SBI Term Insurance offers solid value for money. My annual premium for a ₹1 crore cover is around ₹12,000, which feels reasonable for the peace of mind it provides. The high claim settlement ratio of 99.20% in FY 2023-24 (as per Policybazaar) reinforces my trust in SBI’s reliability. The flexibility to choose between level cover, increasing cover, or future-proofing benefits has kept the policy relevant as my responsibilities have grown.

That said, there are drawbacks. Unlike some newer insurers, SBI Term Insurance doesn’t offer a critical illness rider with every plan, and there’s no discount for buying online. If you’re looking for a return-of-premium plan, options like Saral Swadhan Supreme exist, but they come at a higher cost. For me, the pure protection of eShield Next was enough, but your needs might differ.

Advice for Those Considering SBI Term Insurance

If you’re thinking about buying SBI Term Insurance today, here’s what I’d suggest based on my experience:

• Assess your needs: Choose a sum assured that’s 10–15 times your annual income. For example, if you earn ₹10 lakh a year, aim for ₹1–1.5 crore cover.
• Understand riders: Add riders like accidental death or disability if they suit your lifestyle, but don’t overpay for ones you don’t need.
• Go digital: Use SBI’s online portal or platforms like Policybazaar to compare plans and pay premiums. It’s faster and often cheaper.
• Read the fine print: Exclusions matter. Make sure you’re clear on what’s not covered to avoid claim disputes later.
• Stay updated: Inform SBI about any health or lifestyle changes promptly to keep your policy valid.

Final Thoughts

Five years with SBI Term Insurance has taught me that insurance isn’t just about signing a contract—it’s about building a safety net you can trust. SBI Life’s reliability, responsive customer service, and transparent processes have made this journey worthwhile. While no plan is perfect, the affordability and flexibility of SBI Term Insurance make it a strong contender for anyone looking to secure their family’s future. If you’re on the fence, take the time to explore their plans, ask questions, and choose what aligns with your goals. For me, it’s been a decision I haven’t regretted.

Disclaimer: The information shared is based on my personal experience and publicly available data. Always consult a financial advisor before making insurance decisions.