SBI Life Term Insurance: Full Guide

SBI Life Insurance is effectively a subsidiary of State Bank of India, which holds approximately 55.4% of the company. The insurer was originally a 74:26 joint venture with BNP Paribas Cardif, but the French insurer has progressively reduced its stake since 2019 and now holds a negligible position. For term insurance buyers, SBI Life’s most significant advantage is distribution: access to more than 41,000 SBI partner branches across India gives the insurer a reach into Tier 2, Tier 3, and rural markets that no private-sector competitor can match.

The insurer’s term portfolio spans five pure-term plans and several return-of-premium variants. Its FY 2024-25 Claim Settlement Ratio was 98.83% (IRDAI Handbook on Indian Insurance Statistics) — the lowest of the four private insurers reviewed in this series, but still above the industry average. This guide covers all active plans, the verified financial data, what SBI Life does well, where its limitations lie, and which buyers are most likely to benefit from its term insurance products.

At a Glance

• 98.83% Claim Settlement Ratio for FY 2024-25 (IRDAI Handbook figure; company-reported figure is 99.4% on a different base)
• 1.91× solvency ratio as of December 2025, well above the IRDAI minimum of 1.50×
• 41,000+ SBI partner branches, the widest bancassurance distribution network in India
• 80.2 million lives covered in-force, one of the largest life insurer footprints in the country
• Promoted by State Bank of India (~55.4%); listed on BSE and NSE

Sources: IRDAI Handbook on Indian Insurance Statistics FY 2024-25, SBI Life Integrated Annual Report FY 2024-25, SBI Life About Us page

Note on the CSR figures: Two different claim settlement figures appear in public sources for SBI Life FY 2024-25. The IRDAI Handbook figure (98.83%) covers all individual life insurance death claims by number. SBI Life’s own annual report states 99.4%, computed on a slightly different base (includes group death claims). For cross-insurer comparisons, the IRDAI Handbook figure (98.83%) is the standard benchmark and is what appears in the infographic above.

Active Term Plans

SBI Life’s protection portfolio covers five pure-term plans, each positioned for a different buyer profile, plus a set of return-of-premium plans for buyers who want premium refunds on survival. The flagship online plan is eShield Next.

Pure-Term Plans

Return-of-Premium Plans (TROP)

SBI Life also offers several return-of-premium variants: eShield Insta (Plan B returns 100% of premiums at maturity), Smart Swadhan Supreme, Smart Swadhan Neo, and Saral Swadhan Supreme. If you are evaluating a TROP plan, compare the total premium outflow against a pure-term plan plus an investment — in most scenarios, pure-term delivers better financial outcomes for the same cover amount.

Claim Settlement Ratio: Trend

Source: IRDAI Handbook on Indian Insurance Statistics; cross-referenced via Ditto (joinditto.in). SBI Life’s company-reported CSR for FY 2024-25 (from its Integrated Annual Report) is 99.4%, computed on a broader base that includes group death claims.

The FY 2020-21 dip to 93.09% was the most significant in recent history, coinciding with the pandemic period, when claim volumes across the industry surged sharply. SBI Life recovered steadily: 97.05% in FY 2021-22, 97.26% in FY 2022-23, 98.62% in FY 2023-24, and 98.83% in FY 2024-25. The three-year average (FY 2022-25: 98.24%) remains below HDFC Life, ICICI Prudential, and Axis Max Life over the same period.

Where SBI Life earns its money: product mix

SBI Life is the most ULIP-heavy among major private insurers. In 9M FY26, ULIPs made up 62% of total APE (Rs 114.3 billion out of Rs 185.2 billion). Non-par savings followed at 17%, protection at 9%, and par at 7%.

Protection splits into individual (3% of APE, Rs 6.4 billion) and group (6%, Rs 10.2 billion). Individual protection APE grew 21% year-on-year, but its share of total APE has been falling since FY23. Group protection is picking up the slack.

Source: SBI Life 9M FY26 Investor Presentation, p34

The par revival stands out: par APE more than doubled year-on-year, going against the industry trend away from traditional products. SBI Life’s massive bancassurance network (27,150+ SBI branches) gives it unmatched reach for selling traditional plans to conservative buyers.

Strengths

• Unmatched bancassurance reach: 41,000+ SBI partner branches mean SBI Life is reachable in cities, towns, and villages where no other private insurer has a physical presence. For buyers in Tier 3 cities or rural areas who want face-to-face assistance, this is a structural advantage.
• Better Half Benefit (eShield Next, Smart Shield Plus): The insured’s spouse can be added to the same policy, a feature that reduces the need for and cost of a separate term plan for the partner.
• Future Proofing Benefit: Allows sum assured increases at marriage, childbirth, and home purchase without fresh medical underwriting. Available on eShield Next and Smart Shield Plus.
• LifeStage Rebalancing (Poorna Suraksha): The CI sum assured increases annually as the policyholder ages (and CI risk rises), while the life cover decreases by an equal amount, keeping total SA constant. This is an unusual product design that makes sense for buyers who want CI cover to grow with age without paying separately for it.
• Whole life option (to age 100): Available on eShield Next and Smart Shield Plus, comparable to HDFC Life and ICICI Prudential’s whole-life options.
• Scale and stability: With 80.2 million in-force lives and an AUM of ₹4.48 trillion (FY25), SBI Life is one of the largest life insurers in India. The SBI promoter stake (~55.4%) provides implicit state-backing that some buyers factor into their trust assessment.

Watch-Outs

• CSR (98.83%) is the lowest of the four private insurers reviewed: While above the industry average, it lags HDFC Life (99.68%), ICICI Prudential (99.34%), and Axis Max Life (99.70%) for FY 2024-25. The five-year trend also includes a significant dip to 93.09% in FY 2020-21 (pandemic impact). The recovery since has been steady and consistent. This is worth considering alongside other factors.
• TROP plans are prominently marketed: SBI Life offers several return-of-premium variants. Buyers should compare the economics of TROP vs a pure-term plan before selecting. In most scenarios, a TROP plan costs meaningfully more in premium for the same cover; the “premium return” rarely justifies the higher outflow.
• BNP Paribas Cardif has effectively exited: Despite historical marketing of SBI Life as an SBI-BNP Paribas joint venture, BNP Paribas Cardif’s stake is now negligible (below 0.5%). The company is effectively SBI-run. This context may matter to buyers who associated the JV with French-insurer governance practices.

Who SBI Life Term Insurance Suits

• Buyers in smaller cities, towns, and rural areas: The 41,000+ SBI branch network makes SBI Life the most accessible insurer outside metro areas. If you want to buy, service, or claim with in-person assistance, no private insurer beats this reach.
• SBI account holders: Existing SBI customers can purchase and manage SBI Life policies through their bank relationship, reducing friction and often enabling easier premium payment.
• Buyers who want spousal coverage on a single policy: The Better Half Benefit on eShield Next and Smart Shield Plus removes the need for a separate term plan for a spouse.
• Buyers concerned about rising CI risk with age: Poorna Suraksha’s LifeStage Rebalancing (where CI cover increases as you age) is a distinctive product for buyers who want CI protection to grow over time without managing two separate plans.

How This Decision Plays Out: An Illustrative Scenario

The following is a fictional scenario to illustrate how a real buyer might weigh these factors. Names, amounts, and outcomes are illustrative only.

Mohan is 38, works as a branch manager at a cooperative bank in Nashik, and is evaluating term insurance for the first time. He wants ₹1 crore cover and wants to be able to manage the policy at a bank branch close to home. His wife is 35 and earns a modest income; she has no separate term cover.

When he compares options, he notices that SBI Life eShield Next allows him to add his wife as an insured under the same policy through the Better Half Benefit. He also notices that Future Proofing allows sum assured increases at life events (they are planning to buy a house within the next three years) without going through fresh underwriting. He is comfortable with SBI Life’s CSR of 98.83% and values the SBI brand trust. He purchases eShield Next with the Level Cover option, adds his wife through Better Half Benefit, and selects a 25-year policy term.

This scenario is not a recommendation. Mohan’s outcome depends on his full financial picture and the actual terms at the time of purchase.

Next Steps if You Are Evaluating SBI Life

1. Visit sbilife.co.in and run a quote for eShield Next under your age, health, and desired cover amount.
2. If you are married and your spouse does not have separate term cover, check the Better Half Benefit terms — it may be more economical than two separate policies.
3. If a TROP plan is being recommended to you, calculate the total premium outflow over the policy term and compare it against a pure-term plan plus the equivalent amount invested in a PPF or similar instrument.
4. For Poorna Suraksha (CI+term hybrid), verify the plan UIN (111N110V03) on the IRDAI registered products database before proceeding.
5. Consult the how to buy term insurance guide before finalising your application.

Frequently Asked Questions

What is SBI Life’s Claim Settlement Ratio for FY 2024-25?

98.83% by the IRDAI Handbook on Indian Insurance Statistics, the standard cross-insurer benchmark. SBI Life’s own Integrated Annual Report for FY 2024-25 states 99.4%, calculated on a different base that includes group death claims. Both figures are legitimate; use the IRDAI figure when comparing across insurers.

What is eShield Next and which options does it offer?

SBI Life eShield Next (UIN: 111N132V02) is the primary online term plan. It offers three plan options: Level Cover (fixed SA throughout), Increasing Cover (SA grows 10% every 5 years), and Level Cover + Future Proofing (SA can be increased at life events like marriage, childbirth, or home purchase without fresh medicals). It also includes the Better Half Benefit (spousal coverage on the same policy) and terminal illness benefit.

What is the Better Half Benefit?

The Better Half Benefit allows the policyholder’s spouse to be insured under the same policy. If either life insured dies during the policy term, the sum assured is paid. Available on eShield Next and Smart Shield Plus.

Does SBI Life offer return-of-premium term plans?

Yes. SBI Life offers several TROP variants including Smart Swadhan Supreme, Smart Swadhan Neo, and Saral Swadhan Supreme. eShield Insta also has a Plan B option that returns 100% of total premiums at maturity. Before purchasing a TROP plan, compare the total premium cost against a pure-term plan with equivalent coverage.

Is SBI Life still a joint venture with BNP Paribas Cardif?

Not meaningfully. BNP Paribas Cardif was the original 26% co-promoter but has progressively sold its stake since 2019. Its holding is now below 0.5% and it no longer has a material promoter role. SBI Life is effectively an SBI subsidiary.

What is SBI Life’s solvency ratio?

1.91× as of March 31, 2025, reaching 2.04× in December 2024 before settling at 1.91× by December 2025. The IRDAI minimum requirement is 1.50×. SBI Life’s solvency position is healthy and comparable to private-sector peers.

Related Reading

• LIC Term Insurance: Complete Guide (2025)
• HDFC Life Term Insurance: Full Guide
• ICICI Prudential Term Insurance: Full Guide
• Tata AIA term insurance: complete guide (2026)
• Bajaj Allianz term insurance: complete guide (2026)

CSR methodology: All Claim Settlement Ratios on this page use the IRDAI Handbook formula: Claims Paid ÷ (Claims Paid + Claims Repudiated + Claims Rejected), by policy count. Pending claims and unclaimed amounts are excluded from the denominator. Source: IRDAI Handbook on Indian Insurance Statistics.