Are you looking for a simple and affordable way to secure your group members’ future?
SBI Life – Group Micro Shield – SP is a Group, Non-Linked, Non-Participating, Pure Risk, Micro Life Insurance Plan designed especially for organizations, institutions, and communities who wish to offer life protection at a nominal premium.
Whether you’re an employer, microfinance institution, SHG, cooperative bank, NGO, or any affinity-based digital group — this single premium micro insurance plan gives your members financial security, peace of mind, and quick enrolment.
Why Choose SBI Life – Group Micro Shield – SP?
Micro Insurance Plan
Affordable life protection for large and small groups.
Group Term Assurance
Provide pure risk cover to your organization’s members at economical rates.
Easy Administration
Simple enrollment, minimum documentation, and smooth servicing.
Joint Life Coverage Available
Cover two members (spouses, siblings, partners, blood relations) under a single policy.
Key Features at a Glance
Two Flexible Plan Options
- Level Cover – Fixed sum assured throughout the policy term
- Reducing Cover – Ideal for lender–borrower groups; sum assured reduces as per loan schedule
Single Premium
Pay once and enjoy protection for up to 10 years.
Joint Life Coverage
Available under both Level & Reducing Cover options for:
- Spouses
- Siblings
- Parents & children
- Business partners
(No substitution of life allowed)
Wide Eligibility for Groups
The plan is ideal for:
- Employer–Employee groups
- Micro Finance Institutions (MFIs)
- Self-Help Groups (SHGs)
- NBFCs & Banks
- NGOs & Social Institutions
- Any permitted affinity groups, including digital platforms
Key Advantages for Your Group
Security
Your group members’ families receive financial support in case of any unfortunate event.
Flexibility
Choose the right Sum Assured and plan option based on your group’s needs.
No Medical Tests
Quick acceptance via simple health declaration.
Affordable Protection
Life insurance benefits at a nominal premium, perfect for low-income groups.
Death Benefit
In case of a member’s death during the policy term:
Level Cover
- Full Basic Sum Assured is paid in lump sum
- Cover ends for that member
Reducing Cover (Loan-linked)
- Death benefit = Sum Assured as per loan cover schedule on the date of death
- Paid regardless of actual outstanding loan amount
Joint Life Coverage
- On first death, Sum Assured is paid once
- Coverage ends for the surviving member
- In case of simultaneous death, only one Sum Assured is paid
Special Clause for Lender–Borrower
If authorization is provided:
- Loan outstanding is first paid to the Master Policyholder
- Remaining amount goes to the nominee
If no authorization: - Entire death benefit goes to nominee/beneficiary
Maturity Benefit
There is no maturity benefit under this pure risk plan.
Surrender Benefit
Members can surrender anytime during the policy term and will receive:
For Level Cover:
Surrender Value = (70% × Single Premium)x(Unexpired Term / Total Term)
For Reducing Cover:
Surrender Value = (70% × Single Premium)x(Unexpired Term / Total Term)x(Outstanding Loan / Initial Loan)
- Unexpired Term = Total policy months – elapsed months
- On surrender, cover terminates
- If premium is paid by members and Master Policyholder surrenders, members may continue their coverage until term end
Joint Life Coverage Rules
- Only for lender–borrower groups
- Allowed for level & reducing covers
- Both individuals must have the same loan amount and same term
- Death of any one member triggers payout
- Surviving member’s coverage ceases immediately
Grace Period
Not applicable.
However, if the member paid the premium to the Master Policyholder but it was not remitted to SBI Life in time:
- Policy still remains valid
- Claim will be honored upon proof of premium payment
Revival
Not applicable, as this is a single premium plan.
Tax Benefits
Premiums and benefits may be eligible for income tax benefits as per prevailing laws.
(Consult a tax advisor for accurate guidance.)
Who Should Consider This Plan?
This plan is perfect for:
- Organizations offering low-ticket loans
- Institutions providing financial protection to members
- Groups needing simple term insurance
- MFIs, SHGs, banks, NBFCs, NGOs, cooperatives
If your members need affordable life cover without complications, this plan is an ideal choice.
Who can buy?
Frequently Asked Questions
Who can be covered under the plan?
Any eligible member of a registered group or institution.
Is medical check-up required?
No. Only a health declaration is needed.
Can the plan be taken for loan protection?
Yes. The Reducing Cover is specifically designed for lender–borrower relationships.
Is joint life cover possible?
Yes, for spouses, siblings, blood relatives, or business partners.
Is there any maturity benefit?
No. This is a pure risk protection plan.
Disclaimer: This landing page provides an overview of SBI Life – Group Micro Shield – SP for informational purposes only. All features, benefits, terms, and conditions are subject to the official policy wording and regulatory guidelines. Tax benefits are as per prevailing income tax laws and may change. Customers are advised to read the sales brochure carefully and consult certified advisors before making any insurance purchase. SBI Life Insurance retains full authority over plan features and eligibility criteria.