Savings Bank Life Insurance (SBLI)

Low-cost life insurance sold by savings banks in the states of Connecticut, Massachusetts, and New York. SBLI is a popular source of life insurance in these states for two reasons: it is offered in bank lobbies, which makes it convenient; and there are no commissions, as with commercial life insurance, which makes it cheaper. Although banks generally are barred from the insurance business, SBLI was allowed by these three states at the urging of consumer groups. Other states have refused to adopt similar legislation. Maximum policy amounts are limited by state law.

Life insurance sold by savings banks in New York, Massachusetts, and Connecticut. Several types of insurance coverage are available: term life, whole life, limited payment life, and annuities. Insurance is sold over the counter, without sales commissions. The cost of coverage generally is less than comparable insurance from commission paid agents, although there are state imposed limits on the amount of insurance that can be purchased.