SBI Life Poorna Suraksha Term Insurance Plan with Critical Illness – Should you opt?
Last week, SBI Life has launched SBI Life Poorna Suraksha which is term insurance plan that also covers critical illnesses. This insurance plan covers 36 critical illnesses. This insurance plan has unique feature of life stage rebalancing which would reduce life cover and increase critical illnesses cover over a period of time. What are the features of SBI Life Poorna Suraksha Insurance Plan? Who is eligible to take Poorna Suraksha Insurance Plan? How does SBI Life Poorna Suraksha compare with other insurance plans that cover critical illnesses like ICICI Prudential iProtect Smart or HDFC Click 2 Protect 3D Plan? In this article I would provide more insights about this term insurance plan and do a quick SBI Life Poorna Suraksha Insurance Plan Review.
Features of SBI Life Poorna Suraksha Insurance Plan
Here are the features of this new plan from SBI Life.
1) This is non-linked term insurance plan.
2) This insurance plan provides dual benefit of life cover + Critical Illness cover.
3) This plan covers 36 critical illnesses which includes heart stroke, cancer etc.
4) Policy term can be taken for 10 years, 15 years, 20 years, 25 years and 30 years.
5) Premium would remain same throughout the policy.
6) Premiums can be paid monthly, quarterly, half yearly and yearly.
7) Sum Assured can be taken between Rs 20 Lakhs to Rs 2.5 Crores.
8) Waiver of premiums on diagnosis of Critical Illness indicated in the plan.
9) Rebalancing feature allows customer to adapt to change as age increases.
10) Income tax benefit available on premiums paid on this policy as per section 80C and 80D.
11) UIN for this insurance plan is 111N110V01.
Who is eligible to take this Insurance Plan?
Here are the eligibility criteria:
1) Minimum age of Entry is 18 years and maximum age of entry is 65 years.
2) Minimum age of maturity is 28 years (10 years plan for 18 years aged person) and minimum age of maturity is 75 years (10 years plan for 65 years aged person).
3) Minimum premium is Rs 3,000 per annum and maximum premium is Rs 9.32 Lakhs per annum based on age, tenure and sum assured considered.
What is Life Stage Rebalancing feature in SBI Life Poorna Suraksha Insurance Plan?
This is unique feature available in this plan where the age of the insured increases, critical illness cover increases and life cover decreases every year. This would still keep the total cover constant for the entire policy term. At the time of inception of the policy, the Basic Sum Assured (BSA) would be spread between life cover SA and CI SA in the ratio of 80:20. For the first 10 years the CI SA will go up by 15% every year as a percentage of the initial CI SA. From 10-15 years it will go up by 10%, from 15-20 years by 7.5%, from 20-25 years by 6% and from 35-30 years by 5%. As the Critical Illness Sum Assured increases, the life cover will go down simultaneously.
What are the Benefits available in SBI Life Poorna Suraksha Plan?
There are various benefits under this plan. Let’s go into deep drive.
1) Death benefit
In case of unfortunate death of life insured, Life Cover Sum Assured (SA) would be paid as death benefit.
2) Critical Illnesses Benefit
This benefit will cover 36 ailments like brain tumor, cancer, kidney failure etc. The amount can be claimed independent of any other health insurance plan as a lump sum benefit irrespective of the actual bill amount. The Critical illness benefit will be paid only once and it will cease once it is paid. The CI SA will be paid only if the insured survives a period of 14 days after the date of diagnosis.
Example – Mr. Kumar is diagnosed with Kidney failure and dies within 7 days (which is less than the survival period of 14 days) from date of diagnosis. In this case company shall pay only the Death benefit and not the Critical illness benefit. However, if Mr. Kumar dies after 20 days from the date of diagnosis (which is greater than the survival period of 14 days), they would pay Death benefit as well as the Critical illness benefit.
There is also a waiting period of 90 days between the date of commencement of the policy and diagnosis of the critical illness and if a claim is made within that period, no CI benefit is payable.
Example – Suppose Mr. Kumar buys the policy with date of commencement of risk as 1st January 2018, then the Critical illness benefit will not be paid if the date of diagnosis of the Critical illness falls on or before 1st April 2018.
3) Premium Waiver Benefit
Under this benefit, premium will be waived off from the date of diagnosis of the critical illness till the rest of the policy term on diagnosis of a covered critical illness. Means, life insured need not pay any future premiums if he or she is diagnosed if diagnosed with any of these 36 critical illnesses. The life stage balancing would cease to exist once premiums are waived off and Life Cover Sum Assured would be constant from there-on.
4) Maturity Benefit
Since this is pure term insurance plan which also covers critical illnesses, there would not be any maturity benefits.
5) Income Tax Benefits
Premiums payable under this plan are eligible for tax deduction u/s 80C.
Are there any high sum assured rebates available in this plan?
Yes, below is the high sum assured rebate. Below table provides the rebate.
What are the Critical Illnesses that are covered under this plan?
Major CI are indicated below
1) Cancer of specified severity
2) First Heart Attack
3) Open Heart Replacement
4) Kidney failure requiring regular dialysis
5) Major organ transplant
6) Coronary Artery Bypass
8) Coma of specified severity
9) Permanent paralysis of limbs
10) Brain Tumor
13) End Stage Lung Failure
14) End Stage Liver failure
15) Loss of Speech
16) Major Head Trauma
17) Primary pulmonary hypertension
18) Third Degree Burns
19) Alzheimer’s disease
20) Aplastic Anemia
How does other Insurance plans that cover Critical Illness Plans compare with SBI Life Poorna Suraksha?
Critical illness coverage as part of Term insurance plans is not new. Such plans are already floated earlier under ICICI Pru Life Smart Term plan and HDFC Click 2 Protect 3D Plus etc.
a) SBI Life Poorna Suraksha Vs ICICI Pru iProtect Smart Plan
Both these plans offer term insurance plan coverage + critical illness coverage. ICICI Pru iProtect Smart Plan covers 34 Critical Illness while SBI Life Poorna Suraksha covers 36 critical illnesses. Both plans cover almost major diseases. However ICICI Life Plan comes with additional add on features like increased sum assured + benefits like lump sum and period sum payouts etc., hence ICICI Life iProtect Smart scores high compared to SBI Poorna Suraksha.
b) SBI Life Poorna Suraksha Vs HDFC Click 2 Protect 3D Plus
Both these plans offer term insurance plan coverage + critical illness coverage. HDFC Click 2 Protect 3D Plus covers 34 Critical Illness while SBI Life Poorna Suraksha covers 36 critical illnesses. Both plans cover almost major diseases. However HDFC Click 2 Protect 3D Plus comes with 9 different options on features like extra life income option, income option, income replacement option etc., which makes it as more flexible feature plan compared to SBI Life Poorna Suraksha Insurance Plan.
SBI Life Poorna Suraksha Insurance Plan – Should you opt?
SBI Life Poorna Suraksha Plan is not a new plan as there are several other similar plans already in the market. SBI Life Poorna Suraksha Plan premiums are almost comparable with other plans. However, there are only few options available in SBI Life Poorna Suraksha compared to other competitor plans available in the market. SBI Claim Settlement ratio for FY2017 was 96% (6th insurance company which has high claim settlement ratio). Its claim settlement ratio is fluctuating in the last few years (89% to 96%). It’s not an exciting plan as of now. One should take a pause, review the features, compare with competitor plans and then take a call. There are better plans already available in the market.
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SBI Life Poorna Suraksha Term Insurance Plan with Critical Illness Cover