SBI Life Eshield Term Plan or SBI Poorna Suraksha Term Plan: Which is better?
When you are looking to buy a new insurance policy, the chances are that you will be led in one direction – Term insurance. It is a life insurance policy that assures a pre-decided amount to be paid to the nominee if any unfortunate events such as death, critical illness, or disability happen to the policyholder within the policy term.
Let us understand term insurance through an example: Pranav purchases a term insurance policy for a sum assured of Rs 1 crore on his 30th birthday to secure his wife and kids from financial uncertainties if any unfortunate event happens to him. The premium was also at its lowest considering his age at the time of applying for the policy. Now, if Pranav encounters any fatal incident like death, the sum assured of 1 crore will be paid to his family as a death benefit. But, on the other hand, if Pranav outlives the policy term of 25 years, no benefit is payable.
There are many different term insurance plans offered by various insurance companies in India, each with its own pros and cons. To help you differentiate between the plans, here is a detailed overview of SBI Life eShield and SBI Poorna Suraksha.
What is SBI Life eShield Term Plan?
The SBI life eShield term plan is an online insurance plan from SBI life insurance that offers financial protection for your family in case of any unforeseen circumstance that may happen to you during the policy term.
8 Key features of the SBI Life eShield Term Plan
- An easy and seamless online process to avail of the policy.
- Two plan options are available: Level Cover Benefit and Increasing Cover Benefit.
- Under the level cover option, the sum assured remains the same throughout the policy term. With the increasing cover benefit, the sum assured increases at the rate of 10% at the end of every 5th policy year.
- Accelerated Terminal Illness Benefit comes inbuilt with the plan. The benefit amount equal to the death benefit will be paid if the insured is diagnosed with a terminal illness.
- Lower premiums for non-smokers
- Enhance the plan coverage through Accidental Death Benefit Rider and Accidental Total & Permanent Disability Benefit Rider
- A facility to get a second opinion on the treatment and diagnosis from reputed doctors is available for the policyholder if he/she is diagnosed with any serious illness.
- Income tax benefits for the premium paid and benefit received are offered under section 80D and section 10 (10D) of the Income Tax Act, 1961.
Who must opt for the SBI Life eShield term plan
After reading about the SBI eShield term plan details, it will be apparent that the policy is very similar to a regular term plan but with added benefits. For example, one can choose the level cover option if they are settled or already have a family, so the sum assured remains constant throughout the policy term.
The increasing cover option can be opted by those who are young and are still yet to settle down in life, so the sum assured increases at the rate of 10% after every 5th policy year to handle their life responsibilities. In addition, the inbuilt accelerated terminal illness benefit is also very good value addition to the already existing sum assured, thereby enabling the policyholder to undergo the necessary treatment for terminal illness without any financial trouble.
What is SBI Life Poorna Suraksha Term Plan?
This plan from SBI life insurance is unique in its way as it is a pure term plan with an inbuilt critical illness cover that balances between life cover and critical illness cover, based on the age of the life insured.
5 Key Features of SBI Life Poorna Suraksha:
- The policy offers life cover and critical illness cover under a single plan.
- The minimum sum assured is Rs.20 lakhs, and the maximum is Rs.2.5 crores which can be opted between 10, 15, 20, 25, & 30 years of the policy term.
- Follows the concept of Life stage rebalancing, wherein the sum assured chosen by the policyholder under life cover will reduce over the term. In contrast, the value of critical illness cover will keep increasing.
- Premium remains the same throughout the policy term irrespective of the rebalancing feature.
- Future premiums are waived off entirely if the policyholder is diagnosed with any of the listed critical illnesses.
Who must opt for SBI Life Poorna Suraksha?
The SBI Life Poorna Suraksha policy is a good choice for those who are looking for a single product that will take care of their insurance and health needs.
The LifeStage Rebalancing feature in this plan is one of the most significant advantages that one can ask for, especially considering the health complications of the current generation. At the inception of the policy, the policy balances the basic sum assured between Life Cover Sum Assured (SA) & CI Sum Assured (SA) in the proportion of 80:20, respectively.
At the end of every policy year, while there is an increase in the critical illness sum assured, the life cover sum assured gets reduced, accumulating more corpus towards the critical illness component. This CI sum assured will be paid on diagnosis of critical illness in the policyholder, after a waiting period of 90 days from the date of commencement of risk.
SBI Life Eshield vs Sbi Poorna Suraksha – Which to choose?
While the SBI life shield is equipped with an inbuilt terminal illness cover to protect against terminal illness, the SBI Poorna Suraksha comes bundled with a critical illness cover. Therefore, if you are inclined to protect yourself against rising healthcare costs, then SBI Poorna Suraksha`s life stage balancing feature shall help tackle the increasing healthcare costs. SBI Life eShield is best suited for those who want to build an excellent financial corpus by increasing the sum assured at regular intervals for their family and dependents to handle life’s challenges after the policyholder`s demise. So whichever plan you choose to buy, assess your requirements and family goals and decide.