I’m a big fan of anything simple and something just grabbed my attention today when I was about to login to my SBI Banking account. SBI Life Suraksha Plus, a pure term insurance plan is now being offered as an Online policy, called eSuraksha. The terms were so simple to understand and a term insurance plan was on my radar since few months; needless to say, it was an instant subscription. Entire process didn’t take 5 minutes.
Few things about SBI Life eSuraksha Plus
First and foremost, this online plan is a shrunken version of the existing Suraksha Plus, in the sense that it doesn’t offer the whole range of options that the normal policy offers.
And, you can only subscribe to this online term plan if you are a Resident Indian and have a Savings account (with Internet Banking) in any SBI branch (Associate bank savings accounts are NOT eligible). Any other account is simple not eligible.
Coming to individual eligibility; one is eligible if he or she is aged between 18 and 45 years. This is a fixed plan for 10 years and you can choose between two Sum Assured amounts, Rs.5 lakhs and Rs.10 lakhs; no other options.
Premium will be Rs.748 per annum for a Rs.5 lakh SA plan and Rs.1495 per annum for a Rs.10 lakh SA plan. This is for a medically fit person who do not smoke; it may vary for others. There are absolutely no medical checks but it is up to one’s honesty to propose any illness’s you may have or else it might become a problem for your loved one’s during claim time (in case it arises).
This being a pure term plan, there is no maturity or survival benefit. This is simply a group plan comprising of savings bank account holders; helping each other in difficulties.
As said above, this plan is linked to one’s savings account, especially with the internet banking account. You can only pay the annual premium with this internet banking account. No other forms of payment will be acceptable (automatic scheduling can be done).
As applicable to normal policies, there is a free lookup period of 30 days with which you can decide to withdraw your proposed subscription. And there is also a grace period of 30 days from the due date for pay your annual premiums. The policy will lapse if premium is not paid with in the grace period. However, it can be revived with in 6 months of being in lapsed state by paying outstanding premium along with any interest that the company may calculate.
The cover will start immediately once you pay your first premium. All communication (premium receipts, policy bond) will be made through email only.
My review of eSuraksha plan
Honestly, there could be an easy way to subscribe to a term plan for someone who already has an SBI savings account with internet banking and with SBI being the largest bank, I think there are quite a few of them. As I said, the terms are very simple and straight forward with no asterisks around. I subscribed for a Rs.10 lakh SA plan for which the annual premium is Rs.1495. A simple comparison with other term plans tells me that this is the least premium that any company is asking. Sure, there may be additional benefits that other companies may be offering. But for a plain, no-nonsense term plan, this was easily the best.
Now, Rs.10 lakhs is definitely not enough for someone who is a sole breadwinner of their family. As I said before, you may have to look else where if this is the case. The normal pen and paper SBI life Suraksha Plus policy has a wider range with cover of up to 30 years and SA or Rs.1 crore or more. Or, you can then even look at other company’s products too.