SBI Life – Poorna Suraksha Plan life insurance with critical illness coverSBI Life’s Poorna Suraksha Policy is a term life insurance policy which offers an innovative critical illness cover. Term life insurance is life insurance that pays out only on death and has no maturity value. Critical illness cover is a policy cover that pays out on the diagnosis of a specified illness whether or not you die as a result of it. Commonly covered illnesses include heart attacks and some types of cancer. We explain why this particular combination is a growing trend in the life insurance industry, here.

In this policy, initial life insurance to critical illness break-up is in the 80:20 ratio. As you get older, the policy reduces the life insurance cover and increases the critical illness cover. However, the overall sum assured is kept constant. The reason is simple, you are more likely to fall ill as you get older and less likely to need term insurance as your children grow up and become independent. Your premiums are also kept constant.

The policy covers 36 critical illnesses. It also waives future premiums on the diagnosis of a critical illness. If however, you pass away within 14 days of diagnosis of a critical illness, you do not get money under the critical illness cover. You will instead get the term insurance cover.

The policy will increase the critical illness cover at different rates for different policy terms. These are as follows:

Term Rate of Critical Illness Cover hike (%)
10 15
15 10
20 7.5
25 6
30 5

So how does the policy actually work?

Here is an example:

Mr Anand has chosen a sum assured of Rs 20 lakhs and a policy term of 10 years.

Year Total Cover Critical Illness Cover Life Cover
1 20,00,000 400,000 16,00,000
2 20,00,000 460,000 15,40,000
3 20,00,000 520,000 14,80,000
4 20,00,000 5,80,000 14,20,000
5 20,00,000 6,40,000 13,60,000
6 20,00,000 700,000 13,00,000
7 20,00,000 760,000 12,40,000
8 20,00,000 820,000 11,80,000
9 20,00,000 880,000 11,20,000
10 20,00,000 9,40,000 10,60,000

If Mr Anand is diagnosed with a critical illness in the fifth year, he will be paid Rs 640,000 and future premiums will be waived off. His life cover of 13,60,000 will continue at the same level for the rest of the policy term.

Some Key Details:

Age: 18 to 65 years

Sum Assured: Rs 20 lakh to Rs 25 crore

Policy Period: 10, 15, 20, 25 and 30 years

Major diseases Covered: Cancer of specified nature and severity, Myocardial Infarction, Open Heart replacement or Repair of Heart Valves, Kidney Failure, Organ Transplant, Coronary Artery Bypass, Multiple Sclerosis with persisting symptoms, Stroke with persisting symptoms, Coma of specified severity, Permanent Paralysis of Limbs.

The list is indicative and general. For an exhaustive list with detailed definitions, go to

Also Read

Where Life Insurance Meets Health Insurance: Critical Illness Cover

What Are Critical Illness Plans? Why You Should Go For It

Policy Review: ICICI Pru IProtect Smart Offers Term And Critical Illness Insurance

Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at