What is it?
It is a health insurance plan that pays a lump sum amount for three critical illnesses during a fixed term of 15 years.
What do you get?
This policy covers 13 critical illnesses, grouped under three categories. The policyholder can make a claim on account of one ailment each from the three categories. For every claim made, the insured person will get 100% of the sum assured. So if you happen to contract a critical illness from each group, you can make a claim equal to three time the sum assured. Group A consists of critical illnesses, including heart attack, paralysis and organ transplant of kidney and heart. Group B consists of coma, multiple sclerosis and organ transplant of lung or liver and Group C of cancer, benign brain tumour and bone marrow transplant.
What to watch out for
You shouldn’t have any pre-existing diseases before buying the policy. Also, if you make a claim for a critical illness, you need to wait for a year before you can make a claim for another critical illness. The policy has an initial waiting period of 90 days, when the insurer will not entertain any claim. It also has a survival period of 30 days, which means that the insurer will honour any claim only after the insured person survives the first 30 days. The waiting periods are similar to other critical illness policies.
After you make the first claim, the policy will waive all your future premiums and it will continue to cover you for the rest of the term against a critical illness mentioned in the remaining groups. This policy comes in two variants: without return of premium and with return of premium. Without return of premium is a pure critical illness policy that pays a lump sum against a defined critical illness. With return of premium option gives a survival benefit and a death benefit in case you have made no claims during the term. On survival you get a sum equal to 15 times the first-year premium, but on death the nominee gets a sum equal to the first-year premium multiplied by the number of years the policy has completed till then. The premium for the return of premium option is more than its plain variant. For example, for a sum assured of Rs 5 lakh, a 35-year-old will have to pay an annual premium of Rs 3,360 for the basic plan, but the premium shoots up to Rs 7,665 for the other variant.
Please note that the premiums are fixed for the first three years of the policy and are subject to revision.
Mint Money take
Even as the plan offers thrice the sum assured on account of three critical illnesses, the waiting period of a year between each ailment is a problem. Premiums are comparable with other long-term critical illness plans, but are on the higher side compared with critical illness plans that are renewable every year. If you wish to top up your basic health insurance plan with a critical illness plan, you could consider the basic version of this plan.