Cholamandalam MS General Insurance’s product covers 10-12 critical illnesses, with no medical check-up until 55 years and lifetime renewal. But the premium is on the higher side
Cholamandalam MS General Insurance Company has launched its ‘Critical Healthline’ policy, which provides for a lump-sum amount if an insured is diagnosed with any of the specified critical illnesses. The claim will be settled on the basis of critical-illness diagnosis proof and the necessary survival period. It does not require any proof of hospitalisation or treatment. The policy terminates with payment of critical illness benefit. It excludes critical illnesses arising due to pre-existing diseases (PED).
There are a number of such products available from various insurers currently in the market. The main advantage of this product is that no medical check-up is required up to 55 years, and it also comes bundled with lifetime renewal.
But there are a couple of major drawbacks in Cholamandalam’s product.
First, the premium is on the higher side compared to other critical illness products. Second, different survival periods have been specified for policy-benefit eligibility. For cancer of specified severity; a first heart attack; open-chest CABG (coronary artery bypass graft); kidney failure requiring regular dialysis; major organ or bone marrow transplant; surgery of the aorta and primary pulmonary arterial hypertension, the insured needs to survive for 30 days. In case of a stroke (resulting in permanent damage) and motor-neuron disease (with persistent symptoms), survival period has to be 90 days. For multiple sclerosis and Parkinson’s disease, survival period is stipulated to be180 days.
The product offers entry up to 65 years (with no medical check-up until 55 yrs) and a lifetime renewal facility. The ‘standard’ plan covers 10 critical illnesses, and the ‘advanced’ plan covers 12 critical illnesses—plus ambulance charges up to Rs1,000. Customers can choose from the two plan options for a sum insured of up to Rs10 lakh.
Here’s the comparison with other (similar) products available in the market:
Critical illness products have gained importance due to these diseases striking a number of people at a lower age than before, thanks to stressful work schedules and sedentary lifestyles. These diseases include cancer and cardiac attacks, among others. Unlike developed countries, India does not offer free medical cover to citizens, and this is a huge problem for the elderly after their retirement. To add to these problems, rising healthcare costs and medical expenses (other than hospitalisation) which are not covered by a mediclaim policy have made these critical illness products important. Like premium paid for a medical policy, critical illness product premium is eligible for tax exemption up to Rs20,000 under Section 80(D) of the Income-Tax Act.
Bharti AXA’s plan offers cover of a maximum of three times the sum assured under the policy, while covering three critical illnesses. The premium is waived by the insurance company after payment for the first critical illness. But it comes with some riders
Bharti AXA Life Insurance has launched its ‘triple benefit’ critical illness plan, called the Triple Health Insurance plan. This plan covers 13 critical illnesses that have been classified into three groups. The policy pays the sum assured (SA) on the diagnosis of one of the illnesses. The policy continues and can pay for additional critical illnesses as long as they are in other groups. The maximum coverage is for three critical illnesses.
As with all the insurance plans being offered by various insurance industry players, this one also has its advantages and shortcomings. Here are few of the advantages:
However, the plan does suffer from a few shortcomings.
HOW THE PLAN MEASURES UP AGAINST OTHER SIMILAR PRODUCTS
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