Insurance
ULIP: Bajaj allianz guaranteed maturity plan

Almost like an FD. But will you get the tax benefits?

Bajaj Allianz’s Guaranteed Maturity...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Kotak Invest Maxima: Expensive ULIP

Zero premium allocation charge but hefty policy admin charge

Kotak Mahindra Old Mutual Life...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Apollo Munich Optima Restore: A Mediclaim product with a difference

Apollo Munich has launched Optima Restore, a mediclaim with innovative features of restoring sum insured during policy year and giving 50% no-claim-bonus increase in sum insured for couple of years. Will this optimal product restore faith in hapless mediclaim insured?

Apollo Munich Optima Restore takes care of couple of key customer needs. Customers fear exhausting the sum insured (SI) during the policy year and hoping there would not be any more hospitalisation during the remaining policy year, as there isn’t any more insurance until the new policy year. Optima Restore will give additional SI (equal to base SI) without additional premium or paper-work. The only caveat is that the additional SI can be used only for new illnesses. This is applicable for individual and family floater products which can be a boon to customers. E.g. Individual or family floater of Rs3 lakh SI can potentially give Rs6 lakh coverage in a year for the individual or family without additional premium (if Rs3 lakh is exhausted in the policy year), as long as the additional coverage is used for new illnesses.

The other concern customers have is that no-claim-bonus (NCB) usually gives only 5% additional SI subject to maximum of 25% in most mediclaim products. Apollo Munich is offering 50% increase in SI for NCB at no extra premium, subject to maximum of two years. This means if there are no claims in couple of years, your SI can double without any premium for additional SI. The only catch is that if there is claim, your SI drops down to the previous policy year, but you are guaranteed base SI. E.g. Individual or family floater of Rs3 lakh SI will increase to Rs4.5 lakh SI next year if there is no claim. If there is another year of no claims, the SI will increase to Rs6 lakh, but you will pay premium on only Rs3 lakh SI. If there is claim in year, the SI falls to Rs4.5 SI. If there is another year with claim, the SI goes down to Rs3 lakh, but it will not go below Rs3 lakh. If there are claim-free years again, there is potential to increase SI by 50% for couple of years.

The best feature is that the restore feature of SI and NCB multiplier work together. E.g. Individual or family floater of Rs3 lakh SI will increase to Rs6 lakh SI in a couple of years with no claim. If for some reason, Rs6 lakh SI is exhausted in the policy year, the product will give additional Rs3 lakh (base SI) coverage for new illnesses. It means you can be covered for Rs9 lakh during that policy year by paying premium of Rs3 lakh SI.

 
The product offers SI of Rs3, 5, 10 and 15 lakh. As expected, the product pricing is on higher side, but it is still a good deal. The product offers no claims based loading and hence the premium is same for same age group, which is an additional advantage especially for those not in best of health. The maximum entry age is 65 years, but the product will offer life-long renewal.

The company is confident of not running into losses with the product offering, as it is based on 17 months of intensive research. The product is structured to give incentive to not lodge a claim. The company purports to have mopped up Rs1 crore premium in the last 15 days with a soft-launch of this product.

In the past, Reliance General HealthWise had run into trouble by giving cheap mediclaim and then running into huge losses which even compelled Insurance Regulatory and Development Authority (IRDA) to approve 500% jump in premium after the company kept the premiums artificially low for three years.

 

User

COMMENTS

vinod

4 years ago

apollo munich health insurance, india should not be trusted. they have duped and taken us, sr. citizen, for aride. they have refused to reimberse charges as promised by their medical centre and manager. only 5 medical tests were done on us but apollo munich health insurance has given us reports for 19 tests. where did they get reports for 14 tests when they were not done on us? do not

Kshitij Hunari

5 years ago

Apollo Munich defines the term Unbelievable with its new product Optima restore. But, play the Unbelievable contest and experience the truly unbelievable!

hemant

5 years ago

the product is very good with one of the best features available in the market. but one also needs to look at the long term prospective of premium increase with reference claims which will definitely increase over the years. as the age progresses beyond 55 yrs, with medical inflation the rise in premium which can be between 15 to 30% every 4 years is definite. it is advisable to go with PSU for premium consistency as they do not come with upgraded features in the same product and the fear of raising premium's every 4 years is very rare

Sundaram

5 years ago

Thanks,Raj,for this v.useful info.Indeed this is truly innovative in the Indian context.One problem with Apollo is that they do not have in-house administration of claims(they operate thro' TPAs, I understand,which can be cumbersome)."No loading" for claims is also a favourable aspect.But the fear is that they may substantially jack up the premiums after a couple of years leaving the insured high and dry.

REPLY

raj

In Reply to Sundaram 5 years ago

premium rise is given due to medical inflation. How much will depend on product performance. Reliance did increase by 500% and IRDA allowed them to do it.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)