Vying to replace mediclaim

Features. All those aged between 18 and 55 can take the Hospi Cash Back plan. The maximum age allowed at maturity is 70 years. The policy comes with a fixed 15-year term. Unlike other health plans that insist on a medical check-up for people above 45,this plan frees you from such rigmarole. The plan has a waiting period of two years,which means that all pre-existing diseases will be covered after the completion of two policy years.

This policy provides a life cover too five times the annual premium. On death of the insured,the nominee will get the higher of the sum assured or the total premium collected. On maturity,the total premium paid during the policy term gets refunded. Tata AIG also gives you the option to get 10 per cent guaranteed addition with the total premium amount of course,for an extra price.

Variants. The plan has two sub-categories gold and silver. As the name suggests,the gold category offers greater coverage. For instance,the gold package will give you a daily hospital income benefit of Rs 1,000,cover you for a total of 30 days in a year,and allow 180 days of cover throughout the policy tenure. All these limits are halved in case of the silver package.

Pricing. Of course,the difference in limits is reflected in pricing as well. Illustratively,a 35-year old male would have to shell out Rs 12,610 per annum for the gold package and Rs 8,300 for a silver one. The premium rate for a woman of the same age is Rs 14,170 and Rs 8,950 respectively. However,on maturity if you wish to take the total refund of premium with an additional 10 per cent of the total premium amount,then you will have to dole out more premium annually. For example,a gold plan for a 35-year old will cost Rs 18,340 and a silver plan will come for Rs 12,070.

These charges are quite high compared with other health insurance products. Moreover,this pricing is not fixed for the entire tenure of the policy and can be revised after completion of two policy years.

Other features. This plan allows you to take loans after the third policy year. You can also surrender the policy after three years although this is not advisable since the surrender charges are high.

Drawbacks. The first and foremost is the charge levied. The premium charged is way too high compared with other health insurance policies. The return of premium does not make much sense. A simple mediclaim policy one that reimburses the total cost of hospitalisation is cheaper and provides exhaustive coverage. A mediclaim cover for a 35-year-old should cost between Rs 3,000 and Rs 4,500 per annum. Now,if you invest the difference Rs 12,000 less Rs 4,500 in mutual funds or directly in stocks,you are likely to generate better returns in 15 years than what the company is offering you. The premium charged is also not fixed for the tenure.

Moreover,this is an income benefit plan and does not cover critical illnesses,which tend to eat up the maximum savings. Also,the plan has put a restriction on the number of days of hospital benefit.

There is no connection with risk pricing in this plan. The premium is too high and it does not even cover critical illnesses. A person will be better off buying a simple mediclaim policy, says Darvesh Panchal,assistant vice-president,Prudent Brokers.

MNYLs Lifeline Healthy Family

This is one of the most comprehensive health covers launched by Max New York Life. It is a family floater plan,which means that it will cover you,your spouse,parents and kids. The health cover is shared among the family members. The plans USP? It covers hospital cash,over 400 surgeries and 38 critical illnesses for the whole family under one plan and also guarantees renewals till 75.

Features. This plan can be taken by anyone in the age bracket of 18 and 65 for her family. Children between 0 and 18 years are allowed coverage. The plan allows renewals till the age of 75 and offers a fixed policy term of 10 years. Also,you are allowed to cover any number of children,whether biological or adopted,under this policy. The policy can be extended to your kids who are born after you have taken the policy. The premium will be reviewed after five policy years.

Comprehensive coverage. Lifeline Healthy Family covers 38 critical illnesses,over 430 surgeries,and also provides cover against congenital disorders. This is by far the most comprehensive coverage available through a family floater plan available today. The plan also scores high on number of hospitalisation days and daily cash limits. The family insured is entitled to 100 days of coverage in a policy year and 500 days during the policy term. The family is also entitled to fixed daily cash benefits in case of hospitalisation of Rs 1,000 per unit,and Rs 2,000 per unit in case of ICU requirements.

In case of no claim,the policy will bump up your surgical cash benefit by 5 per cent each year. Also,the policy guarantees renewal up to 75 years of age.

Segmented benefit for parents. The policy has segmented benefits for the parents in the plan. The various limits under each category enjoyed by parents are half of what is enjoyed by the proposer and the spouse.

Negatives. The plan,although quite comprehensive,charges a higher premium than that charged by other plans in the market. Secondly,the insured must go to network hospitals only to avail full payment benefits. In case any of the members of the family are treated at a non-networked hospital,then the company reduces the benefit payable to 20 per cent, says Panchal.

Thirdly,the waiting period before the insured can make a claim is high. In case of normal surgeries,it is 90 days,whereas the industry on an average has a 30-day waiting period. Lastly,the coverage for parents is half.

What should you do?

MNYLs plan does have a few shortcomings,but you can consider it if you wish to increase the coverage for your family. One must have a basic mediclaim plan. If you want additional cover over and above that,then you may look at MNYLs plan, says Panchal.

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