Wednesday, August 26, 2015
Decoded: Aegon Religare iCancer Insurance Plan
Aug 14 2015
In this column, FC gives its view on new financial products launched in the market. This is a subjective view. Investors are advised to take professional help in selecting a product and not reach a decision only on the basis of these reviews.
What is it: Aegon Religare iCancer is a fixed benefit health plan specifically for cancer. It covers all types of cancers, except skin cancer and different stages of cancer as well.
For whom: The unpredictable incidence of cancer has made practically people all age groups susceptible to the killer disease. However, the policy covers people who are between 18 years and 70 years. The entry age is 18 to 65 years, the online plan specifically targets net-savvy customers between 25 and 40 years. It provides a cover ranging between Rs 10 lakh and Rs 50 lakh.
Screening: The company asks four or five questions to a younger customer to assess his health status and healthy habits. If the company finds him to have habits like smoking, excessive alcohol consumption or family history of cancer, he is asked to go through general medical tests to find whether he is in a pre-cancerous condition. A customer of 40 years and above has to go through the medical test.
Features: As per the stage-based benefit plan, for minor stage cancer 25 per cent of the sum insured minus previous payments is paid out. A major stage cancer will receive 100 per cent benefit of the sum insured minus the previously paid claims and for critical stage the insurer will receive a total of 150 per cent sum insured minus previous payments. A person insured for Rs 20 lakh can get up to Rs 5 lakh for minor stage, Rs 20 lakh for major stage and Rs 30 lakh for critical stage.
For a person aged 30 years, opting for Rs 20 lakh sum insured, the annual premium can come around Rs 5300. The plan does not offer any death benefit, maturity benefit or surrender benefit. In case of a major stage cancer all the future premiums are waived. Aegon Religare also provides a guarantee that the premium will not change for five years.
FC Verdict: Considering the fact that cancer is fast growing as major cause of death, one may go for an additional cancer cover over and above a general health plan, especially if there is a family history of cancer. Aegon Religare’s iCancer is a simple plan with uncomplicated fixed benefits. The plan does not have any variant as the company feels that variants tend to confuse customers with more choice. Buying it online is a relatively simpler process. Insurer can also avail tax benefit under section 80D. It provides a cover for up to 52 years. While cancer can occur in any age group, studies have indicated that cancer incidence is higher among people above 70 years. The plan attains maturity at 70 and he will not receive any benefit if cancer occurs past 70 years of age.