ICICI Pru’s Health Saver is a Unit-linked health plans (ULHPs), which is a unique combination of health insurance and investment. So apart from giving health protection, this plan also help you to build a corpus that can be used to meet expenses not covered by health policies.
Sailent Features of ICICI Pru’s Health Saver
Minimum Age – 25 years to 55 years for individual plans
Max Age at Entry – 90 days to 55 years for family floater (Maximum cover ceasing age for children is 25 years under the family-floater cover)
Max Age at Maturity – Hospitalisation Insurance Benefit ceases at 75 years of age
Min / Max Annual Limit – Annual limits available under the plan are Rs. 2 lacs, Rs. 3 lacs, Rs. 5 lacs, Rs. 7 lacs and Rs. 10 lacs
Positive Points of ICICI Pru’s Health Saver
1- Health Saver provides a no claim bonus of 5% of the annual limit for every claim-free year up to a maximum of 25%.
2- The policy also includes a free health check-up once every two years after the first year.
3- Health Saving fund can be claimed only after three completed years and is subject to limitations.
4- Coverage against pre-existing illnesses & conditions after 2 years (subject to acceptance by the company)
5- Avail tax benefits under section 80D on premiums paid
6- Option to continue cover post 5 years even after stopping premiums (Cover Continuance Option)
Negative Points of ICICI Pru’s Health Saver
1- In case of death of principle insured, dependent would receive the entire fund value and the policy would be terminated.
2- Major Exclusions
The major exclusions under the hospitalisation insurance –
a)- Any kind of service charge, surcharge, admission fees, registration fees levied by the hospital.
b)- Pregnancy, infertility, congenital external diseases / genetic conditions.
c)- Non-allopathic medicine, Domiciliary treatment, treatment outside India.
d)- Cosmetic surgery & plastic surgery, refractive error correction, hearing impairment correction, corrective & cosmetic dental surgeries.
e)- Any treatment for substance abuse, self-inflicted injuries, STDs and AIDS.
(Note: The above is a partial listing of exclusions. For complete details, please read policy terms & conditions).
3- Premium Allocation Charge – This will be deducted from the premium amount at the time of premium payment and the balance amount will be used for allocation of units. The charges are as follows –
4- Insurance Charges for Hospitalisation Insurance Benefit –
The Hospitalisation Insurance Benefit will be charged on your actual age every month by cancellation of your funds units. This monthly cancellation of fund units will impact more in case of bear phases as more fund units will be cancelled to pay insurance premium per month. This charge could increase to keep in line with the increasing health care costs.
5- Policy Administration Charge – A policy administration charge is Rs. 60 per month where the premium payment frequency is yearly or half-yearly and Rs. 90 per month for monthly frequency. This will be recovered by cancellation of units
6- Fund Management Charge (FMC) –
Cover Continuance Option – Regular premium payment is compulsory for first 5 years for cover continuance option i.e if you don’t want to pay premium in future to keep policy in force you would have to pay premium for first 5 years.
If you don’t pay premium (after 5 years), the amount of premium will be taken from your fund value. So when you have more than 1 lac in your fund value and you are getting return of 12% p.a. then you need not to pay premium till the age of 75. To me it’s looks like OK in case of stock market – bull phase of stock market, impossible in bear phase.
For Existing Customers
1- Stay invested as this plan offers a no-claim bonus which other Unit Linked Health Plans do not.
2- In the past, the scheme’s investment options have generated good returns, offsetting the high cost structure. Investors may switch to Multiplier or Balancer funds for maximum returns.
For New Buyer
New buyer should avoid this policy, if you are still planning to buy this – buy it for long term (not for just 5 years for Cover Continuance Option). Any buyer (but need professional advice and disciplined approach) can create similar policy by buying health insurance (mediclaim) and investing the surplus premium amount in Equity funds. So this policy should be avoided by Short Term and Medium Term Investors. Long Term Investors may consider investing in the Policy but it’s not substitute of standard mediclaim as lots of exclusions then existing health insurance (Indemnity plan) policy.