SUD Life Aarogyam Critical Illness Plan – Don’t get tempted with headlines
SUD Life Aarogyam Critical Illness Plan Review
Last week, Star Union Dai-ichi Life has launched new health insurance plan, SUD Life Aarogyam Critical Illness Plan. This health insurance plan indicates that it returns 100% premium on maturity of no claims are made. This SUD Life Aarogyam has some good features. Star Union Dai-Ichi life is a joint venture between Bank of India, Union Bank of India and Dai-Ichi Life of Japan. What is Star-Union Dai-Ichi Life Aarogyam Critical Illness Plan is all about? What are the unique features of this SUD Life Aarogyam Health Insurance Plan? What are the major benefits of this health insurance plan?
Benefits of SUD Life Aarogyam Critical Illness Plan
- This is non-linked and non-participating health insurance plan.
- Sum assured / Guaranteed amount is paid as lumpsum amount in case life insured is diagnosed with any of the 40 listed Critical illnesses.
- In case of diagnosis of any of the listed 40 critical illnesses, total guaranteed amount would be paid irrespective of actual medical costs.
- Fixed rate of premium is guaranteed during the first 5 years of the health insurance plan.
- Provides 25% additional coverage if the life insured undergoes Angioplasty (25% of Sum Assured up to a maximum limit of INR 10 Lakh).
- 100% Premiums are returned back at maturity if there is no claim except for Angioplasty.
- Low premiums for female lives.
- Discounted premiums for high sum assured (HSA).
What are the key features of SUD Life Aarogyam Critical Illness Plan?
- Policy term is 10 years.
- Premium term is for full term of 10 years where you can pay by quarterly, half-yearly or yearly.
- There are 2 major benefits a) 100% sum assured is paid if diagnosed for any of the listed 40 critical illness plans b) 25% sum assured is paid on angioplasty with a maximum of Rs 10 Lakhs.
- Any individual who is in 18 to 65 years of age can subscribe to this health insurance plan.
- Maximum maturity age is 75 years.
- Minimum sum assured is Rs 5 Lakhs
- Maximum sum assured is Rs 50 Lakhs
What are the 40 Critical Illnesses covered under this Star Union Dai-ichi Life Aarogyam Critical Illness Plan?
Is there any discount in premium for high sum assured?
This critical illness insurance plan offers discount on premiums in case one opts for high sum assured.
How the premiums are computed for this plan?
Premiums are computed for male and female lives at different rates.
- E.g. for 30 years male can take Rs 5 Lakh Critical Illness plan at Rs 15.56 for every Rs 1,000 sum assured and the premiums works out to be Rs 7,780 per annum.
- E.g. for 40 years male can take Rs 5 Lakh Critical Illness plan at Rs 22.23 for every Rs 1,000 sum assured and the premiums works out to be Rs Rs 11,115 per annum.
For complete list of rates, see below.
How you can buy this SUD Life Aarogyam Critical Illness Plan?
You can visit any of the 10,000 branches of Union Bank of India or Bank of India. Alternatively you can visit their site and provide your details so that an advisor can call you. Product brochure can be downloaded here.
Should you opt for SUD Life Aarogyam Critical Illness Plan?
- Several insurance companies like ICICI Pru life, Max Bhupa etc. are offering critical illness plans. The premium for a 40 year aged individual ranges between Rs 3,000 to Rs 6,000 per annum. They cover between 20-36 critical illnesses. For SUD Life Aarogyam plan, you need to pay Rs 11,115 for only critical illness plan (CIP).
- Since this CIP returns 100% premiums on maturity, you might have doubt that it could be better plan from that angle. You need to continue this health insurance for 10 years to get this benefit. You would get 100% premiums if there is no claim before maturity. To continue above example, you are paying extra premium ranging between Rs 5,000 to Rs 8,000 per annum for 10 years and in return you are getting your Rs 110,000 back at maturity. I personally would be interested in taking critical illness plan instead of critical illness plan with money back policy that charges higher premiums.
- This is how insurance companies would create plans with attractive headlines. You should avoid such plans.
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SUD Life Aarogyam Critical Illness Plan