Eight years ago I bought a health insurance plan which I realized later was a ULIP. ICICI Pru Health Saver. I am currently paying ₹15000 premium for a ₹3 Lakh health cover for 2 people and it has a Health Saver fund. My goal is to have a health cover of ₹10 lakh for my family and have my child covered as well. Should I be looking out for a separate health policy or should I be looking to increase cover in this plan, now that I have invested for such a long period?
- Sachin Salian
As you have found, ICICI Prudential Health Saver is a unit linked health insurance plan with a combination of health insurance and an investment element. The health insurance portion takes care of medical expenses in case of hospitalisation and the investment portion builds a health fund which takes care of expenses not covered in this hospitalisation benefit. This a very expensive plan because of the investment element in it.
The premium payment after deduction of allocation charges, administration charges, Insurance charges gets invested in a portfolio termed as Health Savings Fund. This Fund can be used after 3 completed policy years in the percentages specified, for the reimbursement of health care costs incurred like on medicines and drugs, diagnostic expenses, dental expenses, co-pays in medical insurance and other miscellaneous medical expenses not covered in medical insurance.
These type of policies are sold hard due to attractive commissions for the agent. For the same premium amount that you pay for this policy, you can get a pure health cover of up to ₹8-10 lakh for your family. Unfortunately, this policy does not have a surrender option and hence you can claim from the health saving fund (if expenses incurred) or continue the policy or just let the policy lapse and bear the loss.
It would more cost effective to take a stand alone health insurance policy. A family floater will be a good option for you to include your child.
Here are a few recommended family floater health plans based on your requirement. These plans have value added coverage or in built coverage of critical illness cover, hospitalization, pre and post hospitalization, medical check, accident cover etc.
These insurers have good past claim record too. You decide the adequate amount of cover based on your lifestyle, current health conditions and your family history of illnesses. Compare the benefits and features and the premium applicable for your age. The recommended plans are:
ICICI Lombard Complete Health Insurance
Religare Health Care
Apollo Munich Health Optima Restore