HDFC Life launches a health insurance plan

Private life insurer HDFC Life announced the launch of its indemnity-based plan Health Assure on Wednesday. Insurance-seekers can choose from two variants - gold and silver plans. In case of the former, sum insured under individual and family floater options can go up to Rs 5 lakh and Rs 10 lakh respectively. Under the silver plan, an individual can only buy a cover of Rs 3 lakh. For floater cover, the maximum limit is Rs 5 lakh. Under family floater, you are allowed to cover spouse, children, parents as well as parents- in- law. Maternity expenses are covered under the gold plan of family floater policies, provided the

policy has been in force for at least three consecutive years. However, the overall sum insured is subject to sub-limits - 1% per day for room rent and 2% per day in case of intensive care unit hospitalisation.
Like some of the new-age products launched in the recent years, this product, too, counts a high no-claim bonus rate among its key features. Health Assure promises a no-claim bonus of up to 50% in case of one claim-free year. The annual limit gets doubled after two consecutive claim-free years, but the total cover cannot exceed 200% of the original sum insured at any stage. The plan comes with a three-year tenure, which means that your premiums remain stable during this period even if you make a claim. You will have to renew the policy after completion of three years.
Upside : No-claim bonus of up to 50% for a single claim free year is a plus, as your sum insured is enhanced without hiking your premium. This could help in offsetting medical inflation which reduces the value of your sum insured every year.
Downside : Unlike some of the newer products launched in the market in the recent months, this product does not offer a zone-based premium structure. For instance, a 30-year-old woman buying a Rs 5 lakh cover under the gold plan will have to pay an annual premium of around Rs 9,000, irrespective of whether she lives in Mumbai or say Coimbatore, where healthcare costs are relatively lower.

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