Insurance Uncovered

I want to buy a comprehensive accidental plan and critical illness policy. Please suggest a good plan. What will be premium?

Kavindra Salunke, Latur

Personal accident policies are for covering the risk of a disability, following an accident that may impair your ability to work. So, when choosing a cover, opt for a large sum assured. But note that you may not get a SA that is disproportionate to your income.

Standalone accident policies pay the sum insured under the policy on the death of the insured due to accident. They pay a compensation on permanent total/partial disability too. In case of partial disability, they pay 25-50 per cent of the SI.

Religare Health, HDFC ERGO, Apollo Munich Health and Max Bupa Health offer personal accident policies. For a cover of ₹10 lakh, the premium will be ₹900-1,000 a year for a 35-year-old male.

Note that if you are engaged in hazardous occupations such as underground mining, making of explosives or electrical installations, you may not be able to get a personal accident cover easily.

One can also look for life insurance policies that offer accident cover as riders. Here, the premium will be cheaper, and the cover amount also higher. In standalone policies, the maximum cover one may get is only ₹30 lakh.

When you choose a rider cover with a life insurance policy, make sure it covers ‘disability’ too rather than just accidental death benefit. Also, some of these rider covers may not cover partial disability, in which case they are not of much use. Note that when the term of your life policy ends, the rider cover will also end.

In case of critical illness policy, you need to first decide what you are looking for. If cancer or heart disease is on top of your mind, buy policies that offer a cover for these illnesses. ICICI Pru Life’s Heart/Cancer Protect (that gives protection for both cancer and heart ailments) and Max Life’s Cancer Insurance Plan are the ones you must consider.

The premium on a ₹20 lakh cover under ICICI Pru Life’s Heart/Cancer Protect for a male of 35 years will be ₹9,500 a year.

If you buy general critical illness policies, the cover you get may not be comprehensive. They many exclude open heart replacement and not cover cancer of all types.

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