Preeti Kulkarni
These insurance plans may appear attractive, but you should evaluate their utility before opting for them.
Life insurance is supposed to protect income. If something untoward happens to the policyholder, the insurance policy provides money to replace his (or her) income. Therefore, an insurance company will sell you a large term cover only after checking your income profile and tax returns. Even financial planners say there is no need to buy insurance for a person who does not earn. But Vishwa Raja (see picture) begs to differ.
When the Hyderabad-based software professional was offered a term insurance cover for his homemaker wife Swetha, he immediately bought it. He is paying 4,200 a year for a cover of 50 lakh for Swetha for a term of 43 years.
The company, Aegon Religare Life Insurance, believes that even homemakers have an economic value for the household. "A homemaker has an intrinsic economic value, though it cannot be substantiated by pay slips or income tax returns. For instance, if she were to take up a job, it is obvious that the family will have to incur some expenses for running the household. Therefore, we decided to offer life cover to homemakers whose husbands (or wives) have bought our online term policy," says Harshal Mehta, director, marketing , Aegon Religare Life Insurance. There is a ceiling of 1 crore, and you will have to go through medical check-ups for covers of over 30 lakh.
Many insurance products meant for women went off the shelves after the new guidelines for endowment plans came in. Still, there are some policies that offer benefits specifically aimed at women. While some of these benefits seem attractive , buyers need to evaluate them before taking a final call. It's their utility value, not the 'exclusively for women' label that should be the deciding factor.
HDFC Life Smart Woman Ulip: This is like any other Ulip, except that a few benefits are specifically for women. "The policy covers key life-altering events in a woman's life, whether its childbirth, critical illness or unfortunate death of the spouse," says Sanjay Tiwari, vice-president, products , HDFC Life. Depending on the variant chosen, the product allows a woman to stop paying premiums for three years in case of pregnancy complications , birth of a child with congenital disabilities, diagnosis of malignant cancer of female organs or death of spouse.
However, like any other Ulip, this policy is costlier compared to a mutual fund and less flexible too. "The charges on Ulips have reduced but that has been the case with term policies and mutual funds as well. It would be better for investors to look at insurance and investment decisions separately," says Uday Dhoot, deputy CEO of financial planning firm, International Money Matters.
Tata-AIG's Wellsurance Woman: While the need for life insurance for homemakers is debatable, there is no scope for such doubts as far as health insurance is concerned. It is essential for working women as well as homemakers. "Uninsured women are more likely to suffer serious health problems as they tend to wait too long to seek treatment because of the costs involved. Only 10% of the total women workforce has some kind of health cover," says M Ravichandran, president, Tata-AIG General Insurance.
The Wellsurance Woman policy is a combo of hospitalization benefit and critical illness cover. It pays a lump sum in case the policyholder is diagnosed with any of 11 specified critical illnesses, including cancer, heart attack, stroke and kidney failure. It also pays out a daily cash benefit in case of hospitalization. But such a policy should be taken only as an addition to the basic health plan that covers hospitalization.
Bajaj Allianz's critical illness cover: The policy covers eight women-specific critical illnesses, including paralysis and cancers (breast, ovarian, cervical, uterine, vaginal and fallopian tube). "The treatment protocol for such illnesses is not only lengthy but also expensive and involves a lot of lifestyle modifications, such as giving up of job, ergonomic modifications at home, and so on. Hence, the need for a product specifically targeting this segment," says Renuka Kanvinde , assistant vice-president , health insurance , Bajaj Allianz General Insurance.
Source The Times of India
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