ICICI PRU HEALTH SAVER - A REVIEW
61ICICI HEALTH SAVER - A ANALYSIS
ICICI PRU HEALTH SAVER
There is a new plan "ICICI Pru Health Saver" in market. This is being called as ULIP and which boast of availing tax benefits u/s 80D for the entire amount invested. Being a ULIP, Because of benefits u/s 80D It looks attractive. Here is the analysis of the same for your Benefit. Earlier the combo of Health Plan & ULIP was available from LIC as well as Reliance but in both these policies, the 80D benefit was not available on investment part. So ICICI Prudential Life Ins. cos. has moved with this cleverly drafted policy. Here the investment part of ur prem. or in other words fund value can only be redeemed against medical treatment/expenses. This policy is a combo of usual mediclaim policy & ULIP. Just dig deep into the skin of this policy & you will come to know the real truth. First understand what this policy offers? Apart from a normal mediclaim benefit, due to investment component from 3rd policy years onwards u can claim more than ur standard Sum assured with a ceiling set by company. Say ur original SA is 3L Rs, after completing 3 policy years u can claim a normal claim of 3L rs. under mediclaim benefit & another 20% of ur accumulated fund value. In other words u can redeem ur fund upto 20% value of fund. This fund value ceiling `ll increase with the years pass & after 10 policy years u can claim 100% of fund value. As per the product brochure of this plan, This policy can be taken as individual plan as well as family floater plan. Here r the negative aspects of this plan. 1. High Prem. allocation charges - 20% for 1st year, 2 & 3 year 9%, 4-10 years 2% & Nil from 11 year onwards. 2. In case of family floater option, in case of death of primary insured (the eldest member of family), the policy `ll be terminated immediately. 3. Regular prem. pmt. is compulsory for first 5 years for cover continuance option i.e if u don`t want to pay prem. in future to keep policy in force u `ll have to pay prem. for first 5 years. 4. No surrender of policy is allowed except the first 15 day free look period window. 5. Ins. charges for general mediclaim policy as well as policy admin charges `ll be recovered by cancellation of UNITs which `ll impact u severely in prolong bearish phases like the current one. 6. For individual plan option the mly. policy admin charge is 60 Rs. where as for family floater option the same is 90 Rs. 7. A long list of exclusion, which i can`t post here in this limited space of MMB. 8. Actually the health saving option of this policy is similar to our general practice of dipping into our savings to sat off the medical bills. 9. Plz. note the prem. for general mediclaim benefit (known as Hospital insurance benefit in this policy) `ll be charged on ur actual age every month by cancellation of ur UNITs. this is not the case in normal mediclaim policies of Gen. ins. cos. where u pay prem. as per age band of say 31-35, 36-40...... Again this monthly cancellation of UNITs `l impact more in case of bear phases as more UNITs `ll be cancelled to pay insurance prem. per month. For individual Plan - Min. entry age is 25 years completed & max. age is 55 years. For family floater Plan - Min. entry age is 90 days & max. age is 55 years. In each of the above policy the maturity age is common i.e. 75 years. Recommendation The same effect of mediclaim & saving can be achieved by purchasing a cheaper mediclaim policy as well as investing the surplus amount as per our comfort level in Eq. or Debt funds or anywhere else. So this policy should be avoided by Short Term and Medium Term Investors. Long Term Investors may consider investing in the Policy in moderation. Visit http://goodfundsadvisor.blogspot.com for more indepth info and analysis on Mutual Funds
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I can understand what the main question & relative doubts there on in your mind.
Here is the answer - For normal mediclaim policy, to claim 80D benefit upto max. limit of 15K, for a normal family of 2Adult & 2 minor child, the prem. 'll be around 2K to 3K per lakh & higher there after as per the age band. So in case of normal mediclaim, to exhaust full 15K limit, the cover amount can be anywhere from 5L to 7L depending upon age again. In case of IPru health saver, Ur total prem money is eligible for 80D even for a lower cover of say 1.5L or 2L. Bcoz, in this policy the extra prem. apart from normal mediclaim cover is invested ion funds & later on it can be used only in case of claim more than policy cover amount. Effectively u can't withdraw money from this plan for ur general needs like any other ordinary ULIP. That's why the total prem. is eligible for 80D. Plz. note in case of LIC & Rel. similar health ULIPs, the investment part can be withdrew at ur will & for any reason, hence no 80D benefit for full prem. amount for these policies. i hope the matter is clear to u now.
One Sandeep wrote :
why didnt u say a word about FREE 1% OF CLAIM OF HEALTH CHECKUP OR 5000 PER 2 YRS, AGAIN WHY DIDNT U SAY ANYTHING THAT U DONT NEED TO PAY A SINGLE PAISE AFTER 5 YRS TILL 75 YRS ARENT THESE IMPORTANT THINGS TO MENTION??
SRIKANTH SHANKAR MATRUBAI replied :
Dear Sandeep, Here is my take.1. Free health check up every 2 year. - Just calculate the money deducted by Ins. co. for Prem. allocation charges in initial years, the same free health check up we can arrange from this money. Even now a days Some plain vanila mediclaim policies offers free health check ups. every 2 years.2. My dear friend by not investing money after 5 years, u r again playing in the hands of Ins. co. being ULIP, u r already aware that it's advisable to pay prem. By stopping prem. pmt. u r inviting trouble. As every year the basic mediclaim prem. 'll be recovered by cancellation of units. & in between if there is claim above SA limit, ur fund value 'll be worst hit.thanks
i would like to know the premium of myself(41yrs),wife(38),daughter(15).as max limits in 80 D is 10000,please clear my doubts
Quite an interesting analysis, can you suggest which is the best mediclaim policy in the market to
1. Get a good cover (most common ailments, accidents and emergenices)for the family
2. 80D benefit
i was planing to take a health plan for me and my family ,and almost fixed up with medi claim when an agent told me about icici pru health saver which iliked untill i read you review i could not understand exactally whats wrong with it, and about it hidden clause.could u clarify it for me with less abbrrivations. mediclaim tells me to pay 7895 premium every year , icici 15000 family flotter.mediclaim i willreq to pay for the rest o f my life buy icici only 5 years .more ove any one member can use up to 5lac unlike mediclaim 2lac for me and wife and children 1lac
i have a doubt ..... after 3 years if i have not met any major illns can i with draw amount that i have payed as premium for my personal use
can some one clear my doubt
thanks for the help
Hi guys,Even I have made my mind completely with ICICI Health Save after analyzing the other medical plans available in market. and my analysis was that I will take SA of 2 lac for first 5yrs then next 5 yrs,3 lacs,next 5 yrs 5 lacs,and remaining time 10 lacs which suits my requirement as at present I am in a MNC which gives mediclaim .The total amount which I am paying will be 1 lac in 5 yrs ( 20X5) and then need not pay anything based on ICICI calculation with respect to fixed interest rate of 8.2%. So there is no harm looking with this option as no one else is providing . Only worry is If primary mem is not available policy will terminate which is worst condition ,but even one of my friend informed that it will transfer to nominee... so oveall no harm ...Please suggest for any loop holes in this policy
Hi ,Even I have made my mind completely with ICICI Health Save after analyzing the other medical plans available in market. and my analysis was that I will take SA of 2 lac for first 5yrs then next 5 yrs,3 lacs,next 5 yrs 5 lacs,and remaining time 10 lacs which suits my requirement as at present I am a govt. of india empl which covers medical facilty but only problem is speedy referral issues .The total amount which I am paying will be 75k in 5 yrs ( 15X5) and then need not pay anything based on ICICI calculation ..Please suggest for any loop holes in this policy with your recommendation , urgent reply is requested.
Taking such a Big Health Cover only in ULIP is not advisable and also it is wrong to have your entire medical cover with one Insurance provider, especially when you are taking such a big cover.
Hi um a beginner to all these Insurance policies, I am thinking of buying health saver and my basic goal is to get medical cover and at the end earn some money... so should I go for this plan.
Dear Sachin,
For your requirement, ICICI Health Saver would definitely fit in.
However, it would be better if you could give your entire data of investments and objectives/goals to give a clear answer.
You can visit my blog http://goodfundsadvisor.blogspot.com for more details
Please inform me the benifit
Hi, being a dumb at the time of buying I bought this policy with my age 29, wife age 27 last year..
A 35K as yearly premium with me and my wife covered for Rs 5 lacks each.
I am really in a situation like, is it really that worth putting this much money in this policy.
I have 2nd year EMI due in this month.
Please advice me, should I continue paying for same coverage OR
terminate policy and look for other better alternatives?
Looking for your advice
Thanks and Regards,
Yogesh
Yogesh - Better opt for ICICI Health Save.
Hi,
I'm planning to take Health Policy for parents Dad is 55 years old and mom 52.
Can you suggest some good policies available in market.
I don't know much about medical policies.
Thanks,
Prakash
here is fraction of faq about this policy
What if I am unable to pay my premiums after the first five years?
On payment of at least first five years’ premium, you have the option of opting for a cover
continuance option wherein your further charges would be deducted from your fund until fund
value falls below 110% after which the policy would be foreclosed.
so dont say u dont have to pay after 5 years
hi
what i understand from the above details is that If you pay teh premium for 5 years, you will get the cover under the fund for whole life (the premium of teh same would be deducted from the funds). You also suggested that its a good policy for long term.
My question is if i continue the policy, say upto 30 years from now, what is the benefit? Will i able to get get the fund value after maturity or i can claim the fund value through the health saver benefit only?
Hi, please can you suggest any mediclaim plan which would be use full for entire life and at the end i should get some money from it apart from covering the mediclaim
Thank you
IF I PAY PREMIUM UPTO 10 YRS THEN WHAT AMOUNT MINIMUM CAN I WITHDRAW FROM HEALTH SAVER POLICY AND HOW LONG THIS MEDICLAIM POLICY WILL REMAIN ACTIVE?
REGARDS,
sir i am holder of icici pru health saver.my yearly premium is Rs.15000 and i have paid premium for last 3 years,please inform me as to how much refund will i get if i surrender my policy at this point. an early reply is requested . btalera@gmail.com
i am in the same situation as of mr .bhavesh above ,plz mail me or reply here nd_td@gmail.com
thanx
Dear Sir(Bhavesh),
Please be assured that our representative will get in touch with you shortly to help resolve your query towards your policy.
Regards,
ICICI Prudential Life Insurance
Dear Sir(Chander),
We acknowledge your concern towards the policy. Someone from ICICI Prudential Life Insurance will get in touch with you shortly to help resolve your concern.
Regards,
ICICI Prudential Life Insurance
I had paid 2 premium of 15000 each i want to know should i continue paying or stop payment at a loss of Rs. 30,000/- or should pay 3 more installment and then stop paying. Please explain
Dear Vishnu,
The Fund Value would depend on the performance of the investments made by the fund....though 30 years is a good enough period for any fund to make decent returns.
But, please remember that the fund charges here in this fund are different and hence, a combination of simple Mediclaim policy and Mutual Funds would be a definite winning combination
Well, this the ICICI health Saver is the one for you
The policy will remain active as long the fund value is aboue 110% of the Premium you have to pay....
Bhavesh, for this you will have to contact the Agent who sold (mis-sold?) to you or the ICICI customer care.....
Please take a advise from a competent advisor and then invest
Ajay, to surrender or not would depend on a number of things., like for instance, whether you have another Mediclaim policy,etc.
Please contact your Advisor and take his advise...
Dear Sir (Chander),
We are unable to establish a contact with you via the email address you have provided. To assist you better, we request you to share your policy details with us.
Alternatively you may also post your query along with your policy details on http://www.iciciprulife.com/ipru/GrievanceRedStep.
Request you to quote the reference number 010072_zf whilst sharing the details. Post receipt of the requirement, our representative will get in touch with you within 48 hours.
Regards,
ICICI Prudential Life Insurance
Dear Sir(Bhavesh),
Your concern has been addressed and details have been shared at your email address. To assist you better, we request you to share your policy details with us.
In case of any further clarification, please contact us on our toll free number 1860 266 7766 or write to us at lifeline@iciciprulife.com.
Regards,
ICICI Prudential Life Insurance
Hi,
Let me first say that it doesn’t surprise me to see so many bad comments about this cheat Insurance Company. I personally never would have bought health insurance from this company but they managed to victimize my unsuspecting father.
In 2008, ICICI company sales officials met my father to sell Health Insurance Policy. My father mentioned to the sales official that he is unable to read English properly and has limited knowledge of Health Insurance Product and hence will not be able to buy. The sales official tried convincing him that my father need not worry about documentation as it is his job to get it done. Further he used the bait that my father had pre-existing medical condition so he should take insurance. My father fell into his trap and after disclosing all his medical condition, he agreed to opening the policy with the assurance given by the agent that all things will be taken care of in documentation and he will get the insurance despite his pre-existing medical condition.
My father continued dutifully paying the premium and when he needed to settle a bill in Nov 2011, he was denied a claim citing pre-existing disease (which he had disclosed at time of policy inception). The ICICI Prudential legal team has been highly unhelpful and malafide in their intentions when responding to queries from me. In every letter they come up with some random absurd reasoning for denying claim and when I repute them in my response letter they again send another letter with some other reason.
Now they are refusing to even give details of the medical test conducted on my father and further are not even refunding the premiums paid and fund value (as they have cancelled the policy). They are blatantly asking to go to court knowing that they have full lawyer force and a common man would find it difficult to fight the lawyers.
I have also complained to IRDA and hoping for them to provide justice.
If anybody has any suggestions, please let me know.
This is also an advice to anyone planning to buy ICICI Prudential policy. Please refrain. They are a cheat and fraud company. Just think if you can ever associate the word "TRUST" with this company the way you can associate with product like TATA, BAJAJ etc.
I am sure ICICI prudential officials are so unconcerned that nobody would be monitoring complaints made by people about them on social forums like this. I just hope to receive the due claim to me for medical bills.
Astha Sharma 3 years ago
How would you then get a tax benefit on the surplus amount? Here you can claim upto 15k under section 80D. One can save upto 4.5k tax by investing 15 k.... Won't that take care of the extra cost assigned to it... taking that into consideration, how expensive is this?