Bajaj Allianz Women Critical Illness Plan – Does gender-specific cover help?

Raj Pradhan 20 February 2012

While the concept is appealing, most of what is covered is also available in a regular critical illness product. The new product is neither inexpensive nor does it offer lifelong renewal

Bajaj Allianz Women Critical Illness Plan is touted as the first-of-its-kind to cover women specific illness. It does offer some benefits that are not offered in regular critical illness products like paying 50% of sum insured (SI) on birth of a child with any one or more congenital disabilities, covers burns and lump-sum payment of Rs25,000 each as children's education bonus and loss of job within three months of diagnosis of a critical illness.

The drawback is that the women specific critical illness like breast cancer, fallopian tube cancer, cervical cancer and so on are already covered by regular critical illness products along with other type of cancers. Moreover, the regular critical illness product covers many others like coronary artery bypass surgery, first heart attack, kidney failure, stroke, multiple sclerosis and so on.

The premium pricing is comparable to Bajaj Allianz's own regular critical illness product, but gives less value due to restricted illness covers and the maximum SI is only Rs2 lakh. The cover is only for age group 21 to 55 years whereas some regular critical illness products in the market allow lifelong renewal (subject to conditions).

Advantage

Covers children education bonus of Rs25,000 and loss of job within three months of diagnosis of a critical illness pays Rs25,000 (both subject to conditions)
Covers 50% of SA on birth of a child with any one or more congenital disabilities like Downs' syndrome, cleft palate, spina bifida and so on. Only for first two children and not available if birth happens after policyholder attains the age of 40 years

Burns - 40% or more of the body surface area

Disadvantage

Product premium not expensive, but less value for money. E.g. Gives list of different women specific cancer, but regular critical illness product covers all types of cancer
Covers restricted number of critical illness. Regular critical illness product covers wider range of illnesses like first heart attack, stroke, kidney failure, etc.
Product is available till 55 years of age and maximum SI is Rs2 lakh
The premium for Bajaj Allianz Women Critical Illness for 35 year old woman buying Rs2 lakh insurance cover is Rs938. The premium for regular Bajaj Allianz Critical Illness product for 35 year old person buying Rs3 lakh insurance cover is Rs900.

Critical illness policy provides for a lump-sum amount on being diagnosed with any of the named critical illnesses. The claim will be settled on the basis of critical illness diagnosis proof and the necessary survival period. It does not require any proof of hospitalization or treatment. The policy terminates with payment of critical illness benefit. It excludes critical illness arising due to pre-existing disease.

Critical illness products have gained importance due to lowered age when critical illnesses like cancer, heart attacks strike, which can be attributed to stressful schedules and sedentary lifestyles. Surging healthcare costs and expenses other than hospitalisation which are not covered by mediclaim have made critical illness products important. Critical illness product premium just like mediclaim premium is eligible for tax exemption up to Rs20,000 under section 80(D) of Income Tax Act.

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