IndiaFirst Life launches Moneyback Health Ulip

IndiaFirst Life has launched the unitlinked Money-back Health Insurance Plan, the second such product in the market after LIC's HealthPlus. It is an indemnity-based plan - the insurer will reimburse the expenses incurred on hospitalisation, subject to the sublimits and other conditions. You can choose between five fund options.

FEATURES: It is available as individual and family floater plans. The floater plan covers the policyholder, spouse, two children and two parents. The policyholder will be the 'primary life assured', and others will be referred to as 'other life assured'. Upon the death of the 'primary life assured', the benefits are paid out and the policy ceases to exist.

The policyholder can nominate a beneficiary to receive the sum assured in case of his/her death. The maximum entry age is 60 years and a policyholder cannot be over 70 at the end of the tenure. The maximum ages of parents at inception and maturity should be 65 years and 75 years, respectively. Children are covered till they turn 25.

SUM ASSURED: The minimum cover offered is Rs 1.5 lakh, and Rs 5 lakh is the upper limit. Under the floater option, the maximum sum assured is Rs 10 lakh.

TERMS OF COVERAGE: The maximum cover is restricted to five times the annual sum assured. There are sub-limits for doctor's fee, room rent, ICU charges, etc. On maturity, you will get the fund value, either as lump sum or in instalments, as per your choice.

PREMIUM AND PAYMENT TERMS: You can either choose the single-premium -with a tenure of five years – or the regular premium option, with a 10-year term. The premium will be reviewed annually. Till the age of 45, the minimum premium under the regular mode is Rs 10,000, while it is Rs 30,000 for single premium mode. If you are over 46, the minimum premium will be Rs 14,200 in the regular mode andRs 37,500 in the single premium mode.

CHARGES: Premium allocation charges are 13% in the first year and 2% in the subsequent years under the regular premium mode.

UPSIDE: Those unwilling to treat their yearly health premium solely as expense and prefer to create a fund instead may find the plan appealing.

DOWNSIDE: The plan is costlier than pure health policies, due to Ulip charges. Also, the policy gets terminated upon the life assured's death, leaving the dependents unprotected.