Aegon Life iCancer Insurance Plan – Should you opt it?
Cancer is one disease that can attack to anybody regardless of the lifestyle they follow and irrespective of the age, gender, class, etc. There are more than 100 types of cancers prevailing that can affect any part of your body. Considering the risk involved in the treatment of Cancer, Aegon Life has brought a special plan called iCancer Plan. These days we are seeing several advertisements about this plan. What is iCancer Plan from Aegon Life all about? What are the benefits of this Aegon Life iCancer Insurance Plan? Who is eligible to buy this plan?
Aegon Life iCancer Insurance Plan
Cancer is a critical disease, which demands substantial expenses, be it detected at any stage. Keeping in mind this point, the insurance companies have come up with insurance plans that secure you and your family against the expenses that incurs with the incidence of cancer. Aegon Life iCancer is one such plan. It covers all types of cancer except the skin cancer and it gives you pay outs at all the stages. Moreover, there is not much paper work involved in it as we can get it online.
Features of Aegon Life iCancer Insurance Plan
Aegon Life iCancer Insurance Plan is a non-linked non-participating insurance plan.
The minimum amount that can be assured is Rs. 10 Lakh and maximum is Rs.50 Lakh.
The sum assured cannot be changed during the entire term of the policy.
The policy can be obtained for a minimum of 5 years and maximum 70 years.
The premium payment term is equal to the policy term and the premium is to be paid either monthly or yearly.
The minimum age to enter the policy is 18 years and maximum age at which you can attain the policy is 65 years.
It is an individual insurance plan and cannot be obtained jointly with spouse or anybody.
The policy can be applied for non-working spouse or housewife only if he or she is a graduate.
The individual is not eligible to apply for the plan if he/she has pre-existing cancer.
How does the bifurcation of disease done in this plan?
The cancer has been divided into three stages according to its severity- early or minor stage, major stage and critical stage. If the person assured is diagnosed with cancer, a certain fixed percentage is payable to him according to the stage detected.
At minor stage – at this age, the insurer get 25% of the sum assured minus any previous claims up to maximum of Rs. 5 lakh.
At major stage – 100% of sum assured is payable minus any claims paid previously. At this stage, once the claim is approved, all future premium payments are waived for the rest of the policy term but coverage will continue till the policy terminates.
At critical stage – 150% of sum assured minus any previous claims is payable.
Let me explain this with an example on how Aegon Life iCancer Insurance Plan works
Pankaj (age 30 years) is a Engineer by profession. His wife is a house wife and they have a son who is 4 years old. Pankaj is attuned to the idea that cancer can happen to anyone regardless of what kind of lifestyle they lead. Hence he opts for Aegon Life’s iCancer Insurance Plan.
Policy term of 40 years, Sum Assured of Rs. 20 Lakhs and Annual Premium of Rs. 5,300/- (excluding taxes).
Diagnosed with minor stage: Immediate payout of Rs 5 Lakhs
Diagnosed with major stage: Immediate payout of Rs 15 Lakhs
Diagnosed with critical stage: Immediate payout of Rs 10 Lakhs
Total payout = Rs 30 Lakhs.
What are the tax benefits available in this plan?
The premium paid and benefits received are eligible for tax benefits under Sec. 80D of the Income Tax Act, 1961.
Is there any difference from regular medi-claim policies?
This is fixed benefit plan and offers lump sum payout at a defined stage whereas in medi-claim plans, the payouts depend upon the expenditure incurred in the hospital. Moreover, in normal medi-claim policies, the payouts are not sufficient to meet the expenses incurred on this disease depending upon the stage.
What happens in case of premium lapse?
If you have opted for monthly mode, a grace period of 15 days and if opted for annual mode, a grace period of 30 days is granted to pay the premium. If the due premium is not paid in this period also, the policy will lapse and insurance cover will cease.
In case the policyholder wants to revive the lapsed policy, he has to apply for its reinstatement within two years from the due date of the first unpaid premium. In such case, the policyholder will need to pay all unpaid premiums along with the interest first.
Does premium remains same for entire period?
Premiums are guaranteed for a period of 5 years. After every 5-year term, the policy is reviewed to determine whether the applicable premium will remain the same or it needs to be changed. Premium can be revised only if it is approved from IRDAI and is informed to the policyholder atleast 30 days in advance.
Can NRI’s buy Aegon Life iCancer Insurance Plan?
Yes, NRI’s can buy this insurance plan.
Can you opt for this cancer plan if your parents have Cancer?
Yes, you can apply for the plan. However, the final decision would be by the insurance company to issue the policy or not.
If I consume Tobacco, can I apply for this plan?
Yes, you can apply for this cancer plan.
Should you opt for Aegon Life iCancer Insurance Plan?
First of all you should consider taking term insurance plan. Beyond this, if you are the only earning member of the family and has family history of elders getting cancer disease, you should consider such Cancer plans. Such plans can help you to safeguard your assets which can erode during cancer treatment. Alternatively you can opt for Term Insurance plans which cover critical illness coverage including Cancer.
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