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SUD Life Aarogyam Critical Illness Plan

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SUD Life Aarogyam Critical Illness Plan Review

SUD Life Aarogyam Critical Illness Plan is a traditional, non-participating health insurance plan which provides a comprehensive coverage against major critical illnesses.


Highlights of the SUD Life Aarogyam Critical Illness Plan

  • This is a traditional health insurance plan which covers 40 critical illnesses.
  • An additional coverage is provided if the insured undergoes an Angioplasty besides coverage for the 40 illnesses. 
  • After the completion of the tenure if there are no claims made, the premiums are refunded back to the policyholder. 
  • The plan term is fixed and premiums are payable for the entire duration of the plan.
  • Rebates in premiums are allowed for higher Sum Assured levels.
  • Female lives are also charged lower premiums than male lives.


Working of the SUD Life Aarogyam Critical Illness Plan

  • The policyholder chooses the Sum Assured. Based on the insured’s age, tenure and Sum Assured chosen, the premium would be fixed.
  • The premiums are to be paid for the entire duration failing which the plan lapses and no benefits would be payable.
  • On diagnosis of the specified illnesses, the Sum Assured would be paid.
  • If the insured undergoes Angioplasty, an additional benefit would be paid. 
  • On maturity, the premiums paid are returned.


Benefits and Features of SUD Life Aarogyam Critical Illness Plan

  • Illness Benefit - The plan covers 40 critical illnesses and 100% of the Sum Assured is paid if the insured is diagnosed with any of the covered illnesses during the tenure of the plan. The plan would be terminated once the critical illness benefit is paid. The Sum Assured paid as the benefit would be highest of the following:
    • 10 times the annual premium
    • 105% of the premiums paid until diagnosis of the ailment
    • Maturity Benefit
    • Basic Sum Assured
    The Critical Illness benefit would be payable if the illness occurs after 90 days of policy commencement and the insured survives 30 days post diagnosis of the illness. If the insured has not suffered from any Critical Illness and has not made any claim in the policy, 25% of the Sum Assured subject to a maximum of Rs.10 lakhs is paid if the insured undergoes Angioplasty during the policy tenure. Despite undergoing Angioplasty, coverage for critical illnesses would continue and the insured would get the critical illness benefit if diagnosed with any of the covered illnesses.
  • Death Benefit - The plan does not pay any death benefit.
  • Maturity benefit – If the plan completes the specified term and matures and there has been no Critical Illness claim, the total premiums paid by the policyholder would be returned. The premiums would also be returned if a claim for Angioplasty has been made during the plan tenure. 
  • Bonus – This is a health plan and as such, bonuses are not declared. 
  • Loan –Loans are not available under the plan.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80Dof the Income Tax Act.


Eligibility Criteria of SUD Life Aarogyam Critical Illness Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 18 years 65 years
Maturity Age (Last Birthday) NA 75 years
Plan tenure 10 years
Premium payable Depends on the Sum Assured and age of the insured.
Premium Paying Term Equal to plan term
Sum Assured Rs.5 lakhs Rs.50 lakhs
Premium payment mode Annually, half-yearly, quarterly or monthly



Additional Benefits of SUD Life Aarogyam Critical Illness Plan

  • Riders – No riders are available under the plan.
  • Sum Assured rebates – Higher levels of Sum Assured qualify for premium rebates. The rate of rebate is as follows:
Sum Assured Range Rebate allowed
Rs.5 lakhs to Rs.749,000 Nil
Rs.7.5 lakhs to Rs.14,99,000 Rs.2 per Rs.1000 Sum Assured
Rs.15 lakhs to Rs.29,99,000 Rs.4 per Rs.1000 Sum Assured
Rs.30 lakhs to Rs.50 lakhs Rs.6 per Rs.1000 Sum Assured
 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date in case of annual, half-yearly and quarterly mode and 15 days in case of monthly mode of premium payment. The illness cover under the policy would continue during the grace period.
  • Free Look Period –A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.


Premium Illustration

The following chart considers the rate of premium payable by a male and a female at different ages for different levels of Sum Assured chosen.


The table shows the tabulated premiums of the above chart for an easy reference:
Age Sum Assured - 5 lakhs Sum Assured - 10 lakhs Sum Assured - Rs.20 lakhs
Male Female Male Female Male Female
35 years 8,970 8,790 15,940 15,580 27,880 27,160
40 years 11,115 10,565 20,230 19,130 36,460 34,260



Exclusions in SUD Life Aarogyam Critical Illness Plan

  • There is a waiting period of 90 days from policy commencement or revival for the coverage of the specified illnesses and payment of the benefit.
  • Pre-existing conditions are not covered for the first 48 months from policy inception.
  • Medical conditions which are suffered due to self-inflicted injury, HIV/AIDS infection, war, congenital anomaly or defect, organ donation, alcohol or drug abuse, diagnosis and treatment outside India and radiation are excluded.
  • If the insured commits suicide no benefit is payable under the plan.


Non-Payment of premium in SUD Life Aarogyam Critical Illness Plan

Premiums have to be paid for at least 3 years after which the policy can be surrendered or made paid-up.

Making the policy Paid-up

If 3 full years’ premiums have been paid and then the premiums are discontinued, the plan can continue on a Paid-up Value. The Sum Assured under the plan would be reduced and called the Paid-up Sum Assured. It is calculated using the following formula:

Paid-up Sum Assured = Sum Assured * (number of premiums paid/total number of premiums payable)

The benefit payable in case of Angioplasty is also determined as 25% of the Paid-up Sum Assured subject to a maximum of Rs.10 lakhs.

On diagnosis of any specified illness when the policy is in a reduced Paid-up state, the Paid-up Sum Assured would be paid. On maturity, the aggregate premiums paid under the plan would be refunded.


Surrendering the policy

The plan acquires a Surrender Value only after the first 3 years’ premiums have been paid. The Surrender Value payable would be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). 
  • GSV = total premiums paid * GSV Factor
  • SSV = total premiums paid * SSV Factor. The SSV Factor would be determined by the company based on its performance. 


Revival 

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.


 
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