Policy Review: HDFC Life Cancer CareHDFC Life Cancer Care gives you insurance cover for cancer from ranging from Rs 10 lakh to Rs 40 lakh. It will pay out a lump sum and/or an income depending on the policy variant you choose. It has a term ranging from 10 to 20 years.

Individuals between the age of 18 and 65 years can purchase this policy. Premiums on this policy will be eligible for deduction under Section 80D which covers medical insurance. This is limited to Rs 25,000 (including medical test) per annum for yourself but can go up to Rs 75,000 (Rs 25,000 + Rs 50,000) per annum if you are also paying for parents who are senior citizens.

It has three variants:

  1. Silver: The sum assured remains constant throughout the policy
  2. Gold: The sum assured increases at 10% every year until it reaches 200% of the sum assured or you make a claim.
  3. Platinum: You get the same benefits as gold and an income of 1% of the sum assured per month after the diagnosis of cancer for five years. If you pass away before this period ends, your nominees get the income benefit.

The premiums on the policy will remain unchanged for three years since the date of issue. After this time period, the insurer can hike premiums with the IRDA’s approval. You can pay your premiums monthly, quarterly, half-yearly or annually. You get a 15-day grace period from your payment date for monthly premiums. This is 30 days for other payment options – quarterly, half-yearly and annually.

The policy offers discounts when the sum assured exceeds Rs 10 lakh. It also offers a 5.5% discount on the premium if the policy is bought online. This policy will have no surrender value or maturity benefits. You cannot get any loans on this policy.

Key Benefits

Early Stage Cancer

The policy pays out 25% of the sum assured when early-stage cancer is diagnosed and waives premiums for the next three years. It covers early stage cancers such as carcinoma in situ, prostate cancer, thyroid cancer, basal cell and Hodgkin’s lymphoma.

Major Stage Cancer

It pays out 100% of the sum assured when major stage cancer is diagnosed, minus any sum paid out on the diagnosis of early-stage cancer.

Major stage cancers covered include malignant tumours such as lymphomas, leukaemia and sarcomas.

Limitations

  • Once a payout is made for major stage cancer no further payout will be made for a subsequent cancer diagnosis.
  • No benefit shall be paid within 180 days of purchase or revival of the policy and the policy will terminate in case of diagnosis within this period.
  • No benefit will be paid if the life-assured dies within 7 days of diagnosis.
  • Pre-existing conditions are excluded. These are defined as conditions whose signs or symptoms were diagnosed up to four years before the commencement of the policy.
  • Congenital conditions are excluded. Congenital means a disease or condition present from birth (There is a Delhi High Court order to the contrary, though: Read – Delhi HC Rules Genetic Disorders Cannot Be Excluded From Health Insurance)
  • Conditions caused by alcohol, narcotics or other drugs, except ‘over-the-counter’ drugs.
  • Conditions resulting from AIDS, or nuclear/biological/chemical contamination.

The revival of lapsed policies

If the policy has lapsed due to unpaid premiums, it can be revived paying these premiums along with interest and providing evidence of good health during this period.

The premium rates under this policy are fixed for the first five years. LIC can change them thereafter based on its experience.

RupeeIQ take

HDFC Life Cancer Care is a good option to deal with the risk of one of life’s most terrifying ailments. The policy is virtually indistinguishable from LIC Cancer Cover, except that the latter has a maximum term of 30 instead of 20 years and offers a maximum cover of Rs 50 lakh instead of the Rs 40 lakh offered by HDFC Life. That said, your choice between the two will largely be dictated by price. Make sure to check the premiums on both before making a choice.

Silver Plan

Premium per Rs 1,000 of sum insured, regular pay

Age (years) Policy Term (years)
10 20
Male Female Male Female
30 0.408 0.999 0.501 1.194
35 0.601 1.578 0.829 1.787
40 1.031 2.324 1.460 2.526
45 1.891 3.231 2.595 3.412
50 3.402 4.310 4.465 4.441

Key Details

Minimum entry age: 18 years

Maximum entry age: 65 years (subject to maximum maturity age of 75)

Minimum Policy Term: 10 years

Maximum Policy Term: 20 years

Minimum Sum Assured: Rs 10 lakh

Maximum Sum Assured: Rs 40 lakh

Premium Payment Mode: Annual, Half-yearly

This policy will not acquire any surrender value and no loans can be taken against it

HDFC Life will give you a 5.5% discount on the premium if you buy online.

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Author
Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at neil@rupeeiq.com.