It is rare for life insurers to offer products similar to what their general insurance counterparts do.

ICICI Prudential Life has come out with ‘Wish,’ a term insurance-like product with health cover rider-like features, directed specifically at women. The company has launched two health plans that would pay the sum assured or a portion of it in case of diagnosis major/minor critical illnesses, and in instances where major/minor surgeries are required. There is an additional maternity care benefit that also caters to childbirth related complications.

If there are no illnesses or surgeries during the entire period of policy coverage, nothing would be payable to the policyholder.

There are a few interesting features such as the premium remaining the same through the entire coverage period and a premium sabbatical while still enjoying the benefits.

Read on for more on the new ICICI Prudential Life Wish policy.

How multiple coverages work

As mentioned earlier, there are two options offered to policyholders. The Health Care Plan covers minor and major critical illnesses under the ‘vital care’ benefit and against surgeries under the ‘surgical care’ benefit. The other option is the Health Care Plus Plan that provides the vital care and surgical care benefits and an additional maternity care benefit.

The vital care benefit is available for sum assured of ₹10 lakh to ₹50 lakh. ICICI Prudential Life Wish offers coverage for 8-30 years under the regular pay option.

Now the surgical care benefit carries 50 per cent of the sum assured in the vital care option. There are separate premiums charged for each benefit.

Those opting for the maternity care benefit will get 25 per cent of the surgical care sum assured additionally by paying an extra premium.

The vital care part covers 11 women-specific critical illnesses – five major and 6 minor ailments. Major critical illnesses include seven main cancers, myocardial infarction, rheumatoid arthritis, and a couple of other diseases. Minor critical illnesses include urinary incontinence, thyroid disorders, uterine prolapse among others.

On diagnosis of major critical illnesses during the coverage period, 100 per cent of the vital care sum assured will be paid out and the policy would be terminated.

If a minor critical illness is diagnosed, a fixed percentage of the cover amount (10 per cent, 50 per cent or 100 per cent depending on the ailment) would be paid and the vital care cover would continue with the remaining amount (sum assured minus paid out amount).

The surgical care benefit covers nine women-specific surgeries (five major and four minor surgeries).

When diagnosed with the need for a major surgery, 100 per cent of the surgical care sum assured would be paid and this cover would cease. But the vital care benefit would continue with premiums payable for this benefit alone.

In case a minor surgery, 40 per cent of the surgical care sum assured would be paid and the cover would be terminated. Here, too, the vital care benefit would continue.

The policy has regular and limited premium payment options.

Even if the policy coverage runs for 25-30 years, the insurer has stated that the premiums would remain the same for the entire period.

Also, ICICI Prudential Wish allows you a premium sabbatical. So, you can skip one premium payment in your entire policy period and still continue to enjoy the benefits.

Interestingly, if you pay all the premiums without skipping any, the last premium to be paid when your policy enters the final year, would be waived off.

The policy covers homemakers as well, though the sum assured is reduced.

High on premium

The premium cost would be better understood with an illustration. Let’s take the example of a 30-year-old working woman seeking ₹50 lakh vital care benefit (and₹25 lakh surgical care benefit). Further, it is assumed that she takes the regular premium payment option and seeks a cover for a period of 30 years.

There is a discount offer for the first-year premium alone. So, her annual premium for the first year (if purchased online) works out to ₹67,823 for the vital care benefit and ₹11,085 for the surgical care benefit. The total premium payable is thus ₹78,908. From the second year onwards till the 30th year, the total premium is ₹87,675 (₹75,358 plus ₹12,317).

All figures mentioned above include 18 per cent GST. Clearly the premiums are quite expensive for policyholders.

Should you buy the policy?

ICICI Prudential Life Wish does offer some unique and innovative features. However, the costly premiums are major dampeners for policyholders. The coverage too is a tad narrow as it is focused on women.

It is pertinent to note that riders taken with a regular health insurance policy cater to the same needs as this policy and they do so for much lower premiums, apart from being effective.

For example, ICICI Lombard’s Elevate health insurance, which we reviewed a few months ago, offers large covers with many unique and useful riders at lower premiums. A family of four with the eldest person being 40 years old can get a ₹3 crore cover for ₹56,235 (excluding GST) from the general insurer, while an unlimited sum assured will cost a little more with an annual premium of ₹60,781.

Such large sum assured from the ‘Elevate’ policy, offered at lower premiums, caters to all illnesses including critical ailments for women or men, and thus offers a better alternative to policyholders.