Private life insurers have brought innovation in the industry by unveiling unit-linked products. They, however, have not launched an exclusive insurance cover for women. Only the state-owned Life Insurance Corporation offers an exclusive women policy, Jeevan Bharati, which covers critical illness.
Bajaj Allianz Life Insurance is expected to come out with a new policy catering to women, the first of its kind by private insurers.
L Ajith Kumar, senior divisional manager-Tamil Nadu and Kerala, LIC, says Jeevan Bharati is a complete insurance plan for women considering it as retention of savings, pension, and financial solutions to medical problems. The policy covers critical illness for female and also covers a child born with congenital disability.
Under critical illness breast cancer, ovarian or fallopian cancer, cervical cancer, uterine cancer and vaginal cancer are covered. Women of 18 years to 50 years can opt for the policy. A benefit equal to the sum assured (subject to a maximum of Rs 200,000) will be available on the occurrence of any of the above mentioned critical illnesses.
It is interesting to note that insurers charge a lesser premium on life cover for women compared with men as the risk of mortality is higher in the former. If a person takes a plain vanilla life cover, the policyholder will have to take a rider for critical illness cover with additional premium charges.
For example, a 30-year-old woman, who avails of a Rs 100,000 cover for a term of 20 years under Jeevan Bharati, will pay a higher premium of Rs 7,555 per annum compared with a simple moneyback policy of Rs 6,480 per annum. Kumar says this will work out to be an extra Rs 89.5 premium each month in the case of Jeevan Bharati which comes with certain distinct advantages.
Accident benefit will be provided for an additional premium of Rs 1 per thousand of sum assured. A maximum limit of Rs 25 lakh (Rs 2.5 million) sum assured (death owing to accident), available under other LIC policies, is also provided under this policy.
A yearly bonus will also be declared to the policy holder depending on the market rate and a flexibility in payment of premium is also available (like advance payment of premiums).
If suppose the premium is paid for the first two years and the lady is not able to pay subsequent premiums owing to uncertain circumstances, the risk cover for full sum assured will continue for three years from the due date of the first unpaid premium. The policy will, however, not cover accident benefit, critical illness and congential disability during the period.
Kumar, however, points out that the response for Jeevan Bharati, launched on March 8, 2003 (International Women's Day), has been lukewarm. He attributes the reason to marketing glitches and lack of awareness among women about the product.
Private insurers are hesitant about offering such a product as it would require a huge database and research facility and profitability of the product is yet to be studied, Kumar adds.
Jeevan Bharati, available in 20-year and 15-year terms, will offer 20 per cent of the sum assured at the end of five years, 20 per cent at the end of 10 years, 20 per cent at the end of 15 years and 40 per cent at the end of the policy period.
Jeevan Bharati, however, does not cover the following:
All tumours that are described histologically as pre-malignant and all tumours that are described histologically as Carcinoma in Citu and dysplasia of the cervix.
Policy will not be available to females who already have a child with congential disability.
The policy has to be in-force for a minimum of six months in the case of critical illness and one year in the case for the birth of a child with congenital disabilities.
Made for each other
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Life cover continues for three years despite non-payment of premium
- Flexibility to pay premium in advance and avail premium rebate of 4 % per annum
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Option to receive maturity proceeds in the form of an annuity
Female critical illness cover: A benefit equal to the sum assured, subject to a maximum of Rs 200,000, will be available on the occurrence of any of the following critical illnesses - breast cancer, ovarian/fallopian tube cancer, cervical cancer, uterine cancer, vaginal/vulval cancer
Congenital disability benefit: If a child born to the policyholder, suffers from any of the congenital disabilities listed below, a benefit equal to 50 per cent of the sum assured subject to a maximum of Rs 100,000 will be available for two children.
The list of congenital disabilities are Downs Syndrome, spina bifida, tetralogy of fallot, oesophageal atresia & tracheo-oesaphageal fistula, anal atresia, imperforate anus, cleft palate with or without cleft lip
