What Are The Benefits And Features Of The ABSLI Cancer Shield Plan?
ABSLI Cancer Shield Plan is a traditional health insurance plan that offers many beneficial features to the policyholder. Take a look at these features to get a better idea of how this cancer insurance plan can be of great help.
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Comprehensive coverage
One of the biggest concerns that people have when buying a cancer plan is the coverage. Understandably, many insurers may not cover advanced stages of cancer because of the higher risks involved. Alternatively, they may offer coverage for such major stages, but at a steep additional cost.
With the Cancer Shield Plan, however, you can put these worries to rest. This policy covers all stages of cancer - both early stage and major stage. This kind of exhaustive coverage also comes at affordable rates.
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High cover at an affordable premium
Worried that cancer insurance may be too expensive for you? The Cancer Shield Plan from Aditya Birla Life Insurance can put your worries to rest, because it offers you a substantial cover at extremely affordable premiums. For instance, you can get a cancer insurance cover of Rs. 10 lakhs for a policy term of 20 years for a premium of just Rs. 120 per month.*
The premium may vary slightly based on your age, gender, policy term and amount of coverage, but the bottom line is that the Cancer Shield Plan is highly affordable. Want to know how much premium you may be charged?
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Payouts on diagnosis
If the policyholder protected by the plan is diagnosed with any of the cancers covered by the plan, they receive the policy benefits guaranteed by the plan. Here's how the payouts are offered, based on the stage of the cancer diagnosis.
- In case the cancer is of an early stage, you can claim 30% of the sum assured.
- Later, in case of diagnosis of a major stage, you can claim the remaining 70%.
- If the initial diagnosis itself reveals a major stage of cancer, you can claim 100% of the sum assured
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Choice of plan options
The Cancer Shield Plan gives you two different plan options to choose from. Depending on the option you choose, the sum assured under your plan will either remain constant or increase over the policy term. The following plan options are available under this cancer insurance policy:
- Option 1: Level sum assured:
Here, the sum assured remains level or constant throughout the entire policy term. So, for instance, if the initial sum assured under the plan is Rs. 20 lakhs, it remains the same and does not change throughout the tenure of the policy.
- Option 2: Increasing sum assured:
Under this option, the sum assured increases by 10% on each policy renewal date. This occurs from the first policy anniversary to the tenth. Take a look at the table below to understand how this works.
Say you purchase the policy at the age of 25. The initial sum assured is Rs. 30 lakhs. So, each year, for the first 10 years, the sum assured under the plan will increase by Rs. 3 lakhs (i.e. 10% of Rs. 30 lakhs).
Policy anniversary (in years)
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Your age (in years)
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Sum assured
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0
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25
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Rs. 30 lakhs
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1
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26
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Rs. 33 lakhs
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2
|
27
|
Rs. 36 lakhs
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3
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28
|
Rs. 39 lakhs
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4
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29
|
Rs. 42 lakhs
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5
|
30
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Rs. 45 lakhs
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6
|
31
|
Rs. 48 lakhs
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7
|
32
|
Rs. 51 lakhs
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8
|
33
|
Rs. 54 lakhs
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9
|
34
|
Rs. 57 lakhs
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10
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35
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Rs. 60 lakhs
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So, by choosing this plan option, the sum assured has effectively doubled in 10 years.
5.
Income benefit
In addition to the financial burden of treating the disease, a cancer diagnosis can also affect a person's livelihood. They may not be able to work a regular job due to the illness. And this could affect their family's sustenance. The optional income benefit offered by the Cancer Shield Plan can help you here.
You can opt for the income benefit at the time of purchase. Under this option, a monthly income equal to 1% of the sum assured will be paid out in case of a major stage diagnosis. This income payout will continue for 5 policy years, even if the policy expires during that period.
For example, say 30-year-old Sanjeev buys a Cancer Shield Plan. The plan has the following particulars.
- Sum assured under the plan: Rs. 40 lakhs
- Policy term: 30 years
- Income benefit option: Chosen at the time of purchase
So, the policy will expire when Sanjeev attains 60 years of age. Say at the age of 58, he is diagnosed with major stage lung cancer. Since he has opted for the income benefit, he will receive 1% of the sum assured monthly, for a period of 5 years from the diagnosis.
In this case, he will receive Rs. 40,000 each month from the time of diagnosis - when he is 58 years old - till he is 63 years old. This payout will continue for the entire period even though the policy will expire when Sanjeev is 60 years old.
6. Premium waiver benefit
A cancer diagnosis can cause loss of income temporarily or permanently, and this may make it tough for patients to pay their insurance premiums during these critical times. So, upon early stage diagnosis, the Cancer Shield Plan gives policyholders the benefit of premium waivers. Here are the key details of this benefit.
- This benefit comes into effect when early stage cancers are diagnosed.
- Premium payments will be waived off for a period of 5 years, or for the remaining policy term, whichever is lower.
- This benefit will take effect from the next premium payment due date.
7.
Premium guarantee
The premium paid at the date of commencement of the policy continues to remain the same for next five years. However, after that period, the premium rates may be revised, provided the IRDAI offers prior approval.
Also, in case there's any revision in the premiums charged, you will be informed about this at least 3 months before the relevant due date for the revised premium. And such revised premium rates will also be valid for a period of 5 years from the renewal date.
So, effectively, once you have locked in a premium rate, you need not worry about any revisions for at least 5 years.
- Tax benefits
The Cancer Shield Plan is a health insurance plan, so it offers you tax benefits2 under section 80D of the Income Tax Act, 1961. The premiums you pay for your insurance are deductible from your total taxable income each financial year. You can claim this deduction whether you purchase for yourself, your spouse, or kids, or for your parents. Here is a summary of the deduction limits applicable under this section.
Scenario
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Maximum amount of deduction allowed for policies taken for yourself, spouse or children
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Maximum amount of deduction allowed for policies taken for parents
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- You have purchased the policy for yourself (or your spouse or kids)
- You (or your spouse) are below 60 years of age
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Rs. 25,000
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NA
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- You have purchased the policy for yourself (or your spouse or kids), and for your parent
- You and your parent are both below 60 years of age
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Rs. 25,000
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Rs. 25,000
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- You have purchased the policy for yourself (or your spouse or kids)
- You (or your spouse) are above 60 years of age
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Rs. 50,000
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NA
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- You have purchased the policy for yourself (or your spouse or kids), and for your parent
- You and your parent are both above 60 years of age
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Rs. 50,000
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Rs. 50,000
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See how the ABSLI Cancer Shield Plan can be highly beneficial to you? If you're interested in purchasing this cover, simply click the link below to secure your future.