Under this option, Indexed Sum Insured would become payable. Indexed Sum Insured is Base Sum Insured increased by 10% per annum (simple) starting first policy anniversary, for each completed ‘claim free year’. Indexation would only be applicable till date of diagnosis of critical illness or till Indexed Sum Insured reaches 150% of Base Sum Insured. At no point of time Indexed Sum Insured would be different for minor and major stages rather it will become constant after the first claim is made under the policy.
Under this option following benefits are payable:
Upon diagnosis of a Minor Stage Condition/Illness:
-
Lump sum payment of 25% of Indexed Sum Insured becomes payable immediately; plus
-
Monthly Income of 1% of Base Sum Insured is payable every month for next 6 months where first payment made immediately with lump sum payment
Upon diagnosis of a Major Stage Condition/Illness:
-
100% of Indexed Sum Insured less 25% of Indexed Sum Insured, if paid earlier under Minor Stage condition, becomes payable immediately
-
Monthly Income of 1% of Base (Initial) Sum Insured become payable for 5 years, where first payment made immediately with lump sum payment
On diagnosis of critical illness under the policy, Premium would be waived off for next 3 Policy years. This benefit is available only one time during the lifetime of the Policy.
In case a claim is made under both minor and major categories, then the Monthly Income benefit will be paid under each of the categories and can continue to be paid together. In such case Monthly Income under minor will continue to be paid for 6 months, along with the Monthly income payable in case of claim under Major category for 5 Policy years payable monthly.
In case Life Assured dies, after the Monthly income under the plan has started, the Monthly Income Benefit would continue to be paid to Nominee/legal heirs of Life Assured.
Example of Indexation:
-
Plan Option: Cancer Shield
-
Benefit Option: Care+
-
Base Sum Insured: 10,00,000
-
Policy Term: 10 Years In case of a minor claim during 3rd Policy Year, following will be the Sum Insured Indexation
|
Policy Year |
Indexed Sum Assured |
|
1 |
10,00,000 |
|
2 |
11,00,000 |
|
3 |
12,00,000 |
|
4 |
12,00,000 |
|
5 |
12,00,000 |
|
6 |
12,00,000 |
|
7 |
12,00,000 |
Benefit:
Minor Claim during 3rd Policy Year:
Lump sum Benefit: 25% of Indexed Sum Insured i.e. 25% of 12,00,000 = Rs. 3,00,000
Monthly Income: 1% of Base Sum Insured i.e. 1% of 10,00,000 = Rs. 10,000 per month for next 6 months Waiver of Premium (WoP): Premium for next 3 Policy Years with reference to date of diagnosis of critical illness will be waived off
Major Claim during 7th Policy Year:
Lump sum Benefit: 75% of Indexed Sum Insured i.e. 75% of 12,00,000 = Rs. 9,00,000
Monthly Income: 1% of Base Sum Insured i.e. 1% of 10,00,000 = Rs. 10,000 per month for next 5 Years. Policy will terminate thereafter.
