ICICI Pru Life saver (ULIP Health plan) vs Traditional Mediclaim (Health insurance plan)

POSTED BY Navneet Surana ON November 30, 2012 2:31 pm COMMENTS (3)

I’ve done a great deal of evaluation for buying a health plan for self and spouse. Evaluated between Apollo, Max Bupa, Star, TATA Aig. Suddenly came across a product ‘Life Saver’ from ICICI Pru which is ULIP based plan. Part of premium goes into health insurance cover and part of it gets invested in market with varurious options to generate funds. These fund can be utilised for claiming medical bills from time to time post 2 years. Pros of this instrument – a) Coverage till 75 yrs of age b) Fixed premium as like term plan, so you are saved the hassle of inflation year on year. Cons – High premium (approx 50% more, Rs 15000/- for 2A for 5lacs SA) then traditional mediclaim proposals. Policy discontinues on the death of the primary policy holder.

Now the dilemma –

1) Is it a good option to go for ICICI Pru life saver policy for health insurance vis a vis mediclaim policies?
2) Will we be able to get portability in future from this instrument to traditional mediclaim policies.
3) Which is a good mediclaim health insurance policy? My analysis shows Apollo Munich is a good option. Plan to take for self and spouse.
4) Should I go for family floater or individual plans?
5) Which are the key factors for deciding the plan and also the value of plan.

My family details – Me and spouse both working professional and have two kids (11 years & 5 yrs). We have basic coverage from our companies. Age 38 years.

3 replies on this article “ICICI Pru Life saver (ULIP Health plan) vs Traditional Mediclaim (Health insurance plan)”

  1. Navneet Surana says:

    Hi Ramesh,
    Thanks. But looking at fixed premium vs fluctuating premuim is it not better to go for ULIP saver insurance? In normal medclaim which are other good options in terms of coverage? Ofcourse if going for Apollo Munich , better to go for Restore..
    Rgds,
    Navneet

    1. Ramesh says:

      You need to understand that the underlying fluctuating premium gets deducted from the much higher fixed premium only. So it is not that you are not paying that fluctuating premium.

      Also, in my opinion, any complication like the Restore thing is not usually worth the extra premium.

  2. Ramesh says:

    1. No.
    2. No. Since you cannot port Ulip policies.
    3. Apollo is a simple and reasonable plan. Their basic one. The Restore one is slightly more complicated.
    4. Since you already have basic coverage, go with a family floater.
    5. Key factor= no sublimits or loading, long coverage age, reasonable premium, and good quality service history.

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