Aditya Birla Sun Life Insurance Cancer Shield Plan – Review, Features and Benefits

The word cancer can strike fear into anybody’s mind. Simply because this life-threatening disease not only adversely impacts the body but also puts one’s financial health under tremendous strain. With rapidly changing lifestyles, the risk of cancer is growing at an alarming rate in India.

The best way to fight cancer is to prepare for it. Like all the uncertainties in life now you can plan for cancer at every stage with “Aditya Birla Sun Life Insurance Cancer Shield Plan“.

Features of this Policy –

• This policy covers all stages of Cancer i.e. Early Stage of Cancer and Major Stage of Cancer
• This policy has an option to choose the level or increasing cover
• Option to receive monthly income for 5 policy years on the diagnosis of Major Stage of Cancer
• Waiver of premium for 5 years on the diagnosis of Early Stage of Cancer
• There is no loan facility available under this policy
• Tax Benefits as per Section 80D of the Income Tax Act, 1961 as per current tax laws

Benefits under this Policy –

a) Policy Benefit –

• Early Stage of Cancer – On diagnosis of Early Stage of Cancer, 30% of the Sum Assured on Illness will be paid.
• Major Stage of Cancer – At the Major Stage of Cancer, 100% of the Sum Assured on Illness less any previously paid claim for Early Stage of Cancer under the policy will be paid.

Sum Assured on Illness is the highest of the following –

• 10 times the Annualized premium; or
• 105% of Total Premiums Paid till the date of a valid claim; or
• Effective Sum Assured

Note – The only illness covered under this plan is Cancer.

Annualized Premium – It is the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums, and loadings for modal premiums, if any.

Total Premiums Paid means a total of all the premiums received, excluding any extra premium, any rider premium, and taxes.

b) Premium Waiver Benefit –

Once a claim under the Early Stage of Cancer Benefit is approved, all future premium payments for the policy will be waived for lower of 5 years or remaining policy term, starting from the next premium due date following the date of diagnosis of the Early Stage Cancer.

The coverage for Major Stage of Cancer under the policy will continue until the policy terminates. This benefit will be effective, once the investigations relating to the Early Stage of Cancer are completed and the diagnosis of cancer is confirmed.

c) Income Benefit Option –

The insured will have an option to choose this benefit at policy inception only and once chosen cannot be opted out. Under the Income Benefit Option, a monthly income equivalent to 1% of the Sum Assured on Illness would be paid out once a claim for Major Stage Cancer has been admitted.

This monthly income benefit will be payable for a fixed period of the next 5 years even beyond the policy expiry date. In case of the death of the policyholder, the nominee will continue to receive the income benefit.

d) Sum Assured Options –

• “Level Sum Assured Option” – Your sum assured chosen remains level with the Effective Sum Assured equal to 100% of the initial sum assured throughout the entire policy term.
• “Increasing Sum Assured Option” – The Effective Sum Assured in the first year will be equal to 100% of the initial sum assured. Thereafter, provided any claim event has not occurred, the Effective Sum Assured will increase by 10% of the initial sum assured on each policy anniversary starting from the first policy anniversary till the tenth policy anniversary.

e) Death/ Maturity/ Surrender Benefit –

There is no Death, Maturity, or Surrender benefit payable under this plan.

Eligibility Criteria of the Policy –

When can the Policy terminate?

The plan will terminate at the earliest of the following:

• The date when a claim for Major Stage of Cancer is paid provided Income Benefit Option has not been opted;
• The policy expiry date; or
• The date when the last installment is paid if the Income Benefit Option is chosen; or
• The date on which the reinstatement period ends after your policy has been lapsed; or
• On cancellation of the policy by the policyholder; or
• On the date of intimation of death of the Life Insured

Is there any waiting period in the policy?

A waiting period of 180 days from the Policy Commencement Date or from the date of reinstatement of the policy is applicable for all benefits payable under this coverage. If a lapsed policy is revived within 60 days from the first unpaid premium due date, only the remaining part of the waiting period will apply.

If a lapsed policy has revived after 60 days from the first unpaid premium due date, a waiting period of full 180 days will apply afresh.

Is there any survival period in the policy?

There is no survival period in the plan in order to be eligible for claim pay-outs.

Is there any premium rates guarantee in the policy?

Premium rates are guaranteed for a period of five years

Can I cancel the policy if I didn’t like its terms and condition?

Yes, the policyholder can cancel the policy within 15 days  (30 days in case the policy is issued under the provisions of IRDAI Guidelines on Distance Marketing of Insurance products) from the date of receipt of the policy stating the reason for cancellation. This period is known as the Free Look Period.

Once the company receives written notice of cancellation together with the original policy documents, provided you have not made any claims during the free-look period, you shall be entitled to receive the following –

• A refund of the premium paid less any expenses incurred by us on medical examination and the stamp duty charges and;
• Where the risk has already commenced and the option of return of the policy is exercised by the policyholder, a deduction towards the proportionate risk premium for the period on the cover or;
• Where only a part of the risk has commenced, a deduction of such proportionate risk premium commensurate with the risk covered during such period.

Is there any grace period and lapse in the policy?

If you are unable to pay the premium by the due date, then the company will give you a grace period of 30 days during which time all benefits under your policy will continue. If you do not pay the entire premium including the revised premium within the grace period, then all benefits under the policy will cease immediately and the policy will be deemed lapsed. The lapse date is the date the first unpaid premium was due.

Can the lapsed policy be revived?

The lapsed policy can be reinstated for its full coverage within five years from the first unpaid premium due date. This can be done by paying all outstanding premiums together with interest as declared by the company from time to time.

If a lapsed policy is revived within 60 days from the first unpaid premium due date, only the remaining part of the waiting period will apply. If a lapsed policy is revived after 60 days from the first unpaid premium due date, a waiting period of full 180 days will apply afresh.

Exclusion under the Policy –

The benefits under this plan shall not be payable under any stage of Cancer if the covered conditions result directly or indirectly from any of the following causes –

a) Pre-Existing Disease – “Pre-existing Disease” means any condition, ailment, injury or disease –

• That is/are diagnosed by a physician within 48 months prior to the effective date of the policy issued by the insurer or its revival (for policies revived with an effective date of revival on or after 60 days from the due date of the first unpaid premium), whichever is later;
• For which medical advice or treatment was recommended by, or received from, a physician within 48 months prior to the effective date of the policy or its revival (for policies revived with an effective date of revival on or after 60 days from the due date of the first unpaid premium), whichever is later;
• A condition for which any symptoms and or signs if presented and have resulted within three months of the issuance of the policy or its latest revival date, whichever is later, in a diagnostic illness or medical condition. This exclusion will not be applicable to conditions, ailments or injuries or related condition(s) which are underwritten and accepted by an insurer at inception.

b) For any medical conditions suffered by the Life Insured or any medical procedure undergone by the Life Insured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS-related complex or infection by Human Immunodeficiency Virus (HIV).

c) For any medical condition or any medical procedure arising from the donation of any of the Life Insured’s organs.

f) For any medical conditions suffered by the Life Insured or any medical procedure undergone by the Life Insured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug abuse.

g) For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive, or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature

h) Other Conditions –

• Early Stage Cancer benefits can only be claimed once during the policy’s lifetime.
• If the Life Insured claims for different stages of the same Cancer at the same time, the benefit will only pay the higher claim which is admitted under the policy.
• If there is more than one Cancer diagnosed in an event, the Company will only pay one benefit. That benefit will be the amount relating to the stage of Cancer which has the highest benefit amount.

Conclusion –

So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.