Women get discounts on term plans, critical illness

Specific covers in health insurance policies give more benefits to women

Today, with more women taking up jobs and even running the household as single parents, protection of their life and health is as important as that of a husband, father or brother. Ahead of International Women’s Day on March 8, we look at some women-specific plans to check if they offer real value.

Health insurance

In health insurance there are no women-specific plans per se. Mostly floater plans get sold that cover the entire family. “Data show that it is the male member who buys insurance for the entire family. Even single members who are covered are predominantly male,” says Shreeraj Deshpande, head, health insurance, Future Generali India Insurance.

The basic requirements for women include coverage for maternity and specific cancers like uterine, breast, vaginal, etc. While choosing a policy, women should look at the waiting period. It is usually four years for maternity benefit, though some policies may reduce it to two years. Waiting periods are also stipulated for specific procedures like hysterectomy, ovarian cyst, fibroids, etc. 

In case of maternity coverage, check when the coverage for the child starts. Usually it begins when the child is three months old, though some offer coverage from day one. Future Generali’s Health Total policy, for instance, covers the child from day one within the mother’s sum assured. The coverage is free of charge till the child becomes a year old, after which you need to add the child separately.

Bajaj Allianz General Insurance has a woman-specific critical illness (CI) plan that covers congenital defects of the child, usually not covered by a normal CI policy. “The premium is comparable, considering it provides additional benefits,” says Dhruv Sarin, head of health insurance, Policybazaar.com. “Single-payment CI plans do have different premiums for men and women. A CI plan will typically be cheaper for women than for men, because the risk perception is different. Companies like Bajaj Allianz offers CI plans that are more women-specific but the differentiation is in terms of features, and not pricing,” he says. 

Another CI plan with unique features is Tata AIG’s Wellassurance, which offers a proportion of the premium for reconstruction. “Currently, it includes facial reconstruction in case of an accident but in future, it could include coverage for breast reconstruction for cancer patients,” says Sarin. “A normal indemnity health cover may not cover reconstruction because it may be considered a cosmetic procedure.” Whether a woman should buy such gender-specific plans depends on her life stage, medical history and family background. Bajaj’s plan, for instance, would be more useful to a younger woman and less to those past the child-bearing age. 

Typically, the premium on CI cover for cancer goes up for women, as the incidence of cancer is higher.

According to Ashish Mehrotra, managing director and chief executive officer, Max Bupa Health Insurance, women should buy health insurance early in life, say, by 30 years. “This is to avoid serving out the waiting period at a much younger age and there is little risk of being refused a policy at an older age or buying a policy with lots of exclusions,” he says. 

While calculating the coverage amount, take into account the future costs of common procedures and not just what it is today. Also, consider the strength of the hospital network, absence of sub-limits, and coverage for critical illnesses and maternity. Aditya Birla Health Insurance offers a cheaper premium for women policyholders in indemnity-based plans. The company has based it on international differential of incidence of illness. 

Life insurance

Premiums for women’s life insurance policies are lower. “Women have higher longevity and they live three to four years longer than men, so we offer them discounts. But, any term or unit-linked plan available for men can be offered to women. While purchasing a life insurance plan, women can opt for women-specific critical illness coverage,” says an official from Aegon Life Insurance. 

Aegon offers a women CI rider that covers pregnancy complications and women-related organ cancers like uterus, ovaries, etc. It also offers coverage for a housewife up to ~1 crore, or up to 50 per cent of the husband’s sum assured. “A woman whether she is working or not should have life coverage because she is contributing to the economic value by taking care of the household and children. We offer this policy even if the husband has life cover from another company,” the official adds.

HDFC Life Insurance offers Smart Women, a unit-linked insurance plan designed for women. It offers waiver of three annual premiums — in case of childbirth with congenital disorder, pregnancy complication and cancer of female organ or death of spouse. “Do a need-based analysis before you buy life insurance and ensure that the amount is sufficient. Review the amount regularly and increase it if required,” says Sujoy Manna, vice president-product, HDFC Life.

Women make the mistake of buying endowment plans, which offer very low returns of two-four per cent, says Mimi Parthasarathy, managing director, Sinhasi Consultants. “Pure-term plans are the cheapest form of protection. They offer coverage till 75 years. That should be the primary objective of insurance. For investment, women should invest in equities for the long term, through systematic investment plans,” she adds.