Key Features

Like other critical illness plans, the Star plan too is a benefit plan that provides a lump sum payout on the first diagnosis of a listed critical illness. Here are the main features of the plan.

• This is an individual policy and the policy term can be 1, 2 or 3 years. This cover is available to persons aged between 18 and 65 years.
• The minimum sum insured is Rs. 5,00,000. This can go up to Rs. 25,00,000 in multiples of a lakh. 
• It comes with standard exclusions such as illnesses arising from alcoholism, intentional self-injury, anything arising out of activities that are in breach of law, war etc. The policy also excludes pre-existing diseases (for which treatment was received or was diagnosed in the 48 months prior to the effective date of the policy).
• The initial waiting period on this policy is 90 days and the required survival period is 15 days. 
• A pre-policy medical may be required for persons over the age of 50 or for those with adverse medical history.
• The premium can be paid in quarterly or half yearly installments but this will attract a loading of 3% and 2% respectively.

For this policy, the 37 critical illnesses covered are grouped into 4 categories:

1. cancer related conditions, 
2. heart related conditions, 
3. brain and nervous system related conditions and major organs and 
4. other conditions. 

The plan will make a maximum of one lump-sum payout per category in a lifetime. It allows for one claim under each of the 4 categories as long as there is a waiting period of 12 months between 2 claims and there is only one claim per policy year. 

If a claim has been made for a critical illness, the cover will be renewable for critical illnesses under the other 3 categories. If a claim is made for multiple critical illnesses at the same time, then a payout will be made only towards one group.

It comes with lifelong renewability as long as there is at least one section where no claim has been made. 

#1 Sum Insured can go up to 400%

This plan splits the covered critical illnesses into four groups and allows one claim per group per lifetime as long as there is a minimum of 12 months in between two claims and there is only one claim per policy year. Each claim is eligible for a 100% payout as long as the above criteria are met. 

This means that the payouts under this plan can go up to 400% of the sum insured and we think that this is the biggest positive of this plan.

#2 Structure not over-complicated

This plan is not a plain vanilla critical illness cover where the cover ceases once a claim has been met. But its structure that places the 37 covered critical illnesses in four buckets is still simple and useful to the buyer.