Combo of Health and Life Insurance Alright: IRDA
IRDA, The Insurance Regulatory and Development Authority, gave some clues of combining a pure term plan and a health policy. The policy correctly named as 'Health plus Life Combi Product', is a combination of life cover along with health insurance.
This policy will provide sickness benefits; medical, surgical or hospital expenses benefits, whether in-patient or out-patient, on an indemnity or reimbursement basis from Health insurance side and the life insurer will offer a pure term product.
Both the life and non-life insurance companies can together offer this policy.
"It is envisaged that the proposed product class (will) enhance the penetration of personal lines of insurance business with a wider product choice to policyholders", the organization said while issuing the guidelines. Under the existing structure, non-life insurers do not provide pure life insurance products.
The policy subscriber will now get more choices in a single policy, therefore rightly said it is an "umbrella of a single product". This would also benefit the insurance companies by penetrating deep in the country.
