PersonalFN
Jun 29, 2016 · 3 min read

All You Wanted To Know About StarFirst Combi Plans

The one thing that every individual has long urged for is a product that takes into account the benefits of both life and health insurance. It eliminates the hassle of purchasing two separate insurance policies (life insurance and health insurance).

(Source: Website of IndiaFirst Life Insurance Company Ltd)
To address this growing concern, IndiaFirst Life Insurance Company Ltd. and Star Health and Allied Insurance Company Ltd. have joined hands to offer StarFirst Combi Plans — a suit of 5 plans offering a combination of health and life insurance benefits.

The key features include life cover for the policyholder along with a health cover (for self as well as family). The sum assured ranges between Rs 1 lakh-Rs 15 lakh for health cover and from Rs 3 lakh-Rs 9 lakh for life cover.

StarFirst Combi Plans will be available in 5 variants — StarFirst Comprehensive, StarFirst Classic, StarFirst Care, StarFirst Delite, and StarFirst Optima.

The companies are yet to update the policy documents of four plans (StarFirst Optima is present) on their respective websites and so we were in a position to only review StarFirst Optima.

Here are some of the key features of StarFirst Optima:

  1. Protect the entire family with health cover (Maximum 2 Adults and 3 Children) and life insurance cover.
  2. Health insurance coverage available in the plan for a new born child from the 16th day after his/her birth (hospitalisation expenses are subject to a limit of 10% of sum insured or Rs 50 thousand, whichever is lesser)
  3. 405-day care procedures covered in the plan.
  4. You get the shorter “no-medical” route up to 49 years, if your age is less than 50 years
  5. Benefit from automatic restoration of health insurance coverage up to 100 % of the sum assured, once during the tenure of the policy period on exhaustion of the sum insured.
  6. No more worries of running out of cover as you get recharge triggers when claimed amount is insufficient.
  7. Cumulative bonus up to 35% is available for claim-free years.
  8. Tax benefits under Section 80 (D) and Section 80 (C) are available.
  9. The life insurance policy offered under the plan is a pure term insurance policy. So it will not cover any loan or surrender benefit.
  10. The maximum life cover available under this plan is Rs 9 lakh.

PersonalFN’s views:
Every individual should purchase a pure term insurance policy based on financial goals and expenses. When buying insurance, it is best to not blindly follow the advice offered by insurance companies, agents, family members and friends. Don’t even buy insurance by assessing which product is performing well in the markets. Buy insurance only when you know that there is a need for it. First analyse what your expectations are from the insurance policy.

Having an optimal life insurance coverage is integral to one’s financial planning as life is made up by uncertainties and contingent events occur when we least expect them.

Although the idea of providing a combination of life and health insurance seems new and innovative, it falls short on the amount of life insurance coverage. A maximum life insurance cover of Rs 9 lakh offered by StarFirst’s Optima Plan is nowhere close to the recommended life insurance cover any policyholder should have and so should be avoided at all costs. Given the circumstances, it is wise to purchase two separate policies (life insurance and health insurance) optimally covering life and health insurance needs.

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