As far as costs go, this policy charges 14-19 per cent a year as Premium Allocation Charges for premiums under Rs 10 lakh in the first two years. This amount falls to 9 per cent for premiums between Rs 10 lakh and Rs 99.99 lakh and 1.5 per cent for over Rs 1 crore.

That means the PAC on Rs 9 lakh premium will be Rs 1.35 lakh in the first two years. It will fall to 3 per cent from the third to fifth years. There will be no charge from year six onwards. Also, there will be an additional 1.5 per cent on top-up premiums. Besides PAC, there are morbidity charges (for the health cover and hospitalisation benefits), fund management charge, surrender charges, service tax and others.

Also, the benefits for pre-existing diseases are capped or reduced under this cover. There are other various limits, including ICU benefit in a year is capped at Rs 90,000 only. Similarly, if a policyholder gets confined to ICU, the yearly and lifetime limits on DHB and ICU fall accordingly.

Another interesting point is that the premiums are only guaranteed for three years. After this, they are subject to review depending on the morbidity experience.

Further, there is no death benefit if any member covered passes away.

This is not a cashless policy meaning that you will have to cough up the initial expenses. And most importantly, in case the policy lapses due to non-payment of premium on or before the third year, it is converted into an Investment Only Policy. All the health coverage benefits under the policy are lost.

As is obvious, this policy is quite expensive and cannot be the primary means of cover. If you are looking for daily hospital benefits and surgical benefits, opt for a simple Mediclaim from general insurance companies. Also, review whether the same cover can be had elsewhere by paying a lower premium. You must clearly understand the benefits and shortcomings of every policy before you sign on the dotted line.