Updated: Aug 26, 2022
You've probably never had to utilize critical illness insurance if you're lucky (sometimes called catastrophic illness insurance) or maybe you've never heard of it before. However, if you are diagnosed with cancer, have a heart attack, or have a stroke, critical illness insurance may be the only thing that keeps you from going bankrupt. Many people believe that a basic health insurance plan will cover all of their needs, but the excessive costs of treating life-threatening illnesses are usually more than any plan will cover.
Medical emergencies such as heart attacks, strokes, and cancer are covered by critical illness insurance. Because these types of catastrophes or diseases frequently result in higher-than-average medical expenditures, these policies give out cash to assist cover those costs when regular health insurance falls short. These insurance policies are reasonably priced. However, the situations in which they will provide coverage are usually confined to a few illnesses or crises.
Have medical insurance, what's the need of a critical illness policy?
There is never nearly enough health insurance, it is true. Because health problems are so unpredictable, no matter how much forethought and cautious planning you put in place, you are still susceptible to a staggering array of illnesses, not to mention accidents. Therefore, it is sage to have an appropriate health insurance coverage to give you financial security against such maladies. However, a fundamental health insurance plan might not be enough to assure that you have adequate medical coverage because medical inflation is continually on the rise. This is why getting a critical illness insurance policy is wise. Here are some justifications for choosing a critical illness insurance plan.
What is covered under the insurance policy?
Though the standard conditions covered by the policy differ from one policy to the next, the following are some of the key ailments that are covered by all policies:
Heart Attack (Myocardial Infarction)
Major organ transplantation
Primary Pulmonary Arterial Hypertension
Benign Brain Tumor
End Stage Liver Disease
Multiple Sclerosis Aorta Graft Surgery Multiple Sclerosis
Aorta Graft Surgery
Benefits of a critical illness policy:-
You will receive a number of important benefits from purchasing a critical illness coverage, some of which have been covered here.
Financial Support When You're In Need: A critical illness plan acts as a dependable companion when you're in need. A critical illness diagnosis can result in not only severe medical harm but also severe mental distress and financial problems. It might be challenging to make ends meet, much less be able to pay your medical expenses, if the cost of your medical care coincides with the loss or reduction of your monthly income. Through the Lump-sum payout of the sum assured, a critical illness health insurance plan may prove to be of considerable help in such a situation.
Covers a Wide Range of Critical Illnesses: We offer critical illness insurance policies in India that provide coverage for a variety of serious conditions, such as cancer, kidney failure, blindness, and paralysis. You therefore have comprehensive coverage against a variety of serious illnesses with just one plan. You can profit from the sum assured under our critical illness plan rather than having to fork over a sizeable quantity of money for the expense of treating a critical illness.
Serves as a Replacement for Your Lost Income: Any person would be shocked to get a serious disease diagnosis, but if you are your family's only source of income, it might affect you more severely. During the course of the subsequent treatment, the possibility of losing your capacity to work and earn might put a great deal of financial strain on your family and home. But if you have a critical illness policy or a life insurance policy with a critical illness rider, you can be confident that you will get a benefit payment that will replace your lost source of income.
Offers Support in Addition to Your Health Insurance Plan: In addition to your normal health insurance policy, a critical illness health insurance plan enables you to have additional financial support. Additionally, it compensates for the absence of critical illness coverage in the latter. As a result, if you are diagnosed with a serious illness, you will be better equipped to pay the associated medical and other costs.
Affordable Premiums: The idea that a critical illness insurance policy is out of the price range of the majority of individuals is untrue. In actuality, such coverage is offered for a reasonable and economical price that is much lower than the value of the benefits that are guaranteed under the plan. Choosing a critical illness health insurance plan is, thus, a wise choice.
Tax Benefits: A critical illness plan provides you with enough coverage against a number of critical illnesses as well as a number of tax advantages for the premiums you pay for the plan. You may deduct up to Rs. 25,000 from your taxable income for payments made for health insurance premiums under Section 80D of the Income Tax Act of 1961. Senior citizens are eligible for a deduction of Rs. 50000.
How does it work?
The policy works on a simple premise: if you are diagnosed with one of the specified severe illnesses, the insurer will pay you the money insured in a flat payment. Aside from medical costs, the money can be used to pay loan EMIs, household bills, and children's school tuition, among other things. Even if you need to travel abroad for more medical care, you can do so with this money. Overall, this sum serves as a replacement for income and can be spent anyway you like.
Considerations to Make When Choosing a Critical Illness Insurance Policy :-
You need to take a few key elements into consideration before choosing an essential insurance coverage. Here are a few of these elements:
Sum Assured - You should make sure your critical illness plan has enough coverage to meet your needs for health insurance. This is only achievable if you are clear about how much critical illness health insurance you require and what the policy's amount assured should be.
The Nature of the Plan - In India, there are two ways to get critical illness insurance: as a stand-alone policy or as an add-on to an existing life insurance or health insurance policy. As a result, you must choose the type of critical illness insurance that you want. Even if the critical disease lists for the two are comparable, a solo critical illness policy often offers more coverage than a critical illness rider.
Sub-Limit - Check your critical illness plan's sub-limits for the various expenses covered by the plan. Surgery and medical testing typically have lower restrictions. To determine how much actual coverage you have for a certain head of expense, you must be aware of these sub-limits.
Inclusion and Exclusions - You wouldn't go into a vegetarian restaurant and order meat, now would you?! Similar to how it's necessary to know what kind of cuisine a restaurant you're going serves, it's crucial to understand what is and isn't covered by your critical illness health insurance. As a result, you must study the policy wordings very carefully and attentively. You should pay close attention to the list of important critical illnesses offered.
Age - Due to the differing health risks associated with each age group, critical illness plans frequently have different coverages and prices for those in each. Because of this, older insurance policies offer greater coverage and higher premiums than plans for relatively young people. Your age group and your needs for health insurance will determine which critical illness insurance is appropriate for you.
Maximum Renewal Age - It is advisable to examine this ceiling before choosing a plan because certain critical illness insurance policies have a maximum age for renewals. Selecting a plan with lifetime renewals is advised.
Waiting Period - A critical illness plan has a waiting term, which prevents you from using the plan's benefits before the specified period has passed. For this reason, before purchasing a plan, make sure to look at the waiting period that is listed.