Critical Illness Cover – Things You Need to Know!

Unforeseen situations, a poor lifestyle, and stress all contribute to life-threatening medical disorders. Acute illnesses can affect anyone at any age. At this point, the critical illness cover comes in handy, as standard health insurance policies do not cover critical illnesses like cancer, heart attack, and paralysis, to mention a few.

 By buying critical illness insurance, you will not have to fear your medical costs if you are diagnosed with any of the critical illnesses covered by the plan.

Who Should Take Critical Illness Insurance Cover?

Given today’s hectic lifestyle, no one is immune to crucial ailments such as cancer, stroke, and so on. As a result, the majority of us should invest in critical illness insurance. To be more specific, the following categories can certainly benefit from this cover.

  • Critical illness family history: Critical illnesses are many times inherited. This indicates that persons who have a family history of severe disease are more likely to suffer from it. For instance, if your parents have Hypertension, you are more likely to develop it as well. And, if that happens, don’t you think critical illness insurance coverage could come in useful?
  • High-stress jobs: It has been discovered that those who work in high-pressure and challenging workplaces are more likely to get a serious illness. If you can identify with this remark, critical illness insurance is a must.
  • Senior citizens: Failure to obtain senior citizen health insurance and critical illness coverage might result in a large hole in your wallet, with you spending a large portion of your hard-earned and saved money on treatment fees. Shelling out such a huge amount at this age could cause quite a financial, and subsequently mental stress.
  • Breadwinners: The responsibility of the sole earner in a family is critical. If anything really happens to them, it will have a ripple effect on the entire family, affecting not only the present but also putting the future at stake. To protect oneself from these terrible financial situations, one should obtain critical illness insurance for them as the only breadwinner of the household so that the family is protected in the event of their death.

How Critical Illness Insurance Works?

1.     List of illnesses: Your policy includes a list of important illnesses. You can only file a claim if you are diagnosed with one of the serious illnesses listed on your policy.

2.     No General Medical Reimbursement: This lump sum payment does not cover your usual medical expenses. It is a one-time payment made to you when you submit medical documentation proving that you suffer from a specified critical disease.

3.     Survival Period: There is a minimal amount of time you must survive after contracting a specified critical illness. It might range between 14 and 30 days.

4.     No Bills Required: If you are diagnosed with a designated serious disease, the insurer will pay you a fixed amount of money.

5.     Lost Income: You can utilize this set amount to make up for lost income or to pay for uninsured medical bills.

Critical Illness Insurance Features

  • Simple claim process: Once the diagnosis is made, the claim can be readily made and processed. To guarantee you get the correct critical illness insurance cover, consider the insurance provider’s claim-settlement ratio.
  • Cashless facility: Among the most substantial advantages of critical illness coverage is that the patient receives prompt treatment. In other words, the policyholders can receive care anywhere at the hospital in the networks for free. You can stop making emergency cash fees if you seek treatment at a network hospital.
  • Option for a lump-sum payment: Some critical illness plans allow you to choose a big sum insured, providing total coverage in the case of a life-threatening sickness or pricey treatment. The insurer makes a single lump sum payment at the time of the claim.
  • Critical illness insurance: Critical Illness Policies cover major critical ailments such as kidney damage, heart difficulties, and cancer, among others. Because each insurer’s list of critical conditions is different, it’s vital to read your policy to know which diseases are included and how many are listed. Treatment for serious disorders carries a hefty price. Furthermore, these conditions can call for ongoing care. Hospitalization charges, prescription drug costs, and other expenses can eat away at your savings and put a lot of strain on your finances. 

Benefits of a Critical Illness Policy

  • Coverage for you: Provides cover for you and your family members for the rest of their lives.
  • Benefit for critical illness: Assures payment of the critical benefit in the event of a medical diagnosis.
  • Tax benefit: Sections 80C and 80D of the Income Tax Act of 1961 provide for a tax exemption of up to Rs. 15,000 and Rs. 20,000 in the case of senior citizens.
  • Accidental death benefit: The insured amount is paid to the nominee in the event of sudden accidental death.
  • 100% insurance cover: If you are determined to have a terminal illness, you will be paid 100% of the insurance premium.

How to Pick the Best Critical Illness Insurance?

Here are a few things you should keep in mind:

  • Age: Purchasing critical illness insurance when you are young will provide you with a large sum assured with reduced premiums.
  • Insured amount: A large sum assured might provide you with a safety net with adequate finances in difficult times. Make certain to choose a high sum insured amount.
  • Renewal age limit: To get the most out of your coverage, choose a plan with a high renewal age restriction.
  • Coverage for critical illnesses: The more illnesses covered, the broader the plan’s coverage. 
  • Inclusions and exclusions: It is recommended that you review your policy’s inclusions and exclusions and understand the elements, conditions, and restrictions of your plan.

Given that critical illnesses do not surface at any particular age, and it can also happen without any clear symptoms, it has become all the more important to stay covered with a critical illness insurance plan. Also, the usual general health insurance plans do not cover critical illnesses like cancer, kidney failure, organ transplantation etc. The cost of these critical illnesses can dry up all your savings, lest you have critical illness insurance in place.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales