A critical illness insurance policy covers the insured against life-threatening critical illnesses such as cancer, heart attack, renal failure etc. This insurance policy provides coverage in the form of a lump sum at the time of diagnosis of a covered illness. The lump sum can be used for the treatment expenses.
Upon surviving a minimum number of days, the insured can avail the policy benefits as per the applicable terms and conditions.
Here are the features of critical illness insurance plans:
Have you ever wondered, what will happen to you and your family if you can’t earn as a result of a critical illness? On top of that, how will you take care of your incurred medical expenses?
We don’t want you to get scared, we want you to be aware of the severe situations that a critical illness can bring along.
Buying a critical illness health insurance policy is a foolproof way of securing your future against critical illnesses. It will provide you with a lump sum amount upon diagnosis of covered critical illnesses.
The policyholder can avail tax benefits under the Income Tax Act, 1961. Tax exemption of up to Rs. 15,000 can be availed under Section 80D of the Income Tax Act, 1961. Senior citizens can avail tax benefit up to Rs. 20,000 under the same section.
*Tax benefit is subject to changes in tax laws
The below parameters work like wonders when it comes to ensuring the right critical illness insurance plan:
|Sum Insured||A lump sum amount equal to sum insured|
|Waiting Period||Initial 30 days from the policy start date|
|Survival Period||30-90 days|
|Number of Disease Covered||8-36 illnesses, depending on the provider|
|Renewability Age||Either maximum age or lifelong renewability|
*The above information is subject to change as per the norms of insurance provider
When Neeraj was diagnosed with a brain tumour, he was completely shattered.
His health insurance policy having a sum assured of Rs. 10 Lakh took care of the incurred treatment expenses. Having said that, he was devastated when the revenues of his business started falling down. Due to the severity of his illness, he was unable to take care of his business. As a result, the financial health of business deteriorated (along with his health).
There are many people like Neeraj who don’t know that a health insurance policy is different from a critical illness insurance policy.
Here are the differences between a critical illness insurance plan and health insurance plan.
|Parameters||Critical Illness Insurance Plan||Health Insurance Plan|
|Meaning||It covers life-threatening diseases like tumour, permanent paralysis, etc.||It provides comprehensive health insurance coverage including hospitalization expenses.|
|Benefits||Hospitalization is not required to avail policy benefits. Diagnosis is enough to get lump-sum payment.||The insured can get the reimbursement of incurred hospitalization expenses by submitting bills. He can also avail cashless facility at network hospitals.|
|Coverage||It offers coverage for up to 36 critical illnesses.||It offers extensive coverage, including pre-hospitalization expenses and post-hospitalization expenses|
|Waiting Period||There is a waiting period that depends on the severity of illness.||There is a waiting period of 30 days.|
|Insurer||Plan Name||No of Diseases Covered||Key Features||Exclusions|
|Religare Health Insurance||Assure||20||
|Bharti AXA Health Insurance||Smart Health Critical Illness - Lump sum||20||
|Max Bupa Health Insurance||Health Assurance Critical Illness||20||
|Reliance Health Insurance||Reliance Critical Illness||10||
|Total Health Plan 1||17||
|Total Health Plan 2||17||
|HDFC ERGO General Health Insurance||Critical Illness Plan||8||
|HDFC Life||Cancer Care Silver||1||
|Cancer Care Gold||1||
|Cancer Care Platinum||1||
|HDFC ERGO Health Insurance||Optima Vital||37||
|ManipalCigna Health Insurance||Basic||15||
|Edelweiss Tokio||ET Criticare+||17||
|PNB Metlife||MetLife Major Illness Premium Back Cover||35||
Generally, critical illness insurance plans cover the following illnesses:
Disclaimer- This list is only indicative and not exhaustive. Insurance companies cover various critical illnesses under different critical illness insurance policies.
Generally, critical illness plans don’t provide insurance coverage for the following:
Now, the need for a critical illness policy is more than ever. The sedentary lifestyle pf 21st-century is giving rise to all kinds of illnesses, most of which are critical in nature. Different studies indicate a steady rise in the number of people falling prey to critical illnesses. While the number of people developing/ contracting critical illness is increasing, the age at which people develop critical illnesses is consistently decreasing. This means that millennials are prone to developing critical illnesses as compared to the earlier generations.
Anyone and everyone stands to benefit from taking a critical illness policy. The modern-day hectic lifestyle is a harbinger of lifestyle-related illnesses including critical illnesses like cancer, heart attack, stroke, etc.
A critical illness can reduce the ability of patients to earn. It is because the patient is often sick and home-bound. The reduced ability to work in some cases leads to not being able to work at all. This triggers a financial crisis.
To prevent such situations, one can opt for a critical illness policy.
With hospitals spending heavily on super-speciality equipment, the treatment is getting better day-by-day. Due to this and medical inflation, the cost of treatment is increasing. When a person is hospitalized, incurred medical costs can go sky-high.
For women having breast cancer, Herceptin (breast cancer drug) can cost a bomb. While undergoing the treatment, the patient needs at least 16 vials. You can imagine how much a patient needs to spend during the treatment.
Keeping in mind the treatment expenses for critical illness, opting for the best critical illness plan seems to be a viable option.
Here is who all can get benefitted from a critical illness policy:
Many critical illnesses are hereditary in nature, i.e. they run in families. One is at a much higher risk of developing a critical illness if there is a family history of the same. Those with a history of critical illness in their family should definitely opt for a critical illness insurance policy.
The role and importance of the primary breadwinner of a family are paramount. If something happens to them, the family’s financial future will be severely affected. The family may even have to face unpleasant financial situations.
That’s why earning members of a family must buy critical illness insurance cover, especially if they have a medical history.
Critical illnesses have a high correlation with high-pressure jobs. Various studies indicate that people working in high-pressure work environments are at increased risk of developing a critical illness. Employees having a job that puts high-pressure on them such should definitely opt for a critical illness policy.
People over the age of 40 years are more susceptible to developing critical illnesses. It is advised that they buy a critical illness insurance policy in their late thirties. Moreover, they are likely to be in a better financial position and can pay policy premium easily.
Here are various factors to check before opting for a critical illness insurance plan:
The amount of cover is essential to determine which policy works for you. Treatment for some critical illnesses costs comparatively lower than the others. Knowing how much coverage you want will help you choose the right plan for your needs. Get a critical illness insurance quote from our website to come across the critical illness insurance that works for your needs.
Since a standalone policy attracts a higher insurance premium as compared to a rider, it offers comprehensive coverage. The scope of coverage offered by a standalone critical illness insurance plan is higher as compared to a rider. Though, a rider may provide the insurance against the same set of critical illnesses, the amount of cover or the sum assured will be way lesser.
This is due to the fact the rider is actually dependent on the base policy. For instance, if the healthcare policy or mediclaim is for Rs. 2 lakh, then the critical illness rider will provide insurance coverage only for Rs. 2 Lakh.
To enjoy a comprehensive insurance coverage, insurance experts recommend opting to opt for a standalone plan.
Checking the sub-limits under a critical illness insurance policy is important as they have repercussions on the costs you would have to bear. Sub-limits are applicable to the total sum assured under a critical illness insurance plan.
For instance, if a critical illness insurance policy having Rs. 5 Lakh sum assured comes with a sub-limit of Rs. 1.5 Lakh for tests and Rs. 2 Lakh for surgery, will cover up to 3 Lakh. Depending on the incurred expenses, you will have to pay up to 2 Lakh from your own pockets.
Some critical illness insurance policies offer a higher amount of cover for surgeries while others may have a higher cover for tests. It is important that you have fair information about the limitations before opting for a critical illness insurance plan
Though the general inclusions and exclusions of a critical illness insurance policy are mentioned above, you should check the exact inclusions and exclusions in the policy brochure. It will help you get a better understanding of the plan.
For instance, a critical illness insurance policy focusing more on cardiovascular diseases may have exclusions such as cataract or cancer. If you are looking for a specific set of illnesses to insure against, please make sure you check the details beforehand.
The critical illness insurance policies catering to senior citizens offer wider coverage and attract a higher insurance premium. This is because senior citizens are at a higher risk of developing critical illnesses as compared to young adults.
The insurance experts recommend opting for a critical illness insurance plan as per your age group.
Some critical illness insurance policies provide coverage up to a specified age while others provide lifelong coverage. You ought to know the exact age up to which you, as an insured, can renew the plan. For some plans, you can’t renew beyond, say 60 years.
The insurance experts recommend opting for a critical illness insurance plan with a maximum renewal age.
Generally, critical illness insurance policies come with a waiting period. This means that the policyholder can avail insurance coverage for covered critical illnesses after the end of the waiting period.
The insurance experts recommend opting for a critical illness insurance plan with a low waiting period.
If there is a need to file a claim, contact your insurance company and register your claim. Usually, the following documents are required to file a claim:
After receiving the above documents, the claim team would verify the details. Based on the verification, your claim will be approved or disapproved. Whatever the case may be, it will be intimated to you.
Note: The insured may have to provide additional documents depending upon the claim.
Treatment for a critical illness can wipe out your savings in a single go. You can opt for a critical illness plan and secure your financial future. You can compare and find the best critical illness plan in a matter of a few clicks at PolicyBazaar.
We can help you evaluate available insurance policies according to your insurance needs. We will help you come across the plan that offers the best insurance benefits at best insurance premium. Our trained customer care executives will guide you so that you’ll get the right protection you need.
At PolicyBazaar, you can avail the following benefits:
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.