Illnesses, whether chronic, sudden, or critical, can have a detrimental impact upon your life. Not only do they harbour the potential of casting a debilitating shadow on your health, but they can also leave you struggling to meet the hefty medical expenditures. This is why availing a health insurance for critical illness is largely considered to be the only effective way of escaping such predicaments.
What Is Critical Illness Insurance?
As the name itself suggests, a critical illness insurance is essentially an insurance product which covers the expenses associated with the onset of a critical illness. Right from the time of diagnosis to the time of cure, the critical illness insurance policy offers financial protection across various preventive and curative verticals. In other words, critical illness insurance acts as a saviour for those who are afflicted with severe health ailments but cannot afford to bear the cost of treatment.
What Diseases Does It Cover?
A health insurance for critical illness covers a variety of different diseases including:
- Stroke
- Paralysis
- Heart attack
- Cancer
- Kidney failure
- Coronary surgery
- Organ transplant
However, the critical illness insurance policy does not offer protection against:
- Hernia
- Dental treatments
- Gastric issues
- Cataract
- Birth control
Whenever you buy a critical illness insurance policy or add a critical illness rider to your existing plan, you will have to specify whether you are prone to certain illnesses. You will also have to mention the severity of the disease and render an explanation about its permanent or transient status.
What Are the Features of Critical Illness Insurance?
A critical illness insurance cover generally varies from Rs. 1 lakh to Rs. 10 lakh, depending upon your current age, medical history, and health status. Additionally, the potential costs of treatment are also calculated and included within the policy package, along with other basic features like:
- After the initial diagnosis, a 30 day grace period is usually offered. If the patient survives during this time, compensation begins to be provided.
- If the policy holder is above 45 years of age, pre-medical check ups need to be compulsorily conducted.
- If the premium is paid uninterruptedly for the first four years, the insurer provides the option of covering pre-existing ailments as well.
- The total sum assured can be paid either as a lump sum amount or as monthly, quarterly, half-yearly or yearly instalments.
Why Is a Critical Illness Insurance Necessary?
A health insurance for critical illness is immensely advantageous as it provides a multitude of wide-ranging benefits including:
- Tax exemptions up to Rs. 1.5 lakh under section 80 (D) of the Income Tax Act, 1961.
- Quick, hassle-free, and uncomplicated claim settlement.
- A plethora of alternatives for premium payment and policy tenure.
- The option to add customised illness riders.
- Coverage of all pre and post-hospitalisation expenses.
More so, the insurance amount paid does not have to be used in a specific way. It can be utilised as per the policy holder’s needs and requirements.
Purchasing a critical illness insurance policy can prove to be a highly prudent and efficient affair as it doesn’t just provide greater coverage, but it also boosts your entire health insurance portfolio. By offering the perfect balance between affordability and reliability, critical illness insurance schemes make sure that your path towards leading a healthy and fulfilling life is strewn with both, physical comfort and financial ease.