Critical illness insurance plan
Critical illness is any medical situation that needs more attention than a regular disease and can have a worse effect on your health, lifestyle and finances.
It is critical because it might lead to loss of income due to inability to work and also because you need a huge amount of money for the treatment.
While acute illness too are increasing, the critical illnesses have gone on a hike and can lead to a lot of repercussions. Thus a critical illness insurance plan is the need of the hour because it saves you from a lot of trouble that might arise in case of any serious illness because it provides you with the lump sum compensation, and covers the large medical costs etc.
All that is included in critical illness plan
- Cancer of specified severity
- Open chest CABG
- Heart attack of specified severity
- Open heart replacement or repair of the heart valves
- Kidney failure that requires regular dialysis
- Major organ / bone marrow transplant
- Bacterial meningitis
- Loss of speech
- Major burns
- Muscular astrophysics
- Stroke resulting in permanent symptoms
- Coma of specifies severity
and many more. With all these issues being extremely critical and hence they require a hefty amount of money to be paid for the treatment. A critical illness insurance plan has your back during some grave and serious time of your life.
Exclusions of critical illness plan
- Critical illness diagnosed during the first 90 days of the critical illness plan inception
- Death within the 30 days of diagnosis and surgery
- Illness due to smoking, tobacco, drug intake etc
- Illness occurring due to external or internal congenital disorder
- HIV/AIDS infection
- Dental treatment
- Hormone replacement
- Treatment out of India
- Infertility treatment
- Treatment to assist reproduction
Advantages of critical illness insurance policy
- Apart from providing you the benefit of lump sum amount if and when you are diagnosed with serious illness, there are other advantages also of this plan which are as follows:
- Tax benefits under section 80 D
- Free health checkups
- Cost of care and recuperation aid
Things to remember while buying a critical illness plan
- Amount of cover
Amount of cover determines which policy is going to work for you. For example if you need an insurance for stroke, the amount of cover shall be lower as compared to the amount of cover for the cancer treatments. Knowing how much cover you need for any particular disease, ailment, you can decide which policy to choose.
- Inclusions and exclusions
Knowing about the inclusions and exclusions of the policy, you shall decide what policy you should go for, because certainly don’t want to end up investing in a policy that does not include what you need it for.
- Age of the insured
The critical illness policies that have a higher coverage for the elderly people, also have higher premiums. This is because, the elderly are more prone to the serious diseases. However, this provides a comprehensive coverage that they need.
- Maximum age for renewal
Some policies provide the life long renewal while there are certain policies that allow you to have the renewal until certain maximum age. It is always better to go for a policy that provides a life long renewal.
- Waiting period restrictions
Certain policies have this restriction that they will not provide the cover for any critical illness until a certain period of time which may be 2-3 years from the inception of the policy. It is always better to go for a policy that does not have certain restrictions, because if there are then insured will not be able to avail the benefit of lump sum amount in case diagnosed with certain illness during the waiting period.
differences between the health insurance plan and the critical illness plan:
|Parameters||Critical Illness Plan||Health Insurance|
|Health Insurance||It is a policy to cover life threatening diseases like tumor, permanent paralysis, etc.||It is a comprehensive cover that includes hospitalization expenses.|
|Benefits||Hospitalization is not required because diagnosis is enough to get critical illness benefits. The insured receives the entire amount at once and can use it in a way he likes.||The insured can reimburse hospitalization expenses by submitting bills. He can also opt for cashless facility at network hospitals.|
|Coverage||It has restricted coverage because it covers only 6-12 diseases.||It offers an extensive coverage, including hospitalization expenses.|
|Waiting Period||There is a waiting period of 3 months.||There is a waiting period of 30 days.|
|Tenure||It is taken for a long duration, usually 15-20 years.||It is an annual contract, wherein the policy must be renewed after 1 year.|