Check Why Critical Illness Insurance is Essential?

Life is uncertain and so is the health condition of an individual. You never know what will happen to you, and at what time. There have been cases where people thought themselves to be completely fit and healthy, only to be diagnosed with a critical illness soon after. There is nothing to be afraid of in incidents like such. Instead, there is a crucial need for people to understand that since it is impossible to enjoy good health at all times, it’s better to prepare in advance.

Understanding Critical Illness Insurance

Critical illness insurance is a boon in the form of an insurance product. Also referred to as critical illness cover or a dread disease policy, critical illness insurance is a popular insurance product under which the insurer is contracted to make a lump sum cash payment, in case the policyholder is diagnosed with one of the precise illnesses on a pre-set list as part of an insurance policy.

The coverage that one gets from critical illness insurance is like a sigh of relief, as it prevents one from dealing with the massive hospitalisation/medical expenses, which are otherwise a task to take care of. After all, one can't bear the rising medical costs, and that too with a significant amount at once.

What makes critical illness insurance an unmatched insurance product is the fact that it provides the insured individual with a lump sum amount for the expenses, which otherwise won’t be possible for them to manage at once.

Who requires Critical Illness Insurance?

Of significant benefit for those who have a medical history and do not want to take risks with their health condition, critical illness Health insurance is also a big boon for those who cannot afford to lose all their finances in one go. Also, it is really helpful for people without sufficient savings and/or who lack an employee benefits package that covers prolonged sick leave.

That being said, register that Indians aged over 18 years and less than 45 years can go ahead with buying critical illness insurance. People over 45 years of age may have to undergo mandatory pre-policy medical checkups. Another thing to note is that family members (parents, children, spouse, and siblings) can also be covered under a single critical illness insurance plan. In case, more than one individual is provided coverage under a single policy, each qualifies to get coverage once during the policy tenure.

Conditions That Covered under Critical Illness

First and foremost, take note that illnesses covered under critical illness insurance vary between insurers. So, one needs to check the policy details before going ahead with the purchase.

Critical illness insurance policies commonly provide coverage for illnesses such as heart attack, stroke, and some types of cancer, and may include optional add-on illnesses. The list of conditions that could be classed as critical illness comprises:

• Kidney failure
• Bypass of a coronary artery
• Paralysis
• Deafness
• Traumatic head injury
• Major organ transplant
• Parkinson’s disease
• Coma
• Heart valve surgery
• Multiple sclerosis
• Failure of a major organ
• Primary Pulmonary Arterial Hypertension
• Aorta Graft surgery
• Total blindness and others.

Exclusions in Critical Illness Health Insurance

As far as the exclusions in a critical illness policy are concerned, the medical conditions that are not covered include:

• HIV/AIDS infection
• Any illness due to smoking, tobacco, alcohol, or drug intake
• Treatment done outside of India
• Critical conditions or consequences, owing to pregnancy or childbirth, including Cesarean
• Infertility treatment
• Any dental care or cosmetic surgery
• War, terrorism, civil war, navy or military operations
• Illness occurring due to internal or external congenital disorder
• Birth control
• Cataract
• Hernia
• Overseas medical treatments
• Death within 30 days of diagnosis of critical illness
• Critical illness diagnosed within 90 days from the inception

Features of Critical Illness Insurance Plans

• Generally, one month after the first diagnosis, the sum assured is paid as a lump sum. Note that this money can be utilised by the insured individual as per their choice
• Compulsory pre-medical check-ups for those over a particular age, usually 45 years
• Coverage for daycare procedures such as dialysis
• A grace period of 30 days is usually applicable post-diagnosis. The compensation is paid subject to survival during this time
• Most of the insurance companies have tied up with cashless network hospitals, where treatment can be done without paying cash
• During the renewal, the sum assured can be changed, according to the insurer’s approval
• Most insurers do not cover pre-existing diseases, however, some allow cover for pre-existing diseases after a particular period of uninterrupted premium payment - usually 4 years and above

Critical Illness Health Insurance Benefits

• ​Easy claim settlement
• Hassle-free documentation while making a claim
• Tax benefits under Section 80D of the Income Tax Act
• Availability of numerous options for premium, policy tenure, as well as sum assured
• Pre-hospitalisation expense coverage for up to 30 days
• Lump sum amount paid after a specific waiting period
• Option to invest in additional riders.

10 Critical Illness Policies in India

So, whether concerned about finding the best self or family health insurance plan, note that this list of 10 Critical Illness Insurance policies in India will help you find the best possible plan as per your insurance needs. To uncover more critical illness policies, and that too in a detailed manner, you can visit the sites of different insurers.

Also Read:

Compare Health Insurance Plans Online Before You Pick One for Your Loved Ones

Best Health Insurance Policies for 30-Year-Old People