Critical illness insurance policies are meticulously designed to offer financial protection against unforeseen medical emergencies and prevent financial strain. With the rising cost of availing medical treatment, especially for critical illnesses the need to get a critical illness insurance cover has become important.
In fact, today critical illness coverage has become a vital complement to health insurance plans. However, the success of such insurance depends on several factors including their features, limitations, and scope. This is why it becomes crucial to check every aspect of the insurance plan in detail to pick a policy that aligns with their needs and requirements and helps account for meeting soaring medical costs during an emergency.
Critical Illness Insurance – Definition and Scope
Critical illness insurance is essentially a comprehensive cover that provides a lump sum amount to the insured when they are diagnosed with a critical illness that is covered by the policy. Typically, a critical illness covers accounts for health disorders such as heart conditions, cancer, renal failure, tumors, and related surgeries. The policy provides the insured with the required financial assistance to account for the high cost of treatment. This takes of substantial financial burden off and enables the insured to focus on their recovery instead of being worried about the financial arrangements.
What are the Key Features of a Critical Illness Insurance Cover
The key features and associated benefits of critical illness cover set them apart from the rest. The major features include –
Policy Coverage: A comprehensive insurance cover tends to safeguard individuals against multiple illnesses, including tumors, cardiac arrest, cardiac surgery, cancer, and kidney failure. The plans offer robust financial protection, offering peace of mind to the insured and their family members and allowing them to focus more on recovery.
Lump-sum payout: Life insurance companies tend to provide the insured with a one-time lump sum payment so that they can treat the covered illness they get diagnosed with ease. This also helps account for related expenses and ensure everything gets carried out smoothly.
Tax Breaks: The Indian Income Tax Act, of 1961 allows individuals to claim tax on their critical illness insurance. Under section 80D of the act, the policyholder can claim a deduction of up to Rs. 25000 on medical insurance premiums in a year.
Notably, senior citizens can claim a deduction of Rs. 50000 in a year under the same provision.
What Should You Check Before You Purchase Critical Insurance?
Individuals must check these things before they purchase a critical illness cover –
Sum assured: The features of critical illness coverage are crucial in deciding the scope and merit of the policy. One of such key features is the sum assured of the policy. Typically, the sum assured varies among critical illness plans and their scope which takes into account treatment costs for the illnesses covered, and the policy buyer’s cover requirement. To understand the suitable insurance coverage individuals can use an online insurance premium calculator to understand their eligible sum assured and premium amount. However, to avail a more accurate estimate and find the crucial details of the policy individuals can request for policy quote. Such a document offers a better insight into the plan and helps individuals understand whether it matches their needs or not.
Affordable premiums: Individuals must ensure that the premium accompanying their choice of plan matches their financial standing and budget capabilities. Typically, critical illness insurance extends comprehensive coverage at affordable rates. However, several factors including an individual’s age, coverage needs, health conditions, and medical history influence the insurance premium. To understand how these factors impact the premium and coverage, individuals can use an online insurance premium calculator. It will also help estimate the premium they are likely to pay and will help them plan their finances accordingly.
Simple claim: It is always recommended to check the insurance claim process before purchasing the policy. This will ensure that individuals purchase a plan that follows a simple claim settlement process and doesn’t burden the insured or their family members during stressful medical emergencies. A simple process will further ensure access to financial cover is quick and hassle-free. This will offer the insured freedom from unwarranted stress regarding the requirements or process of the claim settlement.
Scope of coverage: Individuals looking to purchase a critical illness insurance policy should review the list of illnesses that the plan covers. This will help understand its scope and allow individuals to build required contingencies accordingly. It is always a good idea to look for coverage that will cover a high number of critical illnesses such as cancer up to a certain stage, cardiac arrest and surgery, and coma.
Policy exclusions: Besides checking the coverage of the policy, individuals must also check the exclusions to understand its limitations. Notably, the list of policy exclusions may vary among insurance companies. Hence, it is important to check different policies’ coverage and exclusion in detail to pick the best-suited one with wide coverage. However, as a standard, most insurers do not cover circumstances like –
- Illness triggered by internal congenital disorders
- Illnesses diagnosed during the waiting period
- Diseases triggered due to poor lifestyle habits such as alcohol, smoking, substance abuse, and tobacco use
Why Should One Consider Getting Critical Illness Insurance?
In the present world, the role and importance of having a critical illness plan is increasingly becoming vital. With a sharp rise in the cost of medical treatment and a rampant surge in sedentary and unhealthy lifestyle practices, the need for critical illness coverage has increased significantly.Â
Due to unhealthy lifestyle practices, pollution, rising levels of stress, and poor dietary choices, the minimum age at which individuals are diagnosed with critical illness is decreasing at a rapid rate.
Considering these concerning factors, individuals, especially the young ones should get a critical illness cover. Typically, such a plan will offer financial coverage to account for illnesses such as heart disorders, stroke, and cancer without straining their finances. While the comprehensive cover will help protect individuals against financial repercussions, the sum will enable them to seek the required treatment without any delay.
However, to ensure they avail the required assistance and the process is hassle-free, individuals should weigh the features and benefits of the plan. They should also check the coverage and exclusion of critical illness coverage and compare different plans to avail the best policy.
