Following are the critical illnesses most frequently covered by this plan:
- Chest pain
- Stroke
- Cancer
- Organ donation
- Paralysis
- Blindness
- Disability
- Terminal conditions
What justifies purchasing a critical illness plan?
Because it fulfils a certain purpose that neither life insurance nor health insurance can, to put it simply, if the insured survives a severe illness, life insurance pays out a lump payment in the event of passing away but nothing else. The majority of the time, serious illnesses are clearly excluded from health insurance.
Here is a medical fact that supports the need for critical illness health insurance plans. The majority of heart attack survivors take a long time to recover and return to their previous way of life financially. The statistics for cancer and stroke patients are startlingly similar, which is why health insurance with cancer cover is essential. A critical disease diagnosis is a life-altering event in and of itself that can crush one’s goals and drain all of one’s savings. ##
Medical insurance vs Critical Illness insurance
A basic health insurance plan is very different from critical illness coverage. Here are a few areas where they diverge from one another.
| Medical Insurance | Critical Illness Cover |
| It works based on recurrent benefits.
So, if one gets hospitalized multiple times in a year, he can get the medical benefits from his insurance policy multiple times, provided his claim is valid and he does not cross the sum insured limit. |
It offers a one-time fixed benefit and is to be touched only when the treatment costs are very high.So, incase one was diagnosed with a critical illness within the policy tenure, he will get the lump sum in full, at one go. But there and then the benefit stops till the policy is renewed. |
| The pre-requisite needed for filing a claim is hospitalization for more than 24 hrs. | The pre-requisite needed for filing a claim is getting diagnosed with a critical illness (irrespective of whether or not the insured was hospitalized) |
| It provides for expenses incurred on pre and post hospitalization. | It provides for the expenses incurred not just on hospitalization or treatment but also extends a bit further to make up for the overdue debts and lost income due to illness. |
| Critical illnesses come under the category of exclusions in a health plan. | Only the critical illnesses are covered here. |
- Diseases Covered – The diseases covered by critical illness coverage vary greatly. Most insurers offer coverage for eight critical illnesses, but others offer coverage for up to twenty.
- Know the deal – Note the sum assured being supplied by a plan, as well as any supplementary benefits like hospital cash benefits of health insurance and surgery benefits. The size of the hospital network connected to the insurer is another thing to inquire about.
- Read the small print carefully – Knowing both the inclusions and the exclusions of a critical illness health insurance plans is essential when purchasing one. The claims procedure and waiting period provisions should also be taken into consideration.
- Insurer’s credibility – Check out the insurer’s claim settlement ratio for the most recent several years when choosing a critical illness insurance This is maybe the most crucial criterion to take into account.
If you have a medical problem, you must disclose it when applying for critical illness insurance. Sometimes, later in life, a medical issue may give rise to another medical condition.
Plan evaluation
The features of critical illness insurance are essentially the same for both standalone insurance plans and riders on health insurance plans. Which form you want to purchase it in entirely relies on your particular preferences. But experts claim that it functions best when added as a rider to a good health insurance plan.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
