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All That You Need to Know About Critical Illness Insurance

Nov 18, 2019 | 8 months ago | Read Time: 3 minutes | By iKnowledge Team
All That You Need to Know About Critical Illness Insurance

You have a medical insurance policy, but does that cover your unplanned medical expense when you have to undergo a coronary artery surgery? When you are diagnosed with a critical illness such as this one, your medical insurance policy won’t be enough. Therefore you will need a critical illness cover.

Critical Illness Policy – Meaning

Critical illness is a life-threatening illness that hampers your ability to go to work regularly, comes with major risk to your life or comes with a permanent/ temporary disability. Your medical illness policy doesn’t cover these serious ailments. Also, the treatment costs for these illnesses are quite exorbitant. To provide cover against these costly and serious ailments, you will need the support of a critical illness insurance plan.

When you are diagnosed with a serious ailment, you need to intimate your insurance service provider about the same. Your insurance company, in turn, will pay you back a lump-sum amount (based on the stage of serious ailment you are diagnosed with). This amount will help you meet your recovery and rehabilitation expenses, which wouldn’t have been possible for you, otherwise.

Inclusions and Exclusions

The number of illnesses that are covered and not covered in your critical care plan is a very important factor that you have to consider when you are choosing the best critical illness policy that suits your requirements and needs. Cancer, heart ailments, strokes, organ failure, paralysis, meningitis, liver & kidney ailments, etc. are some of the common critical illnesses that are covered by most insurance service providers.

Dental issues, HIV, existing medical conditions, infertility treatments, hormone treatments, etc. are not included as per the critical care plans of any insurance company. You could also check with your insurance company for detailed terms so that you can be sure of the illnesses that are excluded. This will give you a clear idea of whether that policy would suit you or not.

Critical Illnesses

Why choose one?

A critical care plan acts as an income replacement plan as well, because it pays you a lump sum payout when you are diagnosed with a serious ailment. A serious ailment such as cancer can cost you tens of thousands of rupees, only for the medicines. The treatment costs are an additional burden that you have to bear. If you don’t have a critical care plan, you have to get a loan from your friends/relatives or sell assets, if any, to meet the exorbitant expenses.

When you have a critical care plan as a backup, you have nothing to worry; the insurance company pays out a lump-sum amount to you. You can use it for rehabilitation and recovery. The premium that you pay towards this policy is eligible for tax benefits under Section 80D. So, you not only get a financial payout, but you are also eligible for tax savings.

Choosing the right policy

Do you want the best critical illness policy for yourself and your family? If yes, it is highly recommended that you do a careful analysis before choosing the right one from a group of options available in front of you. Choose the policy that provides you with extensive coverage and offers you a minimum waiting period, so that you can enjoy the lump-sum payouts as soon as you are diagnosed with a critical ailment.

Calculate your coverage amount carefully, after taking into consideration your age, medical conditions, family medical history, nature of employment and the like. This way, you will arrive at a reasonable amount that will sustain your income loss (if any), rehabilitation and recovery expenses. Also, you can choose an exclusive critical care plan or a plan that is offered as a rider with your life/ general insurance.

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