Get Protection + Monthly Income after Retirement

Critical Illness Insurance – What You Need to Know

Aug 21, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Critical illness is any serious illness which has devastating effects on the insured and their family’s life— emotionally, physically and financially.
Health Insurance Cover
A critical illness condition is not just physically and emotionally draining, but is also financially draining. You will have to pay for extensive medical expenses, along with regular household expenses.

The question arises; “Why opt for a critical illness insurance plan if you have a general health plan or a mediclaim?” A general health insurance plan covers medical expenses for illnesses which are not critical in nature. Also, a general health plan is devoid of add-ons and may not prove to be beneficial in the long term as an investment plan.

What is Critical Illness Insurance?

A critical illness insurance policy, consists of add-ons and provides cover for a specified list of severe illnesses or diseases such as organ failure, blindness, deafness, cancer, loss of limbs, to name a few.

Let us understand the parameters one should consider before buying a critical illness insurance plan.

1. Faultless Cover

You, as the applicant should be aware of the benefits that are included in the given plan and choose accordingly. Firstly, check that there is no scope for a conflict of coverage situation to occur in the future. There should be zero overlap of benefits that may cause confusion when you actually plan to claim the term insurance. Look out for the below advantages while choosing a critical illness insurance policy:
– Normally, critical illness insurance plans guarantee hassle-free settlement of claims.
– Check if pre-hospitalisation expenses are covered up to 30 years. 
– If the Critical Illness Insurance Policy has tax benefits under Section 80 (D) of the Income Tax Act.

2. Renewable or Non-Renewable

Check if the renewability clause of the critical illness is up to the age of 50 years or provides lifetime renewability. It is essential that you know this time period as consequently you will work towards saving a lump sum amount to invest in critical illness cover.

3. How long is the ‘Waiting Period’

Remember to apply for a policy which is less in terms of the waiting period. Even if there are two policies offering similar benefits, always opt for the one which does not exceed two to three years.

4. Type of Illnesses and Diseases Covered

Most critical insurance plans provide cover for up to 8 critical diseases while there are plans which provide cover for as many as 20 critical diseases. Take a status update of your financial standing and illnesses (that are prevalent) and choose a critical insurance plan accordingly.

5.Structure of the Claim Process

Under this condition, remember that the claim after you apply for one should never be delayed but should be paid to you on time as the insured. For this you need to check the claim settlement ratio with your insurance provider. Check if it is subpar or if the process to acquire a claim is too complicated or including excessive paperwork.

6. Is it a Stand-Alone Plan or comes with an Add-on?

Insurance companies have come up with two options where the applicant can opt for a stand-alone policy (which has no connection to the applicant’s existing general health plan) and a second option where the applicant can pair his or her existing general health plan with the critical illness cover. Check which of the two is most-suited to your needs and apply accordingly.

That said, it is important that you are aware of the basic features of a critical illness insurance plan:
1. Critical illness plan requires the applicant to undergo pre-medical check-up over a certain age which is 45 years in this case.
2. Dialysis is covered under critical illness cover.
3. As per the insurer’s approval, the sum assured can change at the time of renewal. Check this condition with your insurance provider.
4. Majority of the insurance companies tie up with hospitals in their network who provide cashless service. This means treatment given to the applicant does not demand on-the-spot cash to be paid.

Now that you are aware of the advantages and features of the critical illness plan, take a look at Aegon Life’s iTerm Plus plan, which is a comprehensive online term plan. This plan provides pure protection in the form of life insurance and covers you and your loved ones against 36 critical illnesses. Aegon Life’s iTerm Plus Plan is a smart choice to ensure complete protection for life, along with critical illnesses’ cover.

For more information on the critical illness plan by Aegon Life , click here:

To know about AegonLife’s life insurance products, visit our home page.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
8 Financial Must-Dos for Newlyweds
This Rakshabandhan, Guide Your Sister towards Financial Freedom
36 Critical Illness Covered. Calculate your Premium!
Do You Smoke?

Date of Birth

Your Monthly Premium for Aegon Life iTerm Insurance Plan