Critical Illness Insurance

Cancers of various stages, kidney failures, heart illnesses, brain procedures, and other major ailments are covered by Critical Illness Insurance. Critical illnesses are costly to treat and necessitate long-term medical attention, for which critical illness coverage is available. The primary goal of these plans is to protect affected family members or individuals from the high medical costs associated with such conditions, which can cause financial stress. The best critical illness policy includes hospitalization expense coverage, consultation coverage, chemotherapy, and radiotherapy coverage, as well as wellness programs and other benefits.

Health Problems can arise unexpectedly and critical ailments can drain an individual and their family financially, emotionally, and physically. The cost of critical illnesses is not just limited to treatments but other things such as regular hospital visits, the cost of medicines, regular diagnostic tests, and other expenses pile on. Critical Illness cover protects you and your family from all the said expenses so that you can focus on your well-being without any financial stress. This article explains you in detail the features, benefits and scope of coverage provided by the best critical illness policy

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9 Best Critical Illness Insurance Plans

What is Critical Illness Insurance?

Critical illness insurance is a type of health insurance, which provides a lump sum amount to the insured if he is diagnosed with critical illnesses like cancer, major burns, coma, among others (as listed under the chosen policy). Not only can the insured use the amount to pay for medical expenses, but also look to meet other financial obligations.

In our current lifestyle, where we constantly come face to face with junk food, stressful work conditions and family responsibilities, it's pretty easy to succumb to critical illnesses. And when that happens, having critical illness insurance in your back pocket can be a lifesaver.

With a Critical Illness Insurance plan, you can ensure that even after you get diagnosed with any critical illnesses, your expenses and your family's dreams are looked after.

Types of illnesses covered under Critical Illness Insurance

Here's a list of some common critical diseases against which a critical illness policy usually provides coverage:

Who Should Take Critical Illness Insurance?

Given the busy modern-day lifestyle, nobody is safe from critical illnesses like cancer, stroke, etc. Therefore, most of us should go for a critical illness plan. However, to be precise, we've listed below certain categories who can majorly benefit from this insurance. Let's learn about them.

1. Family History Of Critical Illnesses

   Generally, critical illnesses are genetic. This means that the people who have a history of critical illness in their family are at a higher risk of suffering from it. For example, if your mother suffers from Alzheimer's disease, there are higher chances of you catching the same. And if that happens, coverage from critical illness insurance can come handy, don't you think?

2. Sole Earner Of The Family

   Being the only earning member in your family, what happens if you are diagnosed with paralysis? Who will pay your monthly expenses? With critical illness insurance in your pocket, you don't have to worry about it.

3. High-pressure Jobs

   It has been observed that people who work in high pressure and stressful job environments have higher chances of developing some sort of a critical illness. So, if you can relate with this statement, a critical illness plan is a necessity.

4. Individuals over 40 years

   Individuals over the age of 40 require Critical Illness Insurance since they are more susceptible to major illnesses. If you did not get critical illness insurance earlier, you should do it as soon as possible because it affects premium expenses.

5. Multiple Critical Illness Cover

   If you are an individual who requires coverage against multiple critical illnesses and are looking for the best critical illness policy, it is crucial to invest in a comprehensive critical illness plan that covers various critical illnesses related to heart, kidney, brain and various forms of cancer.

6. Individuals who are looking for 360 Degree Cover

   The best critical illness insurance provides comprehensive coverage against critical illnesses and their consequences. Individuals require more than just medicines and diagnosis and most critical illness plans offer wellness benefits that aid individuals to recover faster

How's Critical Illness Insurance Different From Standard Health Insurance?

People often think that critical illness insurance and health insurance are the same. However, this is not true. Critical illness insurance plans and standard health insurance plans are different. The table given below highlights the major differences between a critical illness and a standard health insurance policy.

I have a health insurance plan. Do I still need critical illness insurance?

*Sources for the data are taken from-

• Spine and Neuro Surgery Hospital in India
• Rajiv Gandhi Cancer Institute
• India Cardiac Surgery Site
• Medisurge India

By looking at this graph, you can notice that treating critical illnesses such as cancer, kidney transplant, brain tumour and heart attack is a very costly affair in India. It can put a huge financial burden, something which not everyone can afford. Although a standard health insurance plan will provide coverage, it won't be enough to pay all the bills. That's why you need a critical illness policy, which comes with a big sum insured at a reasonable cost.

Benefits Of Critical Illness Insurance

Critical illness health insurance provides a variety of benefits to the insured. Some of the benefits offered by critical illness insurance policies are discussed below:

Lower Premiums

The critical illness insurance plans provide coverage against some specific life-threatening diseases. Due to this reason, the premium of such plans is significantly lower in comparison to the regular health plans. For example, you can buy Care critical illness policy for Rs.1667/year (SI Rs.10 Lakhs) as compared to its Care comprehensive policy for Rs.9546/year (SI Rs.10 Lakhs).

Income Replacement

The policyholder of a critical illness plan has a free hand to use the coverage amount in whatever way he likes. This serves as a big advantage here as the insurance amount can be used as an income replacement option and help the insured to cover his financial burdens.

Tax Benefits

Thanks to Section 80D under Income Tax Act, 1961, the owner of a critical illness policy can enjoy tax benefits up to Rs.25,000 on paying regular premiums. If you are a senior citizen, you can get up to Rs.50,000 as tax deductions. If your parents are senior citizens, you can grab tax deductions up to Rs.50,000 for premiums paid for them.

What's Not Included In Critical Illness Insurance?

There are a few situations, where critical illness insurance doesn't provide any support. Let's learn about them.

How To Determine The Right Coverage Amount In Critical Illness Insurance?

There are some vital parameters, which determine the right coverage amount for a person applying for critical illness insurance. These include-

Location- The hospitalization expenses of any critical illness often vary significantly upon location where the person is taking the treatment. For example, if you reside in a relatively smaller city like Haridwar, then an insurance coverage of Rs.15-20 Lakhs would be enough to cover your medical expenses. But if you reside in a big city like Bangalore, you would need a coverage amount of more than Rs.30 Lakhs to cover your treatment and hospital bills. The cost of medical treatment varies by upto 100% in some cases from location to location. Accordingly, you should decide your coverage amount.

Age of the insured- Suffering from critical illness in the old age can make things worse. You are at a greater risk of catching more illnesses, along with the present illness. To tackle them effectively, you need the support of a higher coverage amount.

Lifestyle- The lifestyle of a person is also an important factor, which helps in determining the right coverage amount for a critical illness plan. People having unhealthy lifestyle practises like smoking or drinking are more likely to get diagnosed with critical illnesses like cancer or kidney failure. That is why such people should go for plans offering greater sum insured so when the illness arrives, you are financially prepared for it.

How To Choose The Best Critical Illness Insurance Policy?

Wait a minute, there is nothing called the 'Best critical illness insurance policy'. A person needs to go through all the policies available in the market and decide the best one for himself. To help with that, you can take a look at the below factors-

1. Premium Amount

   Based on the plan you select, you will have to pay a premium amount to the insurer after specified intervals. The duration and benefits of the policy are directly linked with the premium payment. So, make sure to choose a policy whose premium you can afford to pay.

2. Waiting Period

   It refers to a specific period after which the policy benefits are payable. Meaning, if your insurance plan has a waiting period of 4 months, then you can file your claim only after 4 months. The time frame can vary depending on the chosen health insurance company. Therefore, it is advisable to go for a plan that offers a low waiting period.

3. Diseases Covered

   Not all insurance companies provide coverage against the same type of critical illnesses in their plans. For example, ManipalCigna Health Insurance company provides coverage for permanent paralysis of limbs. Whereas Reliance General Health Insurance does not. So, choose a plan that covers the specific critical illness you expect yourself to get diagnosed with/are diagnosed with. Ideally, you should go with a plan that covers maximum diseases.

4. Network Hospital list

   Individuals must consider the network hospital list linked with the critical illness insurance plan they are purchasing because it is a significant aspect in the event of an emergency and treatment of the condition.

5. Survival Period

   Before investing in a critical illness cover, insurance holders must keep in mind to check the policy wording and understand how many days of survival period is mentioned within the plan. The shorter the survival period the better for the diagnosed individual as he/she can avail of treatments at the earliest.

6. 24X7 customer support

   The best critical illness policy offers a consistent and efficient customer support system to the insurance holder regarding any assistance required related to cashless hospitalization, diagnosis, OPD cover and more.

Why Should You Buy Critical Illness Cover From PolicyX.com?

Critical illnesses often bring with them critical times. If you're diagnosed with a critical illness, your savings are most likely to be drained out quickly. If you want to protect them, it is important to have a backup plan against such uncertainties.

PolicyX.com helps you to find the suitable critical illness policy within few minutes. You can instantly compare different critical illness plans, evaluate their features according to your needs and find the best one for yourself. As a customer of PolicyX.com, you can enjoy the following benefits:

What Is The Claim Process Of A Critical Illness Insurance?

The claim process of critical illness insurance is not so different from standard health insurance. For your convenience, we have briefly jotted down two ways of applying claim- cashless and reimbursement. Let's check them out.

Cashless Claim Process:

This is only applicable if you take treatment in a network hospital.

• Inform the insurance company about the hospitalisation and submit your health card and photo id proof at the hospital insurance desk.
• Fill-up the pre-authorization form and the hospital will share the same with the insurance company.
• On approval from the company, you can avail of cashless treatment.

Reimbursement Claim Process

Here, the insured should meet all the treatment expenses himself and then apply for reimbursement (if a cashless request is rejected or hospitalization is at a non-network hospital).

• Intimate the insurance provider.
• Fill up the claim form and submit it along with the discharge certificate and other necessary documents to the insurance provider.
• The insurer will verify the details of the claim and the claim amount will be transferred to the registered account as soon as everything is checked and sorted.

Note- The above-listed steps may vary depending on the chosen insurer.

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