Home Health Here is what you should know about critical illness insurance policies

Here is what you should know about critical illness insurance policies

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Given the rising expense of healthcare in India, the treatment of a critical disease can exhaust all of your savings. Thus, to stay financially protected against such medical situations which can easily turn out to be an exhaustive process, you should get a critical illness insurance. Insurance against serious, long-lasting illnesses that call for pricey medical care cab be availed through critical illness insurance.

Critical illness insurance covers severe illnesses like, cardiovascular disease, cancer, strokes, organ failure and likewise. This kind of insurance can assist in paying for your medical expenses, time off work, and missed wages. Additionally, having critical illness insurance will give you and your family peace of mind in the case of a terrible health emergency by protecting you financially.

What is an insurance policy for critical illness?

The critical illness insurance policy offers the insured, protection against fatal critical illnesses including heart attack, cancers, kidney failure, etc. The majority of health insurance providers offer critical illness coverage in addition to the standard health insurance policy as a rider benefit. The insurance purchasers must pay not only the basic policy premium but also an additional payment to make use of this rider option.

Features of a critical illness insurance policy

  • Simple claim processing: Using the diagnosis report, the claim can be processed quickly.
  • Loss of income: A portion of the lump sum may be utilized to replace lost income.
  • Lump-sum payment: For illnesses listed in the policy documents, the insurer will pay the treatment costs in one payment.
  • Critical illness insurance: Major critical illnesses, including cancer, tumours, heart conditions, kidney failure, etc., are covered.
  • Total and permanent disability: Under a special variation of the critical illness insurance rider, one may also obtain health insurance for complete and permanent disability.

Benefits of a Critical Illness Policy

The benefits provided by critical illness insurance policies differ from those of conventional health insurance policies in some specific ways. Let’s analyse these advantages:

  • Many critical illnesses are covered: Major critical illnesses are covered by a critical illness insurance policy. It is crucial to thoroughly read the policy paperwork to understand the number and types of illnesses that are covered.
  • Serves as a substitute for income: If a person is diagnosed with a serious illness, his or her health problems may make it impossible for them to continue working. A financial crisis may arise for the family in such a circumstance. The claim sum could be used for the treatment of the illness, and the life insured won’t have to break the bank if the policyholder has complete coverage under a critical illness insurance policy.
  • Financial assistance when needed: With a critical illness policy, the policyholder can select a high sum insured level, guaranteeing complete financial protection in the case of many illnesses or advanced medical care. A lump-sum payment is made to the insured if the policyholder is found to have one of the serious illnesses covered by the policy, covering both the cost of treatment and any necessary surgeries.
  • Low-cost Premiums: It’s crucial to have both a standard health insurance policy and critical illness insurance coverage if a person has any significant illnesses or pre-existing conditions. These plans can also be acquired for a reasonable premium cost. Online comparison tools allow insurance purchasers to compare policy quotations and select the most advantageous option for their needs.
  • Tax Advantage: According to Section 80D of the Income Tax Act, the life insured may be eligible for a tax exemption on the premiums paid for the policy. Under Section 80D of the IT Act, you may receive a tax exemption of up to Rs 15,000. The upper limit for older citizens is Rs. 20,000.

Things you should know about critical illness insurance policies

Before purchasing a critical illness policy, consider a few things:

  • Amount of Coverage: Your unique situation will determine how much coverage you require. Aside from lost wages if you are inept at work due to the disease, take into account the expenditures of treatment and recuperation.
  • Policy Benefits: The policy benefits are still another crucial factor to take into account. If you are afflicted with a disease, some policies may give you a single sum, while others will cover your medical costs and missed wages. Choose a policy that satisfies both your demands and your budget.
  • Deductibles and co-payments: Deductibles and co-payments are common features of the majority of critical illness insurance policies. Before obtaining a policy, make sure to check the deductibles and co-payments of various options.
  • Premiums: Of course, you’ll want to think about how much the coverage will cost. The cost of insurance might differ greatly across different companies. Before obtaining a policy, make carefully evaluate the premiums of several options.
  • Exclusions and Limitations: Exclusions and limitations are a part of all insurance policies. If you want to know what is not covered by your insurance, make sure you read even the small print.

These are some of the considerations to make when purchasing critical illness insurance. Finding the best coverage for you and your family will be crucial in ensuring that critical illness insurance is a worthwhile addition to your health insurance plan.

Whenever it comes to health insurance plans, a critical illness insurance policy is a big change. Having this addition in place can help to provide a patient with a much-needed financial safety net because the cost of treating these conditions can take a significant toll on your finances. For those who have the ailment, having critical illness insurance coverage is a good idea. You may make sure they have adequate coverage to pay for treatment costs and provide financial security for their family with the assistance of a critical illness insurance plan. 

Disclaimer – The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales

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