Tips to buy critical illness health insurance policy
Tips to buy critical illness health insurance policy
What is Critical Illness health Insurance?
Critical illness insurance is a type of health insurance that provides a lump sum amount to the insured if he has cancer, Critical illnesses like major burns, coma are diagnosed. (as listed under the policy chosen). Tax Insured can use the amount to pay for medical expenses but meet other financial obligations to see also.
We are constantly dealing with junk food, stressful work situation, and family responsibilities in our current lifestyle.
Come face to face, it is easy to fall prey to serious diseases. And when that happens, Critical Illness Insurance What happens inside your back pocket can be a lifesaver.
Types of diseases covered under critical illness insurance
Here is a list of some of the common critical illnesses against which critical illness health policies usually provide coverage.
- Cancer (up to a specified stage)
- heart attack
- kidney failure
- organ transplant
- bone marrow transplant
- loss of speech
- Major burns
- Brain surgery
- Ophelia syndrome
- Goodpasture syndrome
- open heart replacement or heart valve repair
- Benign brain tumor
- Open Chest CABG
- Alzheimer’s disease
- primary Parkinson’s disease
Tips for critical illness health insurance
1- Who should take this policy?
Considering the hectic modern lifestyle, no one is safe from serious diseases like cancer, stroke, etc. That’s why most of us should go for a critical illness plan.
However, to be precise, we have listed below a few categories that can majorly benefit from this insurance. Let’s learn about them.
Keep these conditions in mind before taking a critical illness plan
Family history of critical illness
- Generally, serious diseases are genetic. For example, if your mother suffers from a serious disease, you are more likely to catch it. And if it does, coverage with critical illness insurance can be easy.
Sole earner of the family
- As 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.
- It has been observed that people who work in high-pressure and stressful job environments are more likely to develop some serious illness. So, if you can relate to this statement, a critical illness plan is necessary.
2- Determine the right coverage amount
Few require parameters that determine the right coverage amount for a person applying for critical illness insurance.
Location- The cost of hospitalization for any serious illness often varies greatly depending on the location where the person is receiving treatment. For example, if you live in a relatively small city like Haridwar, insurance coverage of Rs.15-20 lakh will be enough to meet your medical expenses.
But if you live in a big city like Bangalore, you will need a coverage amount of more than Rs 30 lakhs to cover your treatment and hospital bills. The cost of therapy varies from location to location. So you have to decide the coverage amount yourself.
Age of the Life Assured- Suffering from a serious illness in old age can make things worse. You have a higher risk of catching more diseases along with the current disease. To deal with them effectively, you need the support of one.
Lifestyle- Lifestyle is a required factor for a critical illness health insurance policy that helps to determine the right coverage amount. People who practice unhealthy lifestyle practices such as smoking or drinking alcohol are more likely to be diagnosed with an illness like cancer or kidney failure.
That’s why such people should go for plans offering maximum sum insured so that you can be financially prepared for it in case of illness.
3- Waiting period
Policy benefits become payable after a specified period, meaning if the policy has a waiting period of 4 months, then a claim is filed only after 4 months.
The time frame may vary depending on the chosen insurance company. Hence, it is advisable to go for a policy with less waiting period for such a plan.
Benefits of critical illness health insurance plan
Critical illness insurance policy provide coverage against certain life-threatening diseases. For this reason, the premiums of such plans are much lower as compared to regular health plans.
For example, you can buy a Care Critical Illness policy for Rs.1667/yr (5.16.10 Lakh) as compared to Care Comprehensive policy for Rs.9546/yr (5.15.10 Lakh).
The policyholder of a critical illness health insurance policy has a free hand to utilize the coverage amount as per his/her choice. It acts as a big advantage here as the sum insured can be used as an income replacement option, and help to cover his financial burden.
Under Section 80D the Income Tax Act, 1961, the owner of a Critical Illness policy on payment of regular premium will get Can avail tax benefits up to Rs.25,000.
If you are a senior citizen, you can get up to Rs 50,000 as a tax deduction. If your parents are senior citizens, you can get a tax deduction of up to Rs 50,000 for the premiums paid for them.
Conditions that are not covered
- Dental care and cosmetic surgery
- hormone replacement treatment
- to aid reproduction
- for venereal diseases
- military disease
- internal and external congenital disorders
FAQ/Frequently Asked Questions
Q.1- Will I get an option to cancel the critical illness health insurance policy?
Yes. Companies give 15 days (generally speaking) to the policyholder to review the TNC of the policy and cancel it if not satisfied.
The company will refund the premium amount after deducting the required charges.
Q.2. How is the premium amount determined for a critical care plan?
The premium amount for critical illness insurance is determined based on various factors- age, amount of sum assured, policy term, gender, medical history, etc
Q.3. Do critical illness plans offer a portability facility?
Yes. Many insurance providers allow individuals to port their policies. For more information, contact your chosen insurer.
4. Do all insurance providers cover the same critical illnesses?
No, this is not the case. You may find some common diseases covered by two/three providers, but it is difficult to find them all.
Before buying a policy, it is best to check the list of diseases covered by a chosen plan.