A Critical Illness is a medical cover that provides financial assistance to the members insured in the event of hospitalisation due to critical illness, such as comma, stroke, cancer, catastrophic burns, etc. It provides a lump sum coverage which will cover excessive medical expenses in case of critical illness. It is an easy-to-acquire plan that is available for both family health insurance and individual insurance plans.
Factors Deciding the Price of an Insurance
By valuing the different factors, one can make an informed decision on which policy should be bought. Mentioned below are factors that help determining the Life Insurance Quotes and will help make a comparison:
- Sum Assured
To ascertain the amount of sum assured, one should consider the number of family members, present income, life objectives, and time for which financial support would be required.
- Tenure
It will depend on two further factors: how long your family would require financial protection in your absence and how long you can continue paying premiums.
- Age
Get the same coverage at a lower price than someone who buys it at a later age.
- Gender
Some insurance providers offer discounts to women.
- Medical History
In the case of any medical history, the premium amount can be increased. Also, if there is a smoking or drinking habit, then the premium would be on the higher side.
- Occupation
The premium amount will not be affected if applicants are doing service. However, in the case of business, as there are some health-related hazards and risks, the premium amount might go up.
Tax Benefits covered under Critical Illness Insurance
| Age | Beneficiaries Covered | Permissible Amount of Tax Deduction |
| Less than 60 years | Self or spouse, Dependent Children, and Parents | Up to INR 25,000 towards the premium paid Up to INR 25,000 towards the premium paid in case of parents below the age of 60 yearsUp to INR 50,000 towards the premium paid in case of parents above the age of 60 years |
| More than 60 years | Self, Spouse, Dependent Children, and Parents | Up to INR 50,000 towards the premium paid And INR 50,000 for the premium paid for parents above the age of 60 years |
How to Choose an Ideal Critical Insurance Cover
Mentioned are the parameters that help select an ideal critical insurance cover:
- Sum Insured
The sum insured should be equivalent to that in the basic plan.
- Waiting period
Opt for a plan with a waiting period as low as 30 days from the date of purchase of the policy.
- Survival Period
The policyholder has to survive for a certain minimum period once diagnosed with a critical illness. Normally, this time period ranges between 30 to 90 days.
- Number of Diseases Covered
Check for the number of diseases covered and opt for a plan which covers the maximum number of diseases. Generally, it is 8 to 36 diseases.
- Renewability age
Choose plans with lifetime renewability without age restrictions.
- Inclusions and exclusions
Review the associated terms and conditions to know what is covered and what is not covered under the plan. Also, check for waiting periods, pre-existing specifications, and specific diseases not covered by the plan.
Inclusions of Critical Illness Insurance Policy
- Cancer up to a certain specified stage
- First Heart attack
- Coma up to a certain level of severity
- Open heart replacement
- Repair of heart valves
- Open heart coronary artery bypass grafting
Exclusions in Critical Illness Insurance Policy
- Death within a period of 30 days once the critical illness or surgery has been diagnosed.
- Critical Illness Covered that is diagnosed within the waiting period
- Critical illness that occurred due to smoking, tobacco, alcohol or drug intake
- Critical illness that occurred due to internal or external congenital disorder
Who Can Buy Critical Illness Insurance Cover
Mentioned is a list of individuals who can buy Critical Illness Insurance:
- Individuals with a Critical Illness Family History
A family history of critical illness, such as heart and kidney diseases, stroke, and cancer, shows that you are more prone to diseases. Hence, making a decision about the treatment requires financial planning. To deal with it, investing in critical insurance is considered to be the wisest decision.
- Primary Earners
The sole breadwinner of the family has all the key responsibilities of the family on their shoulders. A critical insurance plan will hence avoid a financial crisis in the future in case any of the family members are diagnosed with any critical illness.
- Individuals with Demanding Jobs
As we know, stress can be harmful and trigger critical illnesses, such as cancer, heart attack, etc. In case of a stressful job, one should make investments in a critical care plan to avoid future financial stress.
- Individuals aged 40 and above
Once the age of 40 is crossed, one becomes more prone to critical illness diseases. Hence, it is better to invest in critical illness plans when you are in your 30s. At this age, finances are good enough to pay premiums.
Steps to Buy a Critical Illness Coverage
Mentioned are the steps to be followed to buy critical illness coverage:
Step 1: Ascertain the life insurance premium, depending on the desired amount of sum assured and policy tenure, using an online calculator.
Step 2: Once the basic insurance policy is chosen, now select the critical illness plan and disability rider to add critical illness coverage. It will help financially in case one is diagnosed with a critical illness, at just a little additional cost.
Step 3: once the plan is selected, which includes critical illness coverage, add the personal details and make payment of the premium.
Step 4: The critical Illness proposal form includes the medical history, smoking habits, and other lifestyle-related factors.
Step 5: A medical examination will be undertaken that will provide critical illness coverage. Once the form has been filled out and the documents have been submitted, a medical examination will be carried out.
How to File a Critical Illness Insurance Claim
Mentioned are the steps to be followed to file a critical illness insurance claim:
- File the critical illness insurance claim form.
- Government-issued photo ID along with NEFT details or a copy of void blank cheque
- All other documents related to the hospital stay of a patient
- Consultation records related to the diagnosis
- Details of the diagnostic tests undertaken along with medical records related to diagnosis.
Conclusion
If you are concerned about how a severe disease could affect your finances, critical illness insurance is something that should be looked upon. In times of financial hardship, it helps keep you surviving by providing protection against potentially catastrophic medical expenses.
