India's 1st IRDAI Approved Insurance Web Aggregator

All you need to know about critical illness insurance plans

To tackle rising medical expenses, having a health insurance policy with critical illness insurance is the need of the hour. These policies help to cover the exorbitant medical expenses of deadly illnesses such as heart attack, cancer, and others.

By: Sachin Telawane | 
Read Time: 3 minutes, 38 seconds | 
Last Updated: 27-01-2022
All you need to know about critical illness insurance plans
Over the past 2 years, we have seen health care expenses touch the skies. The medical inflation rate has doubled in these years, which means the cost of medical care has shot up. To tackle rising medical expenses, having a health insurance policy with critical illness insurance is the need of the hour. Health insurance is a type of insurance that covers medical expenses. Some medical expenses are extremely high and can burn a hole in your pocket. Let’s understand what these medical expenses are in health insurance.
 

What are the critical illness insurance policies?

Insurance that covers the expenses of specific life threatening diseases is known as critical illness insurance. Critical illness insurance provides a lump sum amount to the policyholder on detection of critical illness. These policies help to cover the exorbitant medical expenses of deadly illnesses such as heart attack, cancer, renal failure and others. The need for having a critical illness can be realized with the unhealthy lifestyle and uncertainty of life. Normal health insurance plan cover might not be sufficient for treatment of critical illnesses.

However, a standalone critical illness cover provides you cover against roughly 50-60 life threatening health conditions. These illnesses are covered in your health insurance policy by default.  To utilize your policy on detection of such critical illnesses it is important we understand the different features of a Critical illness insurance beforehand.
 

Features of Critical illness insurance plan

#1.Critical illness cover
One of the key reasons for buying a critical illness insurance plan is to cover the hefty expenses of life threatening diseases. Each insurance company covers numerous critical illnesses under their policy.
 
#2.Lump sum payment
If the policyholder of a critical illness insurance is detected with any of the critical illnesses listed by the respective health insurance company, then the entire cover amount will be given to them. This is irrespective of the actual expenses incurred during the treatment of the illness.

#3.Easy claim settlement
Critical illness expenses can burn a hole in your pocket and to avoid such a situation, critical illness insurance comes in as a savior. When you have critical illness insurance, claim settlement turns out to be at ease.

#4.Higher coverage at low cost
One of the USP of critical illness insurance is that you get a huge cover at a very nominal premium. The number of illnesses covered under the policy, higher is the premium charged. Apart from having a base health insurance plan, it is advisable to have critical illness insurance. You can compare the quotes of various health insurance policies and choose the best one that fulfils your criteria.

#5.Tax benefit
You can avail tax exemption on the premium paid towards the critical illness insurance policy under section 80D of the Income Tax Act. Tax exemption under this policy is upto Rs.25000 for individuals below the age of 60 years and Rs.50000 for individuals above 60 years of age.
 

Critical illness vs Health insurance

Critical illness insurance covers different aspects as compared to the base health insurance plan. Let’s take a look at the key differences between critical illness insurance and health insurance.
 

Parameters

Critical Illness Insurance

Health Insurance

Coverage

Different health insurance companies cover a varied number of life threatening illnesses.

An exclusive cover is provided under a base health insurance plan.

Meaning

Covers life threatening diseases such as tumors, permanent paralysis, cancer, etc.

It provides a comprehensive health cover including hospitalization charges.

Waiting period

The waiting period under critical illness depends on the severity of the illness.

There is a waiting period of 30 days for all illnesses.

Benefits

Lump sum amount is paid to the policyholder once a critical illness is detected.

The policyholder gets covered only up to the limit of actual expenses incurred during hospitalization.

 

Conclusion

It is ideal to have critical illness insurance for yourself if you are suffering from the same. Save yourself from spending too much for life threatening illnesses by having the right cover of critical illness insurance.  

You can also visit MyInsuranceClub to choose the best term insurance plan to protect your family from financial crunch. You can take Critical Illness covers as riders along with your term insurance plan to make it very comprehensive. Our trained and certified experts will guide you through each plan and help you buy the best plans.

Sachin Telawane
Sachin Telawane is a Content Manager and writes on various aspects of the Insurance industry. His enlightening insights on the insurance industry has guided the readers to make informed decisions in the course of purchasing insurance plans.

Leave a Comment

Important: Insurance is the subject matter of solicitation | © 2009-2022 MyInsuranceClub.com