Should you take a critical illness cover with health insurance? Everything you need to know.
Critical illness cover is an extra cover that provides coverage against threatening diseases like cancer, renal failure, and liver transplants. The critical illness cover provides a lump sum compensation that is used to pay for the treatment costs of specified diseases, as well as recuperation and recovery expenses.
This medical insurance is different from an indemnity plan. In this cover, the payout amount is fixed, and the amount will be disbursed to you, irrespective of any medical expenses. The critical illness cover offers a lump sum payout.
It is advisable to opt for medical insurance with a critical illness cover, as the premium is low with bigger payouts, allowing you to access quality healthcare without any financial burden. The lump sum is disbursed to the policyholder after a survival period of 15 to 30 days, after contracting the illness.
A policyholder is free to purchase more than one critical illness policy, and each of the policies can be used for a different set of illnesses. Read ahead to know why it is important to opt for a critical illness cover.
The benefits of a critical illness cover are:
As the name suggests, the critical illness cover provides protection from expenses that arise after contracting any critical illness. Such illnesses are costly and require long periods of hospitalization and surgeries. Adding critical illness insurance to the policy provides greater coverage and reduces the financial burden.
Some other benefits of this cover are:
- The lump sum is disbursed in a single transaction. You don’t have to check with the insurance company about the next clearance. You have the entire money available, and can avail treatment at the best hospital
- The medical insurance covers up to 15 critical illnesses.
- Reputed insurance companies can customize the plans according to the need of the policyholder.
- The critical illness cover has the option of lifetime renewability
- As per Section 80D of the Income Tax Act, the cover is exempt from taxes, and the savings are up to Rs. 75,000.
Inclusions of the cover
The critical illness cover usually includes the following ailments:
- Heart attacks or other cardiovascular problems
- Cancer
- Stroke
- Paralysis
- Liver transplant
- Organ transplant
- Kidney failure
- Multiple sclerosis
Exclusions of the cover
The medical insurance policy with a critical illness cover does not include the following situations:
- Sexually transmitted diseases
- Accidents or injuries caused due to adventure sports
- Accidents or injuries caused by self-infliction
- Injuries caused due to war
- Treatment for obesity
- Cosmetic or plastic surgery
How to apply for a critical illness cover?
The process to apply for a critical illness cover is quite easy, and it is an additional layer of security. In order to add this cover, you must have an existing medical insurance policy. This cover helps to pay for any sudden and serious illnesses that have high treatment costs. If you are diagnosed with a serious illness, the insurance company will make a lump sum payment to cover treatment costs.
This cover is offered by insurance companies, and you can contact the agent to add the cover to your existing health insurance plan. There are various critical illness covers available, and you can even have more than one cover. Try and apply for this cover when you are younger, as the premium payments are low. Also, read the exclusions and the clauses carefully, before finalizing a policy.
Should you opt for a critical illness cover?
In today’s world, life has become very unpredictable. There have been many cases of critical illnesses affecting people of all ages, and life-threatening diseases are on the rise. There is no guarantee that you will require a critical illness cover or not, hence it is advisable to consider adding this coverage to your existing medical insurance policy.
- Genetics: Genetics plays an important role in determining critical illness. If you have a family history of heart disease or cancer, you are prone to contracting the disease. As a preventive measure, get a critical illness cover and secure your future, ensure that you get the best treatment possible, and reduce the financial burden.
- Sole earner: If you are the only breadwinner of the family, a critical illness cover becomes even more critical. You are responsible for your family’s future. This cover will reduce the financial stress of medical treatment, and will also provide compensation for any loss in income while you recover from the illness.
Key takeaways
For a happy and secure future, a critical illness cover is important. Any major sickness drains savings and increases all kinds of stress – emotional and financial. An add-on to an existing medical insurance policy, the cover will protect you and your family against any financial strain caused by these illnesses. Get a critical illness cover added to your policy now.
