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Benefits of Critical Illness Insurance

Lifelong Renewal

Most critical illness policies offer lifelong extendable. No maximum ceasing age, hence, one can buy the policy from 8 years to 65 years depending upon the insurer.

Flexible Payout

Critical Illness insurance offers flexible payment options upon diagnosis. Such as the lump-sum payment of sum insured or lump-sum payment plus 10% of sum insured paid each year for the subsequent 5 years.

Affordable Premium

The critical illness insurance premium is cheap as compared to health insurance. This is because the insurance will only activate upon diagnosing critical ailments covered by the policy.

Tax deductible

Premium paid for critical illness insurance policy is tax deductible upto Rs.15000 under section 80D of Income Tax Act. Also, the payout under the policy will be tax-free.

Quick guide to Critical Illness Insurance

What is Critical Illness Insurance Policy?

Critical illness insurance, also known as critical illness policy cover. In this insurance product, the insurer usually has the obligation to make a lump sum cash payment. If a doctor diagnosis a insured person with one of the serious diseases listed in the policy. The critical illness policy covers life-threatening diseases such as renal failure, heart attack, cancer, organ transplants, etc.

Through critical illness rider an insurance policy holder can avail an additional coverage in exchange of additional premium. The policy might also arrange to give money regularly to the person with the policy who is having surgery. Like a heart bypass operation.

Policy might state that person with policy must live a certain number of days after the illness is diagnosis. The period varies from company to company, 14 days being most typical survival period used.

Importance of Critical Illness Insurance

Security against Healthcare inflation

Critical illnesses do not only put strain on the body, but on the finances as well. With progress in the medical infrastructure, the medical cost is increasing too. This is important to prepare for it even when there is a faint possibility of a diagnosis.

Cover against Critical Illness

Critical illness insurance covers a specified list of life-threatening ailments. This is totally worth it if you have a family history of these ailments. Affordable premiums, you can help provide yourself with peace of mind and financial protection if emergency were to strike.

You can get it to make sure your finances are secure in case you have a sudden, serious, and long-lasting illness. With medical inflation on the rise, having a critical illness policy is necessary to safeguard against inflated nursed charges.

Features of Critical Illness Insurance Plans

Critical Illness policy generally contains the following significant features:

  • Comprehensive Coverage - Policy provide coverage to more than 32 illnesses including Cancer, stroke, end-stage renal failure, heart failure. Affordable rates provide policy holder with peace of mind and financial protection if an emergency were to strike.
  • Affordable Premium - Affordable premiums offer comprehensive coverage without straining your finances.
  • Quick Claim Settlements - Insurance company provides timely financial assistance through hassle-free claim process of settlements once it approves.
  • Customer Service - Customer service is available 24 hours a day, 7 days a week. Cashless
  • Claim Facility - You can avail of cashless claim facility at across numerous healthcare providers in the country.

Group most benefited by Critical Illness Insurance

Some key individuals benefitted by the policy include:

  • Individuals with a history of critical Illness in their family - If your family has a history of serious illnesses, there's a good chance you might develop one as well. Therefore, you must consider your family’s medical history when you are buying a basic insurance policy.
  • Primary or Sole Breadwinners - If you are the main person bringing in money for the family, your family expects you to cover more than just health expenses. Therefore, highly recommend choosing a critical illness insurance policy to maximize your health coverage.
  • Those engaged in high-pressure Jobs - Many individuals are not aware of it. But stress is the leading cause of multiple health issues. Stress can cause or aggravate heart issues. Therefore, consider purchasing a critical illness policy, as suggested.
  • People over the Age of 40 Years - Health issues may arise at the age of 40. So, even when you are in the best of your health, when in 40s, you must consider buying a critical illness insurance rider.
  • Women - The increasing cases of cancer in women are alarmingly high. Thus, buying a critical illness insurance is advisable if you are prone to such risks.

Advantages of Critical Illness Insurance Plans

You can buy a critical illness insurance plan at a lower cost compared to a regular health insurance policy. Reason being, where typical health plan covers multiple diseases, critical illness insurance plan is only for specific medical conditions.

  • Security against Healthcare inflation
  • Cover against Critical Illness
  • Covers mental health

A critical illness insurance policy offers coverage against life-threatening critical diseases like renal failure, heart attack, cancer, organ transplants, coma, etc. These policies offer one-time lump-sum coverage against the exorbitant cost associated with treating these diseases.

Alternatives to Critical Illness Insurance Policy

Experts with deep insurance knowledge suggest that alternative coverage exists, free from the limitations found in critical illness policies. For example,

  • Disability insurance - This provides money when you can't work because of health issues, and it covers various illnesses, not just a few. This is a good choice for those whose income would suffer during a long absence from work.
  • Employer-sponsored health plans - The term refers to health insurance obtained through an employer. Employer-sponsored coverage includes not only insurance for current employees but their families too.
  • Health Savings Plan - People can also save money separately to handle non-medical expenses that might come up if they have cancer and need time off work.

Tax Benefits under a Critical Illness Insurance Policy

In addition to providing you financial relief during health emergencies, the policy also offers tax benefits. You can deduct the money you pay for premium of a critical illness insurance policy from your taxable income. This action falls under Section 80D of the Income Tax Act of 1961.

Below are the tax benefits based on the Age:

  • Individuals under the age 60 can claim a tax deduction up to Rs. 25,000 per year, for their spouses and children.
  • Individuals aged 60 and above have the authority to maintain a health insurance policy or cover medical treatment. This is up to a maximum of Rs. 50,000.
  • One can also claim a deduction for the premium paid on behalf of their parents. If individual is below the age of 60, the upper limit for the tax benefit is Rs. 25,000. The threshold is Rs.75,000 for parents over the age of 60.

So, under Section 80D, if you pay a premium for your entire family, you can save up to Rs.75,000 on your taxes. If you are over 60 years of age and pay your parents' premium, you are eligible for a maximum deduction of Rs.1 lakh.

Selecting an Ideal Critical Illness Insurance Plan

Like other insurance plans, consider several factors when selecting the right critical illness insurance policy. Below checklist can help you purchase the best critical illness insurance in India:

  • Check the Coverage Amount - The payout should be sufficient to assist you financially if someone gets sick. You can make this decision based on your savings and overall financial situation.
  • Calculate Premium Rates - Most buyers shortlist critical illness policies based solely on the premium rates, which is legible. They can use an online premium calculator to get a critical illness health insurance quote online.
  • Exclusions and Limitations - All critical insurances come with exclusions and limitations. This is important to read the fine print to specifically understand what your policy does not cover.
  • Deductibles and Co-Payments - Deductibles and co-payments option is available in most critical illness policies. One should compare the deductibles and co-payments of different policies before purchasing one.
  • Ensure Less Waiting Period - Critical Illness plans, like any other health insurance plans, include a waiting period clause. We have a standard waiting period of 90 days (initial waiting period) and 48 months for pre-existing diseases.
  • Determine the Covered Illnesses - When you purchase the critical illness policy you must which diseases its covered. This is especially important if you are purchasing the policy because you have family history of a medical condition.
  • Learn About Renewal Policy - Regarding flexibleness, these plans typically impose an age limit. Select a plan with a higher age limit to renew easily at any life stage. Do this without causing complications for the policy holder. Additionally, it's crucial to keep close eye on claim-related details like process, limits for surgery, diagnostic tests, procedures.

Critical Illness Insurance Plan vs. Health Insurance Plan

  • Coverage - Critical Illness policy covers treated against over 32 life-threatening critical illnesses. health insurance covers different types of chronic diseases requiring standard treatment and treatment expenses.
  • Benefits - Critical Illness policy provides benefits of Pre and post-treated, organ donor cover, dialysis cover, psychiatric counseling. Health Insurance only covers In-patient treatment, pre and post-treated, daycare treatments, ICU charges, etc.
  • Survival Period - In a Critical Illness policy, the person covered must live for a specified period. Like 30 days, after the initial illness diagnosis. The time frame may vary from one insurer to another. We have no survival period in health insurance.
  • Waiting Period - For critical or serious illness Insurance, there is 90-Day initial waiting period (48 months for pre-existing diseases). A health insurance policy holder has a 30-Day initial waiting period and 48 months for pre-existing diseases.
  • Policy Period - Unlike Critical Illness Insurance, which is long-term policy, Health insurance can be annual or long-term.

Illnesses Covered under Critical Illness Insurance Policy

Policies vary, so it's important to analyse different critical illness policies from various insurers before deciding. This is important to find one that meets your medical needs and budget. A critical or serious illness insurance usually covers some common life-threatening diseases.

Cancer (up to a specified stage)Major burns
Heart attack Brain surgery
Stroke Blindness
Kidney failure Apallic syndrome
ComaGood Pasture’s syndrome
Organ transplantOpen heart replacement or repair of heart valve
Bone marrow transplantBenign brain tumour
Loss of speechOpen chest CABG
DeafnessAlzheimer's disease
ParalysisPrimary Parkinson's disease

Some other important benefits included in the plan:

  • Iconoclast and Radiation Therapy
  • In-patient treatment
  • Pre and post-treatment
  • Dialysis Coverage
  • No Claim Bonus
  • Healthcare Services
  • Ambulance Cover

Critical Illness Insurance - Inclusions and Exclusions

Critical illness insurance coverage will not cover if your medical condition isn't serious. A few situations (listed below), where critical illness insurance doesn't provide any financial support.

  • No coverage for dental care or cosmetic surgery.
  • Critical Illness or other medical condition not specified in the policy documents.
  • Hormone replacement treatment and related expenses.
  • Sterile treatment
  • Sexually transmitted diseases (STDs)
  • Critical illness develops because of consumption of tobacco, smoking, drug intake, or alcohol, etc.
  • Illnesses caused because of terrorism, civil war, or military conflicts.
  • Critical illness diagnosed within the waiting period.
  • Critical illness arising because of congenital disorders, both internal and external
  • Self-inflicted injury, attempted suicide, or suicide
  • Illness or injuries caused because of any breach of law or any criminal intent by the insured.
  • Pregnancy, miscarriage, childbirth, maternity including C-section, abortion, or complications resultant of any of these.
  • Damage caused by a nuclear, chemical, or biological warfare.
  • All the hazardous activities

To avoid disappointed with their insurance plan because of wrong information about the policy coverage limits. This is advisable for policy buyers to carefully go through the exclusions of policy plan.

Why Buy Critical Illness Insurance Policy Online from SecureNow?

SecureNow is an independent online broker for critical illness coverage. This means we're here to help you make the right decisions when protecting yourself and your family in case of illness. When you use our service online, offline, or over the phone, you get:

  • Free, independent, regulated advice about exactly what you need in a policy.
  • Help choose the right critical policy and insurer for you from the whole market.
  • Peace of mind that you're investing in the right thing when buying cover

SecureNow offers a comprehensive and cost-effective critical illness insurance plan. Consider it in the case of an unlikely health emergency. It scrutinizes the key points of Critical Illness Insurance Plan and suggest best Critical Illness Policy for you.

Through SecureNow, you can purchase a critical illness insurance plan at a relatively lower premium. With affordable rates, you can provide yourself, peace of mind and financial protection if an emergency were to strike.

Critical Illness Insurance Policy FAQ’s

Not all insurance companies provide the same type of coverage against critical illnesses in their plans. Most critical illness policies as a standard will include cancer, heart attack and stroke. Some Critical illnesses policies cover as many as 40 life-threatening illnesses.

This is therefore important to read the wording set out in the policy document. Choose a plan covering the critical illness you anticipate for personalized protection. Ideally, one should go with a critical insurance policy that covers maximum diseases.
Critical illness insurance claims are the plans that provide a level of financial stability if you become Critical ill. Critical Illness insurance policy provides additional coverage for medical emergencies, which often incur greater-than-average medical costs. These policies pay out cash to help cover cost overruns when traditional health insurance may fall short.
Buyers can opt for the critical illness plan at the same premium rates while purchasing basic life insurance plan. Many insurance providers who offer critical illness cover as an option or add-on to their life insurance product. While few other Insurers also provides an additional cover against permanent and total disability.
Yes, buying a critical illness cover is advantageous in the following ways:
  • The policy coverage acts as a safety net, protecting you in the most significant manner possible. It can cover 40 critical illnesses.
  • Insured have extensive financial protection for treated and advanced medical procedures, such as Iconoclast and radiation therapy.
  • Because this indemnity-based plan covers numerous medical expenses incurred throughout the year. A high sum insured provides you with total peace of mind.
  • Yes, term insurance covers critical illnesses. Individual can add a critical illness benefit on top of his/her base plan at an additional cost. And financially protect yourself against the various critical illnesses covered under the policy. Typically, this will encompass cancer, heart attack, and stroke as standard coverage.

    Critical Illness Insurance Policy Articles

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