Critical Illness Insurance
Critical illness is a serious health condition that has a debilitating effect on an individual’s lifestyle and requires a considerable amount of money towards treatment. It may also lead to loss of income due to inability to work.
What is a Critical Illness Plan?
You might debate that as you are covered in a comprehensive health insurance plan and also under group medical policy offered by your employer, you do not require any additional coverage. Well, yes, but any critical illness calls for specialized treatment & care and as your comprehensive health plan has limitations on hospitalization, doctors’ fees, etc. it will not cover the entire medical expense towards treatment. In simpler terms, there is a limit on certain expenses like prosthetic, intensive care or even medicines and your spending on such ailments is always more than what your health insurer will pay. In such cases, you’ll have no option but you’ll end up paying from your own pocket.
Examples of Critical Illnesses:
- Heart attack
- Major Organ Transplantations
- Kidney failure
How Critical Illness plan works?
A critical illness plan works differently from a Mediclaim plan. A Critical Illness plan is a health insurance plan that pays a lump sum amount, equal to the sum insured, to the insured on acquiring a serious aliment such as cancer or a stroke. A critical Illness cover provides a lump sum benefit which can pay for the cost of care and treatment, recuperation expense and even pay off any debt if taken. Regardless of your hospital expenses, the insurer pays the full sum insured.
Critical Illness Insurance Cover
Critical Illness Insurance Plans provides coverage against specific life threatening diseases. Treating such critical illnesses may require multiple visits to the hospital over a long period of time. What this means is that in addition to the hospitalization cost, there will be other costs like doctor visits, medical expenses, etc. A Critical Illness plan pays a lump sum amount that can be used to cover these high expenses .The good thing is that this lump sum payout is in addition to any mediclaim or health insurance policy that you may already have.
Reasons to buy Critical Illness Cover
Treating a critical illness takes time and money. If you are an earning member and are diagnosed with a major illness, it is quite likely that you will have to skip work to get treatment for it. This leads to a double trouble:
- Losing your monthly income
- Increase in expenses due to frequent visits to the hospital, high cost of medical tests and medicines that will be required for complete recovery.
5 things you should know about Critical Illness Insurance Policies
- A critical illness policy covers life threatening diseases like cancer, paralysis, heart attack etc.
- It can be a standalone critical illness policy or a critical illness insurance rider on another policy. There is no upper limit for the cover under a standalone policy whereas in a rider it is restricted to the cover of the base policy.
- The insured receives the sum assured when diagnosed with any of the critical illness included in the policy.
- No hospitalisation is required nor are any bills or receipts required to be submitted to claim benefit.
- Some policies have waiting period restrictions and critical Illness diagnosed within the waiting period are typically not covered.
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