Being diagnosed with a critical illness can be both mentally and financially devastating for both the patient and their family members. In this case, having a critical illness insurance cover can help ease the financial burden significantly. Such insurance plans are designed to cover more than basic health insurance concerns. They pay a lump sum amount when the insured gets diagnosed with a critical illness that is covered under the plan such as stroke, heart attack, and cancer. This feature helps individuals to lower high medical costs and allows them to focus on their recovery. However, to make the most of such plans it is important to pay attention to their scope, exclusions, limitations, and waiting period when comparing popular plans. Having an insight into these aspects allows individuals to make the most of their coverage and secure their financial future effectively.
What is a Critical Illness Policy?
A critical illness insurance policy is a comprehensive insurance plan that offers the insured a lump sum amount when they get diagnosed with a critical illness covered under the policy. Typically, a critical illness plan accounts for disorders such as renal failure, cancer, and cardiac disorders. Such an insurance policy provides the insured access to financial assistance that will enable them to meet the rising cost of medical treatment and focus more on their timely recovery.
Key Features of Critical Illness Insurance
These top features of a critical illness set the plan apart from others, making it ideal for those who want financial protection against medical situations that can erode their savings –
Comprehensive Coverage:
A comprehensive critical illness policy safeguards the insured against multiple critical illnesses such as tumors, cancer, cardiac arrest, and renal failure. Such coverage offers substantial financial assistance once the insured gets diagnosed, offering them peace of mind and required aid.
Lump-sum payout:
Typically, the insurance provider offers a one-time payout to the policyholder for their treatment of critical medical issues covered under the insurance plan and meets the policy terms.
Tax Reliefs:
Individuals are entitled to claim tax rebates under the provisions of the Income Tax Act of India, 1965. For instance, under Section 80D of the act, individuals can claim a deduction of up to Rs. 15,000 on their taxable income in a year. When it comes to senior citizens, they are entitled to claim a maximum rebate of up to Rs. 20,000.
Things to Check Before Getting a Critical Illness Policy
Critical illness coverage can prove effective only if the life insurance includes the following features and benefits to ensure comprehensive coverage that comes in handy during medical emergencies.
Sum Assured:
Individuals’ choice of critical illness insurance coverage is the most critical part as it helps determine whether individuals would be able to face financial challenges during medical emergencies or not. This is why it is advisable to pick a policy whose cover would help cover their needs and requirements. Generally, the cost of treatment varies substantially and with the rising treatment cost, it has become imperative to get an insurance cover that is adequate to account for medical treatment and related charges. To ensure that first, individuals need to assess their cover requirements. They can either get an insurance quote from their choice of insurance company or use an online premium calculator to estimate the coverage and premium.
Premiums:
Critical Illness covers with affordable premiums are the best means to avail of financial cover against medical emergencies. This helps to access substantial coverage in times of need against affordable premiums.
Hassle-free claim process:
It is imperative to pick an insurance policy that comes with a simple claim process. This is the only way to ensure that the insured and their family members do not go through a cumbersome process to get the claim settlement during a medical emergency when they need access to cash the most. Selecting a plan with a simple claim process allows individuals to focus more on their treatment and recovery without being worried about the settlement process.
Wide coverage:
Individuals must review the entire list of critical illnesses covered under the policy to ensure that they avail of wide coverage against multiple diseases. Such an idea would allow individuals to prepare necessary contingencies and seek avenues that will help them face medical challenges more effectively.
Individuals typically look for a plan that covers illnesses such as coma, cancer up to a certain stage, heart surgery, and cardiac disorders to ensure comprehensive coverage is available at their disposal.
Policy Exclusions:
Individuals should also look for policies with minimum exclusions. Such policies can help individuals avail of wide coverage and help them prepare against the unforeseen. Notably, the list of exclusions tends to vary among insurers. However, most insurance plans do not cover common circumstances such as – illnesses promoted by internal or external congenital issues and illnesses diagnosed during the insurance policy’s standard waiting period. Additionally, illnesses caused due to one’s poor lifestyle habits like smoking or alcohol consumption.
Why is a Critical Illness Insurance Policy Important?
With a sharp increase in medical costs and rises in lifestyle disorders caused due to sedentary lifestyles, rampant pollution, and poor dietary habits.
Amplified by these factors and the risk of developing critical illnesses with increasing age it is crucial to have an insurance policy that covers them.
With illnesses like cancer, cardiac disorders, stroke, etc. becoming more rampant in the era of stress and pollution, having a comprehensive cover has become more vital now than ever.
Such an insurance cover serves as a financial security net that enables individuals to meet their treatment costs and avail of required medical assistance.
How to Use an Online Critical Illness Calculator
An online critical illness insurance premium calculator can be easily accessed online today and that too for free. Individuals can browse the internet and access a reliable critical illness calculator to determine the estimated insurance coverage and premium amount.
By following these simple steps individuals can determine the key details –
Individuals can easily access and use it by following these steps –
Step 1: Look for an insurance premium calculator
Step 2: Navigate to the critical illness calculator page
Step 3: Open the online calculator
Step 4: Enter relevant insurance details into the calculator’s relevant fields
Step 5: Click on the Calculate button
Once these steps are followed, the tool will display the premium and coverage details on the screen. The above-discussed features and benefits of critical illness coverage make the insurance ideal for building protection against unforeseen medical emergencies. However, it is advised to check the policy’s features and limitations in detail to make an informed choice. They should also weigh their financial standing to understand which policy to pick and whether its premium suits their financial standing or not.
