How To Buy Critical Illness Cover With Life Or Health Insurance Policy

What is a Critical Illness Policy?

An insurance policy for critical illnesses protects the insured from fatal critical illnesses like cancer, heart attacks, renal failure, etc.

This critical illness policy offers a lump sum amount of coverage that can pay for expensive medical costs associated with critical illnesses that are covered by the family health insurance plans. *

Characteristics of Critical Illness Plans

The characteristics of a critical illness health insurance plan are as follows:

  • Critical Illness Coverage: Up to 36 serious critical illnesses, including cancer, kidney failure, heart problems, and tumours, are covered.
  • Lump-sum Payment: For the treatment of diseases that are covered by the insurance, a lump sum payment is made by the insurer.
  • Quick Claim Processing: Based on the diagnosis report, the claim can be completed quickly (s).
  • Waiting Period: Typically, coverage is given following the conclusion of the waiting time.
  • Income Loss: A portion of the lump sum may be utilised to replace lost income.

Critical illness insurance benefits

Have you ever worried about what would happen to you and your family if a serious sickness prevented you from working? Additionally, how will you pay for the medical bills you have incurred?

Purchasing a critical illness best family health insurance plan is the only surefire plan to protect yourself from serious illnesses in the future. Upon being diagnosed with one of the catastrophic illnesses covered by it, you will get a lump sum payment.

Advantages of Critical Illness Insurance for Tax Purposes

According to the Income Tax Act of 1961, the policyholder is eligible for tax benefits. Section 80D of the Income Tax Act of 1961 allows for a tax exemption of up to Rs. 15,000. Under the same section, senior citizens are eligible for a tax benefit of up to Rs. 20,000. **

Health Insurance Plan vs. Critical Illness Insurance Plan

Neeraj was totally devastated when he learned that he had a brain tumour. His health insurance plan, which had an amount assured of Rs. 10 lakh, covered the costs of the necessary medical treatments. Having said that, he was heartbroken when his company’s revenues began to decline. The severity of his condition prevented him from managing his firm. Like Neeraj, many consumers are unaware of the distinction between health insurance and critical illness insurance.

Here are the distinctions between a health insurance plan and a critical illness insurance plan.

Parameters Critical Illness Insurance Plan Health Insurance Plan
Meaning It covers life-threatening diseases like permanent paralysis, tumour, etc. It provides comprehensive health insurance coverage and also includes hospitalisation expenses.
Benefits To receive benefits under the coverage, hospitalisation is not necessary. For a lump-sum payment, a diagnosis is sufficient. By providing receipts, the insured can request compensation for hospitalisation costs incurred. He can also use the cashless system at hospitals in the network.
Coverage It covers up to 36 critical illnesses. It offers extensive coverage and includes pre-hospitalization expenses and post-hospitalization expenses
Waiting Period There exists a waiting period that depends on the severity of the illness. There exists a waiting period of 30 days.

A critical illness policy is required

A critical illness policy is more important than ever right now. The sedentary lifestyle of the twenty-first century is causing a variety of illnesses, most of which are life-threatening. Several studies point to a consistent increase in the number of persons contracting serious illnesses. While the number of persons who develop or acquire critical illnesses is rising, the average age at which people do so is steadily falling. This indicates that, in comparison to past generations, millennials are more likely to suffer from serious illnesses.

A health insurance premium calculatoris a tool you may use online to determine the amount of coverage required based on your needs.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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