Critical Illness Insurance Policy

A critical illness health insurance is a benefit cover that pays the insured in a lump sum on diagnosis of a critical illness as specified in the policy document. One can use this lump sum amount to meet the treatment expenses, pay off debt, replace lost income, or make the necessary lifestyle changes for recovery if any.

You can be covered under a critical illness insurance policy by purchasing it on your own or under the one offered to you by your employer as a voluntary benefit. Also, you can add it under a life insurance plan, if you have any, which may save you some money too.

There are several health insurance plans in the market that cover critical illnesses and offer other benefits to the policyholders as well. To know more about these plans, refer to the table below:

Unlike regular health insurance plans, critical illness insurance plans cover serious and long term illnesses that require expensive medical treatment and hence, come with high sum insured options. These plans are specially designed to compensate for the loss of income and treatment expenses in case the insured suffers from a critical illness.

Common critical illnesses that critical illness insurance policies usually cover are given below:

1. Cancer
2. Kidney failure
3. Coma
4. Stroke
5. Major burns
6. Brain surgery
7. Blindness
8. Apallic syndrome
9. Goodpasture's syndrome
10. Open heart replacement or repair of heart valve
11. Heart attack
12. Benign brain tumour
13. Open chest CABG
14. Alzheimer's disease
15. Primary Parkinson's disease

Critical illness insurance plans cover specified diseases that may vary from insurer to insurer. To ensure the best use of a critical illness policy at the time of need, one must be completely informed of these diseases.

Types of Critical Illness Health Insurance Covers

Critical illness covers offered by general insurance companies as well as health insurance companies come in the following ways:

1. Rider: A rider or an add-on benefit is an additional benefit that you can purchase under a traditional health insurance policy voluntarily by paying an extra premium. In this type, the coverage depends on the base policy under which you are buying a rider. But in this case, the coverage amount of the base policy cannot be exceeded. One of the benefits of buying a rider is that there is no requirement for a medical test.

2. Standalone Policy: A standalone critical illness policy is a fixed benefit policy that provides comprehensive coverage to the insured. This is more flexible in terms of sum insured. To be covered under this, a medical test is required. Also note that a standalone critical illness can be ported to a similar insurance policy but a rider alone cannot be ported.

Benefits of Critical Illness Insurance Policy

Critical illness health insurance plans offer the insured the following benefits:

• Act as Income Replacement: Not only physically, but critical illness affects the patient as well as his/her family financially as well. With a critical illness insurance policy, the insured gets a lump sum amount that he/she can use to cover the medical or household expenses.
• Tax Benefits: You can avail tax benefits under a critical illness insurance policy. The premium paid for critical illness plans are eligible for tax benefits under Section 80D of the Income Tax Act, 1961 along with medical insurance.
  
• Easy Claim Process: To avail benefits under critical illness insurance plans, hospitalisation is not necessary. This means one can make a claim simply on the basis of diagnostic reports.
• Short Waiting Period: Critical illness insurance plans generally come with short waiting periods of up to 3 months. This means that the insured can start availing of policy benefits soon after being covered.
• Peace of Mind: Critical illness insurance offers peace of mind to the insured so that he/she can concentrate more on the medical treatment instead of worrying about the finances.
• Covers Treatment on a Foreign Land: Under a critical illness plan, the insured gets a lump sum amount on diagnosis, which he/she can use to get treated in India or abroad. This means one can avail of treatment anywhere as per their preference.
• Add-On Covers: Many insurers offer add-on covers along with critical illness plans that the insured can voluntarily opt for a Wellness coach, second opinion, etc.

Critical Illness Health Insurance vs Health Insurance Policy

Regular health insurance reimburses the medical and OPD expenses incurred during hospitalisation. They may not cover all the diseases and also come with long waiting periods. Critical illness policies, on the other hand, cover life-threatening diseases such as stroke, cancer, etc., and pay the insured in a lump sum on diagnosis. These plans are not associated with hospitalisation. Also, critical illness plans come with lesser waiting periods and greater sum insured amounts as compared to regular health insurance policies.

Why Should You Buy a Critical Illness Cover, (Even If You Already Have a Mediclaim Plan)?

Unlike a regular health insurance policy that covers you for hospitalisation expenses, a critical illness policy is a fixed benefit policy that offers you a lump sum amount in case you are diagnosed with any critical illness like cancer, stroke, etc. according to the coverage. Usually, health insurance insurance plans do not offer cover for critical illnesses. And even if they do, they offer it as an add-on cover, thereby charging extra premium, which even then may be insufficient. On the other hand, critical illness insurance plans offer you extensive cover for all the critical illnesses listed under the policy. One should go for a critical illness policy even if they have a health insurance policy offered by their employer or otherwise, because a critical illness can occur to anyone at any time during a lifetime and also because the expenses incurred on their treatment is huge.

What's Not Covered by Critical Illness Insurance?

Exclusions vary with different critical illness insurance plans. Generally, these plans do not cover you for the following expenses:

• Treatment taken outside India
• Any dental care or cosmetic surgery
• Expenses related to hormone replacement treatment
• Infertility treatment or treatment to assist reproduction
• HIV/AIDS
• Death within 30 days of diagnosis of critical illness or surgery
• Pregnancy or childbirth-related critical illness
• Critical illness developed by tobacco, smoking, drug intake, or alcohol, etc.
• Illnesses caused due to terrorism, civil war, navy or military reasons
• Any critical illness diagnosed within the waiting period
• Any critical illness arising due to internal or external congenital disorder.

Why is it Important to Have a Critical Illness Cover?

A critical illness cover offers additional coverage to the insured, for medical emergencies such as stroke, heart attack, cancer, etc. considering the fact that these emergencies or illnesses often incur greater than average medical expenses, so the under person insured under these policies get cash to cover those expenses where a tradition health insurance policy may fall short of.

How To File A Claim For a Critical Illness Policy?

Under a critical illness policy, the claim can easily be processed on the basis of a diagnostic report. If you want to file a claim, then you need to contact your insurance company and register your claim. Generally, the following documents are required to make a claim under a critical illness insurance plan:

• Duly filled claim form
• Photocopy of ID card
• Detailed discharged summary
• Medical certificate received by the doctor stating the diagnosis of the critical illness

Once the insurance company will verify the details, on the basis of which the decision related to your claim request will be made. Whatever the decision will be, it will be conveyed to you.

How To Buy Critical Illness Insurance Online at InsuranceBox

Purchasing critical illness insurance policy online at InsuranceBoxis a transparent, paperless, and easy process that takes just a few minutes. To own a critical illness policy online, you will be required to follow the steps given below:

• Visit InsuranceBox then click on the ‘health' tab.
• Select your Gender and enter your Name and Mobile Number. You will receive a One Time Password on the entered mobile number. Kindly enter that.
• Tell us ‘When do you want to buy the policy' by choosing one of the options from the drop-down menu. Click on the ‘View Quotes' button.
• Select the member(s) of your family you wish to include in the policy and click ‘Continue'.
• Select the age of your family member(s).
• Enter your Email ID and City. Click on ‘Submit and View Quotes'. You will see the most suitable quotes for you on the screen. Select the one you wish to buy.
• Select the term for your shortlisted policy. Fill in the required details. Please pay online via secured gateway.

Who Should Purchase Critical Illness Insurance Plan?

With the onset of technology, healthcare treatments are getting better with each passing day. This is the reason behind the increasing cost of treatment alongside medical inflation and in case an individual gets hospitalized, then undoubtedly it can drain holes in their pocket.

Therefore, taking into consideration the treatment costs for critical illness, going for a good critical illness plan, is most likely known to be an optimum solution.
Here is a list of individuals, who are suggested to purchase a critical illness insurance plan:

• Individuals having a Family History of Critical Illness: Most of the critical illnesses are genetic (means, it runs in the family). Moreover, an individual with a family history of critical illnesses is comparatively at a higher risk of developing the same. Therefore, it is highly recommended for individuals with a family history of critical illnesses to go for a critical illness insurance policy.
• Sole Breadwinner of the Family: For a sole bread earner of the family, the safety of their family members is of utmost priority. Therefore, it is recommended for such individuals to get them as well as their family members insured under a good critical illness insurance policy, in case they do not want their families to witness any financial distress in the future that can possibly arise due to any unforeseen circumstances such as diagnosis of a critical illness.
• Individuals with High Pressure Jobs: There is a high correlation of critical illness with high pressure jobs. As per several studies and researches, individuals working in a highly competitive environment are at a much higher risk of developing critical illness. Therefore, people having jobs that puts a higher pressure on them should definitely consider buying a critical illness policy.
• Individuals Aged Above 40 Years: Individuals who are above 40 years in age are more vulnerable to develop critical illness. Henceforth, it is recommended for them to purchase a critical illness insurance plan in their early forties. Also, because by that time they would be in a financially well-off condition and can easily pay their policy premium.
  Note: A critical illness insurance plan can be availed either as a rider or a standalone plan. Although, the rider plan is much economical but it generally covers lesser critical illness in comparison to standalone critical illness insurance plan. Therefore, in case, one is seeking extensive coverage, then they should consider purchasing a standalone plan.

Factors to Keep in Mind While Opting for a Critical Insurance Policy

So, if you don't know how to select an ideal critical illness plan, then you must ensure to check the following points:

1. Sum Insured: The coverage amount is important to understand which policy works the best for you. So, when selecting a critical illness policy, you must select the one with enough coverage.

2. Standalone Critical Illness Policy or Rider: A standalone critical illness insurance policy comes at a higher insurance premium but also offers comprehensive coverage. A rider on the other hand comes at comparatively lower premium but does not offer extensive coverage. So, you must consider the pros and cons of both when choosing between them.

3. Number of Illnesses Covered: Different insurance companies offer coverage for different illnesses under a critical illness plan. Mostly, the insurers cover you for critical illnesses like cancer, stroke, paralysis, kidney failure, etc, but not many will cover you for Alzheimer's disease. So, before deciding on one, you must check the number of critical illnesses your policy covers you for.

4. Exclusions Under the Policy: Similar to diseases covered, the exclusions may also vary with different critical illness insurance plans. So, to gain better understanding of the plan and avoid any discrepancy at the time of claim settlement, you should check the exclusions and ask your insurance provider in case of any doubt or query.

5. Survival Period: Survival period is the period that the insured should survive after after the diagnosis of critical illness. Usually, this period is of 30 days, but varies from one insurer to another, and hence should be considered before buying a plan.

6. Waiting Period: It is important to check the waiting period as you will not be able to make any claim under your policy before completion of this period.

7. Pre-Existing Diseases: Not all insurance companies cover you for pre-existing diseases under a critical illness insurance policy. The ones that do, come with a waiting period for pre-existing diseases. So, it is imperative to check the same before buying.

8. Maximum Renewal Age: There are certain critical illness insurance plans that offer coverage up to a specific age whereas others offer lifelong coverage. So, it is important to know the specific age till which time you can renew the plan. For some of the critical illness plans, an insured cannot get their plan renewed after a specific age, say 65 years. As per the expert opinion, it is recommended to go for a critical illness insurance plan with maximum age allowed for renewal.

Need for Buying a Critical Illness Policy

Now, more than ever there is a need to own a critical illness insurance cover. Due to the increasing rat race and desk-bound lifestyle, more and more individuals are now suffering from various types of illnesses which are severe in nature. As per various studies, there is a rapid increase in the number of individuals falling victim to various critical illnesses. While, there has been a significant increase in people developing critical illness, on the flip side, the age at which individuals are falling prey to such illnesses is decreasing. It simply means that the millennial generation is today more prone to contracting critical illness in comparison to the generations before.

Why You Should Buy Critical Illness Cover From InsuranceBox?

To make the best use of time, you must buy critical illness cover online at InsuranceBox. The platform allows you to compare and find the best critical illness policy within a few clicks. Other benefits that you can avail of are as follows:

• There are several critical illness insurance plans from top insurance companies available at InsuranceDekhko. You can compare these policies and choose the right one for yourself.
• InsuranceBoxoffers affordable critical illness plans.
• Trained professionals to guide you throughout the process and even at the time of claim settlement.
• Online premium calculator to get an estimate of premium to be paid for different critical illness plans.

At InsuranceBox, you can purchase critical illness insurance policy in two ways, i.e. online and offline mode. To purchase the policy online, you will be required to visit the Health tab on InsuranceBox's website and fill out a quote. Whereas to purchase it offline, you must contact the customer care executives on the toll-free number and share your requirements.