An additional premium is required for most health insurance policies to include a critical illness rider that covers exorbitant hospitalisation and treatment costs. The most expensive medical care required to treat long-term or serious illnesses is covered by critical illness insurance.
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An insurance policy covering critical illness can greatly reduce medical expenses associated with serious illnesses. Cancer, heart attacks, kidney failure, and other critical illnesses are all covered by the Critical Illness Policy.
Critical illness insurance plans include the following features:
If you were unable to work due to a critical illness, could you support your family financially? Moreover, how will you pay for the medical expenses incurred?
Our goal is not to scare you, but to make you aware of the severe situations a critical illness can bring on.
A critical illness policy is a foolproof way to protect yourself from critical illnesses. On diagnosis of covered critical illnesses, you will receive a lump sum payment.
Under the Income Tax Act of 1961, the policyholder can receive tax benefits. Income tax exemptions up to Rs. 15,000 are provided by Section 80D of the Income Tax Act of 1961. Under the same section, senior citizens can receive up to Rs. 20,000 in tax benefits.
Consider the following factors when choosing a critical illness insurance plan:
| The parameters | Information |
|---|---|
| Insured Amount | An amount equal to the sum insured in a lump sum |
| There is a waiting period | During the first 30 days after the policy starts |
| Time Period of Survival | Within 30 to 90 days |
| Covered diseases | Depending on the provider, there are 8-36 illnesses |
| Age of Renewables | Renewability over a lifelong period or maximum age |
When Neeraj learned he had a brain tumour, he was utterly devastated.
assured of Rs. 10 Lakh. However, his business revenue started declining, and he was devastated. His illness left him unable to conduct business as usual. Consequently, the business's financial health deteriorated (along with his health).
Like Neeraj, many people don't understand the difference between a health insurance policy and a critical illness policy
Critical illness health insurance plans differ in several ways.
| The parameters | Plans that cover critical illnesses | Plan for Health Insurance |
|---|---|---|
| Definition | Cancer, paralysis, and other life-threatening diseases are covered. | Hospitalisation expenses are covered as part of the coverage. |
| Advantages | The policy does not require hospitalisation to be eligible for benefits. The only requirement is diagnosis. | Bills submitted by the insured can be reimbursed for hospitalisation fees incurred. Additionally, network hospitals offer cashless services. |
| Coverage | There are 36 critical illnesses covered by this plan. | The plan covers pre-hospitalization costs as well as post hospitalisation costs |
| Waiting Time | Depending on the severity of the illness, there is a waiting period. | There is a 30-day waiting period. |
Please note that this list is not exhaustive and is only indicative. Different critical illness insurance policies cover different critical illnesses.
The following conditions are generally not covered by critical illness plans:
It is more important than ever to have a critical illness policy. In the 21st century, sedentary lifestyles are giving rise to a host of illnesses, most of which are critical in nature. According to different studies, critical illnesses are becoming more common. There is an increase in people developing or contracting critical illnesses, but the average age at which they do so is consistently decreasing. As a result, millennials are more likely than previous generations to develop critical illnesses.
As hospitals spend heavily on super-specialty equipment, the treatment is improving every day. As a result of medical inflation and this, treatment costs are rising. Medical bills can quickly spiral out of control when a person is hospitalised.
Breast cancer drugs like Herceptin (breast cancer medicine) can be pricey for women who have the disease. The patient requires at least 16 vials during the treatment. There is a considerable cost associated with that.
In light of the high costs of treating critical illness, opting for the best critical illness plan makes sense.
Critical illnesses typically run in families, which means they are hereditary. People with a history of critical illness are at a much greater risk of developing one themselves. Critical illness insurance policies are beneficial to those whose family has a history of critical illness.
An individual's role and importance as the family's primary breadwinner is paramount. The future financial security of the family will be severely impacted if something happens to them. Financial hardship may even be a possibility. Especially if a family member has a medical history, earning members of the family should purchase critical illness insurance protection.
High-pressure jobs have a high correlation with critical illnesses. Various studies have shown that people who work in high-pressure environments are at greater risk for developing a critical illness. Critical illness insurance is a great idea for employees whose jobs put a lot of pressure on them.
Critical illnesses are more likely to develop in people who are over 40. In their late 30s, they should purchase a critical illness insurance policy. In addition, they are likely to have a better financial position and be able to pay their premiums easily.
Contact your insurance company and register your claim if you need to file a claim. In most cases, you'll need these documents:
The claim team would verify the details once they received the above documents. Once your claim has been verified, it will be approved or denied. If your claim is approved or denied, you will be notified.
The following factors should be taken into consideration before purchasing a critical illness insurance plan:
Determining which insurance policy is right for you depends on the amount of cover. In some instances, critical illness treatment costs less than in others. You will be able to choose the right plan for your needs if you know how much coverage you want. Find the critical illness policy that works for you with a critical illness insurance quote from our website.
What is a critical illness rider? a rider, a standalone policy is more expensive, so it provides comprehensive coverage. As compared to a rider, a standalone critical illness insurance plan provides a greater scope of coverage. Although a rider may provide coverage for the same set of critical illnesses, the amount covered or the sum assured will be considerably less. The reason is that the rider depends on the base policy. The critical illness rider will only provide coverage for Rs. 2 lakh if, for instance, the healthcare policy or mediclaim covers Rs. 2 lakh. Insurance experts recommend choosing a standalone plan if you want comprehensive insurance coverage.
It is important to research the sub-limits of your critical illness insurance policy since they affect the costs you would incur. A critical illness insurance plan includes sub-limits applicable to the total sum assured. When a critical illness policy with a sum assured of Rs. 5 lakhs has a sub-limit of Rs. 1.5 lakhs for tests and Rs. 2 lakhs for surgery, it will cover up to Rs. 3 lakhs. According to the incurred expenses, you may have to pay up to 2 lakh from your own pocket. Some critical illness insurance policies cover surgeries better than others, while others may cover tests better. Before you purchase critical illness insurance, it is important to be aware of the limitations
Some of the general inclusions and exclusions of a critical illness insurance policy are listed above, but you should always read the policy to determine the exact inclusions and exclusions. As a result, you will gain a better understanding of the plan. A critical illness policy that focuses primarily on cardiovascular diseases may exclude coverage for cataracts or cancer, for example. Be sure to check the details beforehand if you are planning to insure against a particular set of diseases.
As a result, seniors have a higher risk of developing critical illnesses than young adults. According to insurance experts, you should choose a critical illness insurance plan based on your age.
Some critical illness insurance policies provide coverage up to a specified age while others provide lifelong coverage. If you are an insured, you should know when you can renew your policy. You may not be able to renew your policy after 60 years, for example. A critical illness insurance plan with a maximum renewal age is recommended by insurance experts.
Generally, critical illness insurance policies come with a waiting period. Therefore, the policyholder will be able to avail of critical illness insurance coverage following the expiration of the waiting period. Choosing a critical illness insurance plan with a short waiting period is recommended by insurance experts.
Protect your financial future with a critical illness policy.you can lose all of your savings in one fell swoop. A few clicks at Square Insurance will help you compare and choose the best critical illness plan. We can assist you in evaluating the available insurance policies based on your insurance needs. The best insurance plan at the best premium is what we will help you find. We have trained customer service representatives who can help you choose the right protection for your needs.
At Square Insurance, you can avail the following benefits:
As a rider as well as a standalone plan, Critical Illness covers you against critical illnesses. If an insured person is diagnosed with a critical illness such as cancer, multiple sclerosis, heart attack, paralysis, kidney failure, etc., they will receive a lump sum payment. Prior to claiming the first diagnosis, the insured has to wait for 30 days.
Ans: Critical illness is often excluded from standard health insurance policies. A lump sum payment is simply insufficient to cover the enormous expenses associated with treating such a critical illness, even if covered. To ensure your financial well-being, it is vital to get critical illness insurance.
A standard health insurance policy excludes major illnesses from coverage. When diagnosed with a covered illness, the insured receives a lump sum payment. A medical check-up is not necessary for most critical illness insurance plans up to the age of 45. These policies provide tax benefits as well as no-claim benefits.
Ans: Age, lifestyle patterns, location, and annual income are all important factors that determine the type of coverage you need.
The government generally requires proof of age, address, and identity. The insurance buyer may also need specific documents if he or she needs to undergo medical tests.
Ans: Life insurance plans do cover specific critical illnesses through add-on riders.
The majority of insurers cover you if you have coverage before the diagnosis. Certain insurers offer coverage after the diagnosis as well, but it varies from company to company.
Ans: Age, lifestyle patterns, location, and annual income are all important factors that determine the type of coverage you need.
