In today’s uncertain times wherein any given day, an individual’s life can turn upside down leaving him devastated both financially and emotionally, just getting regular health insurance policies is not enough to handle situations. This is when opting for critical illness insurance becomes an indispensable choice.
But what is the right course of action to choosing critical illness insurance which is right for you? If you are stuck on this same question in your mind, then your next five minutes with this article will surely help you.
What is Critical Illness Insurance?
Critical Illness insurance offers financial coverage for critical and life-threatening illnesses. Cancer, paralysis, and heart attack are some critical illness examples. Generally, this insurance policy provides a lump sum amount to the insured getting diagnosed with critical illnesses that are listed. Due to the uncertainty of such incidents, it is better to opt for critical illness insurance.
Critical Illness Insurance has the following features:
- Critical illness policies are offered by both health insurance and life insurance companies. Critical illness insurance can be opted as a single policy or with a basic health insurance policy or life insurance policy.
- It has a waiting period of 30 to 90 days, therefore any treatment done before this period of completion can’t be claimed.
- It provides coverage as a fixed lump sum on survival for 30 days after treatment of the critical illness.
- If after the lump sum payment against treatment, any amount remained can be used for any other requirements.
- According to Income Tax Act, 1961, under section 80D, a tax benefit of up to Rs. 25,000/- can be availed for self, spouse, and children. For senior citizens, the amount is Rs. 50,000/- annually.
- You can avail a tax benefit of Rs. 75,000 ( 25 – for self, 50 – for parents) only in case your parents are 60 plus years. If you buy critical illness insurance for your parents and your age is more than 60 years, the tax benefit will be up to Rs. 1,00,000/-
- You can have multiple insurances for critical illnesses and claim all in any unwanted case.
- Some of the common illnesses covered and listed under policies are:
- Cancer
- Stroke
- Coma
- Kidney Failure
- Primary Pulmonary Arterial Hypertension
- Major Organ Transplant
- Multiple Sclerosis
- Total Blindness
- Coronary Artery Bypass Graft
- Aorta Graft Surgery
- Heart Valve Surgery
- Paralysis
- Myocardial Infarction
When you opt for a critical illness policy, check the listed illnesses in it.
Consider these points before purchasing critical illness insurance:
- Growing Age
Generally, critical illnesses are more associated with aged people who suffer from illnesses like stroke, paralysis, etc. To avoid such situations, critical illness insurance is beneficial if you have an aged family member.
- Current Health Condition
If you are aware of your current health condition or can see your health is degrading due to unavoidable situations, you should get critical illness insurance to avoid further stress.
- Upcoming Medical Expenses
With growing healthcare inflation, you cannot expect future medical expenses to be under your income bracket. To avoid such helpless situations, you should opt for a reasonable premium to pay against getting insured with critical illness insurance.
- Insurance Premium
Check with different insurances with their respective premium amounts that offer maximum coverage. You can check the official websites of all insurance companies.
- Convenient Insurance Company
Observe the level of ease you are having in approaching the insurance companies for any query or doubt. How prompt they are providing service and the scope they are providing you ensures you enough against future uncertainties. Go with the one providing maximum convenience.
- Exemptions or Terms & Conditions
Carefully check for all the exemptions or terms and conditions in the policy before signing in. The illness you are expecting to bother you should be on the list of the insurance.
Wrapping Up
Since it is a matter related to life and death, go through policies and offerings carefully before signing any critical illness insurance. In that way, you and your family will be in safe hands.
