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Must-Know Facts About Critical Illness Insurance Cover

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A serious or critical illness can turn life upside down. Along with the stress of health issues, the cost of treatment can be very high and may continue for a long time. However, if you have the right insurance, you receive a lump sum payout from your insurer upon being diagnosed with a covered illness. In this blog, we will explain what is critical illness insurance and share key facts about this policy.

List of Facts About Critical Illness Insurance

The following are some key facts about critical illness insurance:

1. Coverage for life-threatening conditions

It covers more than 15 life-threatening conditions, including cancer, stroke, heart attack, kidney disease and organ failure. Staying covered under this plan ensures better financial security during tough times.

2. Lump-sum payout

If someone is diagnosed with a covered life-threatening condition, the insurer will provide a lump-sum payout, after which the policy will cease to exist.

3. Survival period requirement

A critical illness insurance policy typically has a survival period ranging from 14-30 days. This means that after being diagnosed with a critical illness, the policyholder must survive for the duration specified in the policy to be eligible for benefits.

4. Budget-friendly premiums

Critical illness insurance offers a high sum insured, but the premiums are comparatively affordable. Insurance companies offer these plans at low premiums to encourage more people to invest and secure their health and finances.

5. Shorter waiting periods

Most critical illness plans have a short waiting period, so you won’t have to wait for a long time to claim the benefits in case of a diagnosis.

6. Hassle-free claim process

The claim process for critical illness insurance is usually simple and involves minimal paperwork. So, if a person is diagnosed with a covered illness, they can expect claims to be settled quickly.

7. Tax savings on premiums

Under Section 80D of the Income Tax Act, tax deductions can be claimed on the premiums paid for critical illness insurance.

Conclusion

Health issues, including critical illnesses, are increasingly affecting people of all ages, and their treatment is often long-term and expensive. That’s why it is wise to stay covered under a critical illness insurance policy. This coverage is especially important if there is a history of life-threatening conditions in the family. With a critical illness policy in place, you can opt for quality and timely treatment without worrying about the medical bills.

FAQs

1. Critical illness vs health insurance

A critical illness policy provides a lump sum payout if the insured is diagnosed with any of the specified life-threatening conditions listed in the policy.

In contrast, a health insurance policy covers a range of medical expenses, such as hospitalisation, pre- and post-hospital care, daycare procedures, AYUSH treatments, home healthcare, and ambulance charges, up to the sum insured.

2. Does critical illness cover all types of illness?

No, critical illness insurance doesn’t cover all illnesses. It only covers life-threatening conditions listed in your policy.

3. Is it possible to have both critical illness and health insurance?

Yes, it is a wise thing to invest in both. Health insurance covers hospital and treatment costs, while critical illness insurance gives a lump sum amount if someone is diagnosed with a serious illness.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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List of Critical Illnesses Covered in Health Insurance

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