Critical Illness Insurance: Features and Important Things to Know

 With the cost of healthcare soaring at a fast rate, being diagnosed with a critical disease can be taxing on both the patient and their family members. This makes it imperative for individuals to safeguard their financial future by building provisions for their health and well-being. In such cases, having comprehensive critical illness coverage proves useful for those looking at the financial burden of emergencies.

Typically, a critical insurance cover is designed to provide financial protection to the insured to help cover the expenses resulting from their critical illness diagnosis. Such plans pay out a lump sum amount to the insured following their diagnosis of a critical illness covered by the insurance, including heart disease, stroke, cancer, and kidney disease.

This financial cover allows the insured and their family to meet the cost of treatment and focus on recovery instead of being worried about medical expenses. Since a lot depends on the plan and its coverage, individuals are urged to look at the accompanying features of the insurance and check the exclusions carefully to understand the full scope.

This will help them understand whether critical illness insurance would be useful in times of need and whether it could safeguard the financial interest of the insured.

What is Critical Illness Insurance?

Essentially, critical illness insurance is a protection plan designed to offer financial assistance to individuals following a medical diagnosis of critical disorders. Under the plan, the insured avails of a lump sum amount following their diagnosis. The sum allows them to meet the cost of treatment, pre and post-hospitalization costs, and other support throughout the treatment. Notably, the list of critical diseases covered under such plans may vary depending on the plan and the insurance provider. Additionally, the coverage scope may vary based on the plan and the insurer.

Usually, critical disorders such as cancer, renal failure, and cardiac diseases are covered under critical illness insurance. The comprehensive coverage and prompt payout allow individuals to meet the cost of treatment and even help the family members tide over financial obligations with more ease.

What are Some Key Features of Critical Illness Insurance?

Critical illness coverage’s key features and benefits make them unique and valuable for individuals seeking insurance coverage against critical Illnesses.

Some of the key features include –

• A comprehensive insurance coverage

Critical illness covers are designed to safeguard the financial interest of the insured and their family in the event of being diagnosed with diseases like tumors, renal failure, cardiac complications, etc. The extensive range of diseases along with associated treatment charges offered under the plan makes this insurance plan useful for the patient and their family members. It does not just help them meet the cost of treatment with ease but also helps them avail timely medical assistance without being concerned about arranging funds.

• A Lump-sum payout

Insurance providers disburse a one-time lump sum payout to the insured to help them seek required medical treatment and meet the cost incurred during the same. However, such a payout is disbursed only if the individual has raised a claim for a critical illness diagnosis that is covered under the policy. Typically, the lump sum payout helps individuals meet the cost of treatment and substitute the loss of income during the treatment and recovery phase.

• Tax Reliefs on premium

Critical illness insurance holders are entitled to avail of tax rebates under the section 80D. They can claim a maximum of Rs. 15000 on their taxable income. However, if the insured is a senior citizen they can claim up to Rs. 20000 as a rebate on this life insurance.

What to Check Before You Purchase a Critical Illness Cover?

Individuals must check these features and benefits to ensure the critical illness cover they pick will be adequate to cover the medical expenses during an emergency and provide required support during the treatment.

Sum Assured:

The coverage of critical illness insurance is among the most important factors to consider today. This is because the cost of living is rising and so is the cost of healthcare. In this regard, individuals need to determine an adequate cover that could help them meet financial challenges and avail of medical treatment without worrying about the expense. Individuals must factor in the medical inflation rate, the cost of living, and their medical conditions to accurately estimate the coverage.

Premiums:

Critical illness insurance cover typically comes at affordable covers so that individuals can build a financial safety net the avail required medical assistance during emergencies. However, the extent of the premium amount depends on the volume of cover. In this regard, it is important to pick a premium amount and payment schedule that matches one’s payment capacity. Individuals may use an insurance calculator to understand whether the premium and coverage amount would be suitable for them or not.

Smooth claim process:

The purpose of getting a critical illness plan is to ensure that the required financial aid in times of need. This is why individuals must pick a plan that comes with a smooth claim process so that they can avail of financial support and get medical attention accordingly. A hassle-free process also ensures that the family members of the insured will be able to meet the income gap caused by the diagnosis and during the treatment.

Wide coverage:

A wide coverage ensures that the policy covers any critical illnesses and related expenses, offering peace of mind to the insured and their family members. This makes it important for individuals to check the list of Illnesses and expenses covered under critical illness insurance. Such an insight will help plan protection against unwarranted diagnoses and seek treatment accordingly.

Insurance Exclusions:

Just like coverage, it’s important to check the list of exclusions to understand the scope of the plan better. This will help them pick a plan that covers what they are looking for and will help them plan their protection plan accordingly. To begin with, they should check whether the exclusion list mentions the diseases they seek coverage for and also the terms related to pre-hospitalization costs benefits additional expenses.

Keeping these things in mind will help individuals pick a critical illness plan that matches their needs and help avail substantial financial support during an emergency. To further ensure effective pick, individuals must compare different plans and read policy quotes and documents more carefully to assess their scope and limitations.