What is critical illness insurance? Know in detail
With excessive pollution and sedentary lifestyle, we are at more risk of contaminating with chronic illnesses. According to reports, one in four Indians is at high risk of suffering from non-communicable disease prior to the age of 70. You can take all the preventive measures you can, but unexpected things can happen anytime. This is where a financial buffer like critical illness insurance would prove to be helpful.
What is a critical illness insurance plan?
A crucial health insurance policy covers you against life-threatening illness such as heart attack, cancer, renal failure etc. The coverage in this policy is provided in a lump sum when you are diagnosed with the concerned illness, which can be used for taking for medical expenses. It is a defined-benefit plan, wherein the pay-out is fixed. Contrary to medical insurance, you can take more than on critical illness insurance plan.
What Illnesses are Covered in critical illness insurance?
The critical illnesses covered by may differ based on the insurance provider. Typically insurance companies cover between 8 to 20 critical illnesses. Some of these illnesses include –
- Coronary artery bypass surgery
- Heart attack
- Aorta surgery
- Kidney failure
- Organ transplant
- Heart valve replacement
What Diseases are Excluded from this Policy?
- Pregnancy-related complications & illness
- Illness caused due to civil war, army operations or any terrorist activities
- Any form of cosmetic surgeries
- Dental care or surgery
- Infertility treatment
- Any treatment is done outside India
- Hormone replacement treatment
How Much is Covered?
If you end up suffering from any critical ailment, the medical expenses could add up to lakhs. And often people have to break their saving or borrow money from friends or relatives. Considering that you are suffering from critical illness, your earning potentials are likely to get affected.
When you take critical illness policy, the coverage depends on different factors such as age, medical inflation, type of illness, family history, your job etc. It is recommended that you take a minimum coverage of 15 lakhs to covers both treatment as well as rehabilitation costs.
What is the Waiting Period?
To claim coverage under this plan, you must survive for 30 days after the diagnosis of the illness. Moreover, there is a waiting period of 90 days at the beginning of the policy. The diagnosis within 90 days of the policy and death within 30 days post the diagnosis will not be covered under the critical illness insurance claim.
Buying an insurance policy for critical illness is an excellent way of safeguarding your future against chronic illness. The insurance will provide you with an adequate amount to meet the expenses associated with medical treatment, thereby relieving you from financial burden. Moreover, under the Income Tax Act 1961, you can also get tax benefits as well. Under the section 80D of this act, you are liable for tax exemption of INR 15,000. For a senior citizen, this exemption goes up to INR 20,000 under the section.