Critical illnesses are illnesses which might prove fatal and require intensive treatments. Such treatments are quite expensive and pose a burden on every common man’s finances. Critical illness health plans, therefore, prove quite useful. These plans help in meeting the high costs associated with critical illnesses. As such, the plans provide financial security. Let’s understand the concept and working of a critical illness health insurance plan.
Critical illness health plans are fixed benefit health insurance plans which cover a specified list of critical illnesses. Some common illnesses covered include cancer, stroke, heart attack, major organ transplants, liver failure, lung failure, multiple sclerosis, etc. If the policyholder is diagnosed with any of the covered critical illnesses during the term of the plan, the sum insured is paid in lump sum irrespective of the actual medical costs incurred.
There are some exclusions which are commonly found in almost all critical illness insurance plans. These exclusions are as follows:
Illnesses like cancer, heart related ailments, etc. are on the rise. Nowadays, many individuals are getting afflicted with common critical illnesses and are requiring intensive treatments. A critical illness plan, therefore, proves to be relevant.
Treatments required for critical illnesses are very expensive. Individuals, thus, need a specially designed plan which pays for such expensive treatments where a normal health insurance might prove to be insufficient.
Then best part about critical illness plans is that the benefit received can be used in any way. A lump sum amount of money is paid which you can use for availing advanced treatments or for any other financial liabilities which you have.
The premiums which are paid for a critical illness plan are allowed as a tax deduction under Section 80D. Thus, you can avail tax benefits too from a critical illness policy.
Critical illness plans can be used to supplement an existing health insurance plan in the event of facing any critical illness.
Given the important of critical illness plans, many health insurers offer a critical illness policy. However, when buying critical illness plans, you should be careful. A plan must be bought only after comparing it with other available plans. To compare, the following parameters should be used:
Look at the number of illnesses covered by the different plans. The higher the number of illnesses covered, the wider the scope and the better the plan.
Critical illness plans allow coverage up to specified levels. Look for these levels. Match your coverage requirement with the allowed coverage levels and choose a plan which offers the coverage amount you require.
The last parameter should be the premium rate of the plan. Critical illness plans have low premium rates. When comparing, compare the premium vis-à-vis the coverage offered.
Here are top 8 critical illness plans available in India:
|Apollo Munich Optima Vital|| |
|Religare Assure|| |
|Star Criticare Plus Insurance Policy|| |
|Cigna TTK Lifestyle Protection – Critical Care Insurance Plan|| |
|Bajaj Allianz Critical Illness Plan|| |
|HDFC Ergo Critical Illness Policy|| |
|Reliance Critical Illness Policy|| |
|Future Criticare Plan|| |
A critical illness plan should be bought only after comparison. Turtlemint allows this comparison in a simple manner. You can fill in your requirements and get a list of all available critical illness plans offered by all leading insurance companies. You can then compare the available plans and choose a plan which is the best critical illness insurance plan as per your requirements. You can also get assistance for any queries which you have and claims which occur in your critical illness policy. Thus, Turtlemint gives you a complete package of buying critical illness plans.
Yes, premiums paid for critical illness plans are allowed as a deduction under Section 80D. The limit is Rs.25, 000 which increases to Rs.50, 000 for senior citizens.
Yes, critical illness plans pay the claim irrespective of other health insurance claims which you might have received.
The claim received under a critical illness plan can be used for any financial purpose whether it is medical or personal in nature.
Survival period is that period which the insured should survive after being diagnosed with a critical illness to be eligible for getting a claim under the critical illness plan.
The duration of the survival period depends on the critical illness plan. It, usually, ranges from 30 days to 90 days.
Health Insurance Companies