Critical Illness Policy

A diagnosis of a serious illness can throw your world upside down, especially if you do not have a financial safety net. Critical illness insurance can help you better manage finances in such cases. 

From cancer to heart disease, these provide coverage for medical expenses upon diagnosis. This helps keep your savings intact, enabling you to focus on recovery, not finances.

These plans cover medical costs of specific life-threatening diseases like heart attack or cancer. Apart from hospitalisation charges, it provides assistance for other costs. This includes fees for doctor visits, diagnostic tests, and more.

The sum insured is crucial as it is the maximum financial assistance you will receive from the insurer. Since this amount also influences the premium you will have to pay, it is important to choose the right amount. 

If the sum insured is high, the premium will be high too. Subsequently, if your coverage amount is too low, you may fall short on funds. Here are a few factors you should consider while choosing the coverage for your critical illness insurance plan:

• Age: If you are old, you should opt for high coverage as you may be more vulnerable to health issues

• Healthcare costs: If the medical costs in your area are high, choose a higher sum insured

• History: If there is a history of health conditions, you must assess its potential costs to determine the coverage amount

As per Section 80D of the Income Tax Act of 1961, you can enjoy tax benefits on premium payments for health insurance. The following rules will apply:

• You can claim a deduction of up to ₹25,000 if those insured are below 60 years of age

• The limit for a tax deduction for senior citizens is ₹50,000 on an annual basis

While both provide valuable protection, they differ in many respects. Check out the differences between critical illness plans and regular health insurance plans.

Critical illness plans offer coverage for specific health conditions. If you want a broader scope of coverage, consider other regular health insurance plans. Here are other insurance plans from leading insurers on Bajaj Markets:

Choosing the right plan for you is crucial to safeguard your finances from the added stress of treatment of a serious illness. The following are some critical illness insurance plans that you can opt for:

Before getting critical illness insurance plans, carefully evaluate the scope of its coverage. It covers only a limited number of major serious ailments. These include:

• Cancer

• Coronary artery bypass surgery 

• Cardiovascular diseases 

• Kidney failure 

• Major organ transplant

• Annual check-ups for these diseases

The following are some of the expenses that these policies do not cover:

• No compensation in case of the insured person’s death within 30 days of diagnosis

• Any critical disease developed due to smoking, tobacco, alcohol, or drug intake

• Any serious ailment due to an internal or external congenital disorder

• Pregnancy or childbirth-related critical conditions

• Critical injuries due to self-harm

Not everyone needs this type of policy. Consider getting a critical illness insurance policy if you fall under any of the categories.

• As people over 40 years are more vulnerable to such diseases, consider opting for this insurance plan

• Since many serious ailments have hereditary causes, get this plan if you have a family history

• You should opt for this insurance plan if you are the sole bread-earner of your family

If diagnosed with a serious ailment, you can file a claim easily. Make sure you file the claim within the insurer’s timeline for a seamless process. Here are the general steps to follow: 

1. Inform the insurer about the diagnosis 

2. Fill out the necessary claim form

3. Attach the relevant documents

4. Recheck all the details and submit your claim request

Once the insurer verifies and approves your request, the claim amount will be transferred to your account or sent via cheque. Note that the process can vary depending on the insurer, and you can contact the customer team in case of queries.