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Critical Illness Insurance Cover – Overview,Importance & Options


Critical Illness – As name indicates these are the life threatening illness and very limited options are available to cure such illnesses.

Please View – Six Critical Illnesses Those Needs To Be Covered

List Of critical illnesses in short – Six illnesses have stated in above link.Overall list can be stated as below

  1. Cancer.
  2. Bypass Surgery – Coronary Artery.
  3. Heart Attack.
  4. Chronic Kidney Failure.
  5. Major Organic Transplant.
  6. Multiple Sclerosis – illness related to Central Nervous system.
  7. Stroke
  8. Arota Graft Surgery.
  9. Irreversible paralysis.
  10. Artial Hypertension.
  11.  Heart valve replacement surgery.
  12. Motor neuron disease
  13. Permanent Paraplegia – Permanent loss of limbs due to accidents or injury to spinal cords.

These are only names of the illnesses. One should check how these illnesses are defined by the company.

Its Matter Of Luck – Critical insurance is all about matter of chance. Each and every person will not face critical illness situation but there are chances that out of 25 persons 1 person will face such illness and one can not predict in advance who will this unfortunate.

Three years back ,Mr.Sharma  make a deposit of Rs. 5 lakh which he think may be helpful in his daughters higher education.But in between he need to undergo major bypass surgery and drain away his fixed deposit and other saving.If he have already opted for critical illness cover then he may not need to spent his savings.

How Critical Illness Cover Works In general,term of critical illness cover is limited like 1 yr to 5 yrs and renewable after completion of the said period.If policy holder claim any listed critical illness cover,then company pays sum insured on first diagnosis and policy is closed. Please remember reimbursement is generally in lumpsum after first diagnosis only.There are very selected companies like Star Health Criticare Plus which provides double benefits of regular hospitalization and critical illness benefit but with higher premium rates only.

Premium Illustrations – These are mere examples not recommendations.Premiums are for age of 45 Yrs and sum assured of 3 lakh.

Policy Name Annual Premium
Bajaj Allianz Critical Illness 2400/-
ICICILombardCritical Care 2720/-
Star health Criticare Plus 6,618/-

Note – Above mentioned policies are NOT recommendations.Premium is different due to unique specifications of each policy.E.g Star Health Criticare Plus provides both critical illness and regular hospitalization.

General Exclusions –

  1. Claim arising within 90 days from policy commencement are generally not paid.
  2. Known / Unknown Pre-existing Critical  illness within stipulated period.
  3. Please check how critical illness is defined by insurance company.E.g. All types of cancers are not life threatening and one can check the list of excluded cancers from the representative of the company Or type of acute kidney failures are not considered for claim.
  4. Critical Illnesses caused to consumption of alcohol or drug abuse are not considered.
Critical Illness Riders with life insurance Plans -Number of insurance plans offer Critical illness riders with nominal annual premiums.But in case of most of the plans, policy get terminated when claim of critical insurance is paid and death benefit becomes void.Though this is not true for all but a number of insurance plans.

Bottomline –

Its important to have financial support in the time of crisis and such plans offers you support in such conditions without having break your savings.Its important to check the features of all plans online / offline and take decision based on the individual requirement.Its important to opt for critical illness cover,if it fits in your budget…isn’t it?

 


Category: Insurance

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Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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