Health emergencies are unnoticeable. A sudden health threat might drain all your savings and assets. Unlike regular health problems, critical illnesses require immediate medical attention and pharmacological and/or mechanical support for the function of vital organs. Heart Attack, Stroke, Major Organ failure, Cancer, Multiple Sclerosis, etc., are some examples of life-threatening critical illnesses.
Critical illnesses or diseases will require prolonged hospitalisation and regular hospital visits, which might take a heavy toll on people’s finances. Questioning the need for a Critical Illness Health Insurance policy despite having a standard Health Insurance policy is quite common. Critical Illness Health Insurance plan and a standard Health Insurance policy work on the same indemnity principles yet differ in their benefits.
Most Health Insurance policies cover the hospitalisation expenses incurred for treating critical illnesses. But we lack to acknowledge that a standard health insurance policy only covers hospital expenses subject to the policy’s terms and conditions. Some Health Insurance policies have sub-limits on modern treatments. On the other hand, if a person is diagnosed and gets treated for a critical illness, the maximum coverage depends on the opted Sum Insured.
Whereas a Critical Illness Health Insurance policy entitles the insured to a lump sum on diagnosis of the listed critical illness or disease. Moreover, the premium paid towards Health Insurance policies, Critical Illness Health Insurance policies and critical illness rider or optional cover are exempted from the income tax under Section 80D of the Income Tax Act, 1961.
It is crucial to read the policy documents or clause to know the number of diseases or illnesses covered. Also, check the policy’s premium to ensure that you are financially prepared. A standalone Critical Illness Health Insurance policy often has a higher premium than a standard Health Insurance policy since the coverage risk is higher. Every policy document and clause has a detailed list of critical illnesses or diseases under the inclusion of the policy. The insured is entitled to a lump sum only if diagnosed with the list of critical illnesses or diseases mentioned in the policy clause.
The number of diseases covered under a Critical Illness Health Insurance policy differs from one insurer to another. So is the Sum Insured, waiting period, inclusions and exclusions of the policy. A critical Illness Health Insurance policy pays out only once. But some Critical Illness Health Insurance policies have categorised critical illness or diseases under groups and pay out a lump sum to each group.
One such policy is Star Critical Illness Multipay Insurance Policy offered by one of the leading standalone Health Insurers, Star Health And Allied Insurance Co Ltd. This specially crafted policy provides a lump sum for the diagnosis of thirty-seven critical illnesses. All the critical illnesses covered under the policy are grouped into four categories – Caner Cover, Heart Diseases Cover, Brain & Nervous System, Major Organ & Other Conditions. The unique feature of the policy is that the insured is entitled to a claim under each group.
Star Critical Illness Multipay Insurance Policy provides 100% of the Sum Insured as a lump sum on diagnosis of any listed major diseases. Moreover, the insured is eligible for one lump sum under each group, which means the insured is entitled to 400% of the Sum Insured.
Critical illness or disease coverage is offered as standalone Health Insurance, a rider, or as an optional cover. Depending on their needs and convenience, insured person with Individual Health Insurance or Family Health Insurance can choose between rider or standalone insurance. The same benefits, including the provision of a lump sum are available under both the standalone policy as well as rider cover. The only difference lies in the extent of coverage; a standalone Critical Illness policy covers more than thirty illnesses, besides a rider covers only a few.
Evaluate your needs and requirements before buying a Critical Illness Health Insurance policy. Medical expenses for treating critical illnesses are high and might drain your saving and assets. Invest wisely to lead a secure life.