Important Features of Critical Illness Health Insurance Policies

Illness can occur to anybody at any time in their life. This can affect a person emotionally, physically, and financially as well. When someone is affected by critical diseases like cancer, heart attack, etc., one may have to pay a lump sum amount of money out of their pocket for diagnostic tests, doctor consultations, special tests and more, which can add up to pose a huge financial risk. Therefore, having a critical illness health insurance policy can safeguard one from financial burden during the time of an emergency due to life-threatening diseases.

A Critical Illness Insurance Policy often covers chronic diseases like cancer, kidney failure, paralysis, organ transplant, heart attack, renal failure, stroke, etc. This Critical Illness Policy provides a lump sum coverage amount that includes extraordinary medical expenses for those critical illnesses that are covered under the insurance policy. However, it is important to keep in mind that the list of covered illnesses varies from one plan to another and to check that the specific critical illness is covered under the policy.

Important features of critical health insurance:

  • Comprehensive coverage benefits: Critical Illness Health Insurance Policy generally covers 30+ chronic diseases like cancer, stroke, etc. Thus, when one is diagnosed with a life-threatening disease he / she can use the benefits provided by the health insurance cover which includes pre and post-hospitalization coverage, dialysis coverage, organ donor coverage, etc.
  • Avail lump sum amount: At the time of treatment, one can get a lump sum payment amount from the insurance company and avoid out-of-pocket payment.
  • Affordable premium: The critical illness coverage is comprehensive in nature, but the premium to be paid for this insurance policy is affordable and helps the person to avoid financial burden during health emergencies.
  • Hassle-free process: It is a simple procedure to get a critical health insurance policy and it requires minimal documents to be submitted. The company directly settles the bill with the hospital and makes the process hassle-free for the policyholder.
  • Monthly income replacement: If you are being diagnosed with a critical illness keep in mind that you can claim a part of the sum assured as a substitute for a monthly salary. This acts as a huge advantage during a time of financial burden and if there is loss of regular income due to sick leave or inability to work.
  • Tax benefits: Under section 80D under the Income Tax Act, 1961, the owner of this health insurance policy can enjoy a tax benefit of Rs.25000 if he pays the premiums regularly. If you or your parents are senior citizens then you can avail of tax deductions up to Rs.50,000 if regular premiums are being paid for the same.

Who should get critical health insurance coverage?

  • Family history with critical illness: You are at risk if your parent / family member is suffering from a chronic disease. Thus, you would be prudent to have critical illness health insurance.
  • Individuals above a specific age: If you fall under the specific age bracket (typically 40+ years), then you must have a critical health insurance cover as there is a higher risk of being diagnosed with a critical illness.
  • Individuals with high-risk occupations: Working in an environment with high-risk factors for your health, or working in a high-pressure work environment can also likely increase your risk for health issues, warranting a critical health cover.
  • Women: With increased incidence of cancer among women, it is prudent to check genetic risk factors and seek adequate coverage in case of future need.

Protect yourself from an unforeseen financial burden and choose a health insurance plan from Chola MS with critical health coverage that is suitable to your situation.

Disclaimer: This article is a paid publication and does not have journalistic / editorial involvement of Hindustan Times. Hindustan Times does not endorse / subscribe to the content (s) of the article / advertisement and / or view (s) expressed herein. Hindustan Times shall not in any manner, be responsible and / or liable in any manner whatsoever for all that is stated in the article and / or also with regard to the view (s), opinion (s), announcement (s), declaration (s), affirmation (s) etc., stated / featured in the same.

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