Getting diagnosed with a life-threatening disease is heart wrenching. It means stepping away from the usual routine to dealing with hospital appointments. Seeing your hard-earned money being drained to keep up with the cost of treatment takes a mental and physical toll on you and your loved ones from the added financial burden. Critical illness insurance will help lift the monetary load from your pocket in such uncertain and challenging times.

What is Critical Illness Insurance?

In simple words, critical illness insurance covers severe and deadly illnesses such as heart attack, cancer, neurological disorders, major organ transplant, etc.

The insurance company pays a fixed lump-sum amount to the policyholder if he/she gets diagnosed with a critical illness included in the policy. Generally, this amount is predefined at the time of purchasing the insurance.

One should be aware that, usually, any pre-existing conditions are not covered in critical illness insurance. Some insurance companies may include them after you complete four years with them. The insured is also required to survive a minimum number of days after the date of diagnosis of critical ailment for claiming the benefit of cover. A period of 30 days is the general survival period. It may vary depending upon the insurance company.

What is the Need for Critical Illness Insurance?

The modern era comes with a sedentary lifestyle that is taking a toll on our health tremendously. A study suggests that more people are rapidly becoming prone to acute health problems. This means that the number of people getting sick from acute diseases is increasing, whereas the age at which they get sick is reducing, so younger generations are susceptible to such life-altering disorders in this age.

Therefore, everyone should consider investing in a critical illness policy as early as they can. Because lifestyle diseases don’t give a warning before they strike, critical illnesses impact your health and your earning capacity. With exorbitant treatment costs, not being able to work properly puts further pressure on your finances. Hospitalization is not necessary for critical insurance, and hence, it completely safeguards you financially.

Difference Between Health Insurance and Critical Illness Insurance

As mentioned above, acute illnesses not only cost a bomb but also reduce your earnings drastically. Standard health insurance provides coverage for hospitalization costs, but critical illness insurance provides a lump-sum amount at the time of diagnosis. Here are a few differences between both:

1. Coverage: Health insurance provides complete coverage, which includes hospitalization costs. Critical Illness insurance offers coverage for severe diseases included in the policy.

2. Benefits: In standard insurance, you can claim reimbursement of hospitalization expenses or get cashless treatment in a network hospital. Only diagnosis is enough to claim a lump sum pay-out in a critical illness policy.

3. Waiting Period: A period of 30 days is standard in health insurance, whereas the waiting period depends on the illness diagnosed in critical illness insurance.

General Inclusions and Exclusions in Critical Illness Policy

Usually, inclusions and exclusions depend on the type of policy you take. For instance, a policy focused on heart diseases may exclude cancer. The following are the general inclusions and exclusions:

• Illnesses Included: Cardiovascular Diseases, Cancer, Coma, Stroke, Kidney failure, Organ Transplant, Paralysis, Multiple Sclerosis, Motor Neuron Disease, Major Burns, Deafness, Severe Liver Diseases, Muscular Dystrophy, Aplastic Anemia, etc.

• Illnesses Excluded: HIV AIDS, Diseases Resulting from Drug Abuse; Critical Pregnancy Conditions; Dental Treatment, Cosmetic Surgery, Hormone Replacement, Infertility, Illnesses resulting from war or terrorism, Congenital Disorder; Any treatment taken outside India; Death before completion of survival period.

This is just an indicative list and by not any means restricts itself to this.

Who Can All Benefit from a Critical Illness Insurance?

Everyone will benefit from having a critical illness insurance plan as it safeguards from the uncertainties of life. Also, with expensive medical equipment, the medical cost is getting higher day by day. But if you fall in the categories given below, you should immediately start looking for a critical illness policy.

• Family History of Critical Illnesses: A lot of acute illnesses are hereditary. A person is more susceptible to a critical condition that has a family history. So one should check for any such genetic diseases existent in the family and immediately opt for a plan.

• Extremely Stressful Jobs: A study suggests that people with high-stress jobs are more prone to developing critical lifestyle ailments. Thus, if you have a highly demanding and pressurizing job, secure yourself right now through a critical illness policy.

• Sole Provider:  If your family’s finances depend entirely on you, then you must buy a critical illness plan. A sole provider is the financial backbone of the family. Unfortunately, if something happens to them, the family might face financial repercussions.

In conclusion, a critical illness plan provides a holistic solution in the event of getting a life-threatening disease. One should also consider the age factor and purchase a policy once they are in their late thirties. So, health insurance coupled with a critical illness insurance plan works best.

Have you or a loved one used critical illness insurance?

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