Critical Health Insurance

What is a Critical Illness Insurance Policy?

A Critical Illness Insurance policy covers the insured against life-threatening critical diseases, such as cancer, heart attack, renal failure, stroke, etc. This critical illness policy provides a lump sum coverage amount to the insured on the first diagnosis of a listed critical illness that can be used to cover exorbitant treatment expenses. However, all critical illness insurance plans come with a waiting period of 90 days.

Benefits of Buying a Critical Illness Insurance Plan

Lump Sum Payment

The insurer provides a lump sum payment for the treatment of covered critical illnesses upon their first diagnosis.

Coverage Beyond Hospitalization

Regular mediclaim insurance plans cover critical diseases to the extent of hospitalization expenses only. They reimburse the expenses incurred on treating a critical illness during hospitalization. However, critical illness insurance plans provide a lump sum amount upon diagnosis of covered critical illnesses that can be used to pay for healthcare expenses with or without hospitalization.

Secures Financial Future

Patients diagnosed with a critical illness cannot earn as they used to due to the physical limitations of going to work every day. On top of that, there will be a huge burden of medical expenses incurred on the treatment of the disease. Buying a critical illness insurance policy is a foolproof way of securing the entire family’s future against critical illnesses, as the lump sum claim amount can be used not only to pay medical bills and day-to-day home expenses.

Rising Medical Inflation

With hospitals spending heavily on super-speciality equipment, the treatment is getting better day-by-day. Combined with medical inflation, it increases the cost of medical treatment, especially during hospitalization.
For example, According to the World Health Organisation (WHO), this is the tenth most common cause of death in the nation. Once diagnosed with cirrhosis, a transplant of your liver is the only treatment available failing which the patient can die within a couple of years.
Since its treatment requires nothing but a transplant, it is an expensive treatment and ranges between ₹10 – ₹20 lakhs. Moreover, finding the right donor is equally tricky. Also, post-transplant, there is a requirement of immunosuppressants which further increase the cost.
Considering these high treatment expenses, opting for a good critical illness insurance plan seems to be a viable option.

Need of the Hour

The need for a critical illness policy nowadays is more than ever. The sedentary lifestyle of the 21st century is giving rise to all kinds of illnesses, most of which are critical in nature. While the number of people developing/ contracting critical illness is increasing, the age at which people develop critical illnesses is consistently decreasing. This means that millennials are prone to developing critical illnesses as compared to the earlier generations. By buying a critical illness policy at an early age, young adults can safeguard themselves against the financial implications of these diseases while affording the best available treatment.

Who Should Buy a Critical Illness Insurance Policy?

Everyone can benefit from a critical illness policy. However, the following people must buy a critical illness insurance policy:

People with a History of Critical Illness in Their Family

Many critical illnesses are hereditary in nature, i.e., they run in families. A person is at a much higher risk of developing a critical illness if there is a family history of the same. Therefore, people with a history of critical illness in their family should definitely opt for a critical illness insurance policy.

Primary Breadwinners

The role and importance of the primary breadwinner of a family are paramount. If something happens to them, the family’s financial future will be severely affected. The family may even have to face unpleasant financial situations. That’s why earning members of a family must buy a critical illness insurance cover, especially if they have a medical history.

People with High-Pressure Jobs

Critical illnesses are highly correlated with high-pressure jobs. Various studies indicate that people working in high-pressure work environments are at increased risk of developing a critical illness due to high stress levels. Therefore, employees who have a job that puts high pressure on them should definitely opt for a critical illness policy.

People Over the Age of 40 Years

People over the age of 40 years are more susceptible to developing critical illnesses than those younger than them. Thus, it is advised that they buy a critical illness insurance policy in their 30s, if not early. Moreover, they are likely to be in a better financial position and can pay policy premium easily at that age.

Critical Illness Insurance Plans vs Health Insurance Plans

To know the difference between a health insurance policy and a critical illness insurance policy. Check out the key differences between a critical illness insurance plan and a health insurance plan as stated below:

Parameters	Critical Illness Insurance Plan	Health Insurance Plan
Meaning	It Covers life-threatening diseases like tumors, permanent paralysis, cancer, heart attack, etc.	It provides comprehensive health insurance coverage, Including hospitalization expenses
Benefits	Hospitalization is not required to avail policy benefits. Diagnosis is enough to get a lump sum payment.	The insured can get the reimbursement of incurred hospitalization expenses by submitting medical bill. He can also avail cashless facility at network hospitals.
Coverage	It offers coverage for up to 100 critical illnesses. Some plans also provide coverage for second medical opinions under there plans.	It offers extensive coverage, including pre-hospitalization expenses, post-hospitalization expenses. OPD treatments, day care procedures, modern treatments and ambulance charges
Waiting Period	A waiting period of 90 days applies to most critical illness insurance plans.	An initial waiting period of 30 days applies to all regular health insurance plans.

Featured Products