Rising pollution levels, stress, sedentary lifestyles and unhealthy eating habits are some of the major reasons behind rising critical illness cases. These medical conditions require immediate healthcare and long-term management, causing a severe drain on the patient’s savings.
Thus, to cater to such costs, a critical illness insurance plan becomes absolutely essential. However, in India, merely 8% of the population has critical illness insurance. Keep reading this guide to understand why critical illness plans are a lifesaver and why you should consider purchasing one.
What is Critical Illness Insurance?
Critical illness insurance, also called catastrophic illness insurance, pays a lump sum when you are diagnosed with certain diseases that may lead to death. The specified diseases usually include cancer, heart attack, stroke, and kidney failure.
Here are some of the key features of critical illness insurance policies:
- This insurance plan is designed to assist with the expenses incurred related to recovery, such as treatment and rehabilitation.
- The benefits under the policy become active after a policyholder is diagnosed with one of the diseases pre-defined in the plan document.
- Critical illness insurance provides coverage as a standalone policy or as an add-on rider to an existing medical insurance plan.
- Once the policyholders receive the insured sum, they can use it for their treatment expenses without worrying about spending their hard-earned savings.
Reasons Why Critical Insurance is Considered a Lifesaver
Following are the reasons why people consider critical illness insurance a lifesaver during medical emergencies:
- Rising Medical Costs: Critical illness insurance fills the gap between general health insurance and the exorbitant cost of treatment, surgery, and hospitalization for life-threatening diseases.
- Substantial Coverage: Critical illness insurance provides a lump sum payment, thus keeping you financially stable during extended recovery periods.
- Helps Concentrate on Rehabilitation: The anxiety of fighting a serious disease is already too much. With critical illness insurance, the financial strain is eased, enabling policyholders to concentrate only on their well-being and rehabilitation.
- Adaptable Coverage: Critical illness insurance policies are adjustable, enabling individuals to opt for coverage of particular diseases or a broad selection, depending on their susceptibility and choice.
- Tax Benefits: The premiums of critical illness insurance plans are tax-deductible under Section 80D. People can claim tax benefits up to ₹25,000 within a financial year, while for senior citizens, this limit increases up to ₹50,000.
List of Diseases Covered in Critical Illness Insurance Plans
Mentioned below is the list of diseases covered under the critical illness insurance policies:
- Cardiac arrest
- Cancer
- Kidney failure
- Heart valve replacement due to body defects or abnormalities
- Aorta surgery is performed through laparotomy or thoracotomy.
- Stroke
- Major organ transplants, including heart, liver, kidney, lungs, or bone marrow.
- Fulminant viral hepatitis, which causes severe liver damage and can lead to liver failure.
- Primary pulmonary arterial hypertension
- Multiple sclerosis
- Paralysis resulting in complete and permanent loss of one or more limbs, known as paraplegia.
- Parkinson’s disease
- Total and permanent deafness
- Blindness
- Permanent loss of the ability to speak
- Coma
- Terminal illnesses
- Degenerative brain disorders, such as Alzheimer’s disease
- Third-degree burns or severe burns covering at least 20% of the body.
- Chronic liver disease
- Chronic lung disease
- Muscular dystrophy
- Major head injuries
- Encephalitis
- Poliomyelitis
- Benign brain tumours
- Critical stage of AIDS
- Craniotomy or brain surgery
- Bacterial meningitis (caused by inflammation of the brain membranes or spinal cord)
- Universal necrosis of the brain cortex, also known as Apallic syndrome.
- Various serious coronary heart diseases.
Exclusions on Critical Illness Insurance Plans
Some common exclusions in critical illness insurance policies are:
- Critical illness diagnosed within the waiting period is not covered.
- Diseases you were diagnosed with prior to purchasing the policy are excluded.
- Any claims made during the waiting period shall not be paid. A waiting period of 90 days for critical illnesses is common among most health plans.
- Injuries or illness caused by hazardous occupations or activities.
- In case the insured dies within the survival period, they will not be compensated. This time period usually ranges between 14 to 30 days from the date of critical illness diagnosis.
- Cosmetic surgery and dental procedures.
- Injuries or illnesses caused due to war, terrorism, or civil war.
- Injuries or suicide attempts caused by oneself.
- Injuries or accidents are caused while participating in adventure sports.
- Sexually transmitted diseases.
- Injuries or accidents during war operations in the Army, Navy, or Air Force.
- Medical problems due to smoking, alcoholism, or drug abuse.
- Infertility treatments.
- Foreign medical treatments.
Critical illness insurance offers crucial financial security if life-threatening illnesses strike, especially with rising healthcare costs. While different, a BMI calculator can aid long-term health by promoting a healthy weight, potentially lowering the risk of some critical illnesses. Both contribute to overall well-being.
Companies like Star Health offer flexible critical illness insurance policies tailored to individual needs, providing fiscal assurance in cases of emergencies arising from health uncertainties.
Explore the Star Critical Illness Multipay Insurance Policy now!
