The Importance of Critical Illness Cover in Health Insurance

Imagine a world where a major health setback doesn’t derail your financial security and well-being. That’s the promise of critical illness insurance. 

But before we delve into this powerful tool, let’s understand what a critical illness is and how it can impact your life.

What is a critical illness?

A critical illness is a severe medical condition that requires extensive treatment. Examples of critical illnesses include stroke, organ failure, heart attack, and cancer. 

The financial burden of treating such illnesses can be immense, putting a strain on your savings and disrupting your income. A critical illness cover in health insurance can help you navigate these challenges. 

Why is critical illness cover important?

Critical illness cover in health insurance is a financial cushion that pays you a lump sum benefit if you’re diagnosed with a covered critical illness. Although medical advancements mean we are living longer, critical illnesses can show up at any age. With insurance that covers a significant critical illness list, you can focus on recovery while your medical bills are paid. 

Key illnesses covered under critical illness plans

While the specifics may vary among insurers, the typical critical illness list in most policies includes:

1. Heart attack (Myocardial infarction) 
2. Coronary artery bypass surgery 
3. Stroke 
4. Cancer 
5. Kidney failure 
6. Major organ transplants 
7. Multiple sclerosis 
8. Paralysis 
9. Primary pulmonary arterial hypertension 
10. Heart valve replacement 

Exclusions: What is not covered by critical illness insurance

Pre-existing conditions, certain lifestyle choices, and illnesses diagnosed before the policy’s effective date might be excluded. Always read the policy document carefully to understand the exclusions.
For example, injuries caused by any of the following activities will exclude you from receiving the policy benefits:

• Participating in adventure sports
• Abuse of narcotic drugs and alcohol
• Committing an act of self-harm or destruction
• Being a part of any criminal activity

Features and benefits of health insurance covering critical illnesses

Critical illness insurance offers several features and benefits beyond the lump sum payout (a large payment to cover all your medical expenses):

• High coverage amount: Provides up to ₹50 lakhs to manage hefty medical expenses.
• Tax exemptions: Premiums qualify for tax deduction under Section 80D of the Income Tax Act. The deduction limit is ₹25,000 for you and your family (spouse + children). You can claim an additional ₹25,000 or ₹50,000 for your parents depending on their age.
• Comprehensive health cover: From hospitalisation to physiotherapy, it covers a range of expenses accompanying your treatment.
• Financial stability: The lump sum payout eases the financial burden during treatment.
• Income replacement: The cover substitutes for lost income, supporting your family financially if you are unable to work due to illness.
• Affordable protection: It empowers you to choose from various plans that fit your budget.
• Enhanced coverage: Complements your existing health insurance for extra protection.

Factors to consider when opting for critical illness cover in health insurance

Choose the right critical illness insurance plan by carefully considering the following:

• Coverage amount: This is the size of your financial safety net. Most insurance providers offer coverage from ₹ 2 to 50 lakhs depending on your age and type of illness. Understanding the terms will help you decide the most suitable coverage amount for your needs.
  
  For example, a younger person might choose a ₹10 lakh coverage amount, which would provide a lump sum to manage treatment costs without being too expensive monthly. An older person with a higher risk of critical illness might choose a ₹50 lakh coverage for a more substantial safety net.
  
• Premium: Consider a plan that fits your budget and medical history. For example, if you have a family history of critical illness, you might opt for a plan with a higher payout to cover potential medical costs. This would come with a higher premium.
  
• Coverage duration: Make sure the policy covers you long enough. Critical illnesses can strike at any age, so you want to be protected throughout your working years and retirement.
  
  Check the renewal terms for health insurance online to see how long the policy will last and how much the premiums might increase over time. Some plans may allow you to renew the policy until a certain age, while others may have guaranteed renewability for life, with increasing premiums as you age.

Key Takeaways

Health insurance plans in India protect you from financial drain during health emergencies. Safeguard your health and financial future by covering significant treatments in your plan’s critical illness list. Remember, peace of mind is a valuable asset, and critical illness insurance can be vital to your health security strategy. Simplify your health insurance process with PhonePe, ensuring you have the coverage you need when you need it most.