Why a Critical Illness Insurance Plan is more important than you think

Life Insurance Plan

Any individual suffering from a critical illness will vouch for the fact that it affects the entire family, both financially and emotionally. It has devastating effects on the body of the patient along with huge medical bills which in turn affects the daily expenses of the family. Having a critical insurance plan at such a time is vital as it guarantees financial security for covering the medical bills as well as supporting the family.

A plan for critical illness is similar to a Mediclaim insurance plan however there are some places where it differs and it is important to understand this so as to eliminate any room for confusion. Under these plans you get a lump sum amount when the unfortunate news of a critical health problem finally comes.

Some of the common critical illness that are covered under the plan include heart attack, stroke, cancer, bypass surgery, kidney failure, major organ transplant and coma amongst others. They generally exclude medical conditions like birth control, dental treatment, hernia, gastric and cataract amongst others. Before investing in an insurance plan for critical illness, it is important to know what are the inclusions, exclusions and benefits of the plan.

Post the diagnosis of the disease, a thirty-day grace period is usually applicable and the compensation against the expense is dependent on the survival of the individual during this period.

People over the age of 45 years looking at availing the insurance have to go through a medical checkup.

Day care treatments and procedures like dialysis are covered in the plan.

The sum that is assured can be changed at the time of renewal as per the approval of the insurance company.

The assured amount is given to the individual usually one month after the diagnosis is done and can be used by the insured as desired.

There is option of getting cashless treatment done if the services of a network hospital are availed. All insurance companies have a network of hospitals under the policy and treatment at these come with their own set of benefits.

Usually pre-existing diseases are not covered under the plan however if premium is paid regularly for at least a period of four years then most insurance companies start covering the pre-existing disease as well.

There is coverage for all expenses related to pre-hospitalization for up to a period of 30 days.

There are a lot of tax benefits that can be availed under the section 80(D) of the Income Tax Act.

Old age is a very tough phase and a weak body only makes it worse because of the number of health related problems that come along with age. There are various insurance plans for critical illness that are specially customized for senior citizens and women and the various covers are given keeping in mind their unique needs. However, the disadvantage of this is that these plans can be slightly expensive however they prove to be extremely beneficial in the long run. Medical expenses are on a constant rise and something like a critical illness can drain your bank account to the last penny. It also has enormous strain on the entire family and it is always better to have something to look after the entire family than skipping it altogether.