5 Critical Illness FAQs Answered

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Purchasing a health insurance policy is an important part of financial planning. It provides the much-needed financial protection in case of a planned hospitalization or medical emergency. The insurance provider covers all hospitalization-related expenses,   thereby allowing you to focus on receiving quality treatment without having to worry about arranging finances.

You may select various add-ons while purchasing your health insurance plan. One such popular rider is a critical plan. Besides being available as a rider, a critical policy is also accessible as a standalone plan.

A critical illness plan, also known as dread disease policy, offers coverage against specified illnesses that are mentioned under the terms and conditions of the policy document. Upon diagnosis of any of the specified diseases, the insurance provider is liable to pay a lump sum amount to you.

It is imperative to have proper knowledge of various aspects of a critical illness health insurance policy before investing in one. You may dispel all myths and understand the policy features and benefits better by going through the following five questions and their answers.

  1. Which diseases are covered under a dread disease policy?

The list of diseases covered by a dread disease plan varies from policy to policy. The major diseases that are generally covered in a critical illness policy include cancer of a particular severity, heart attack of a specialized severity, stroke resulting in permanent medical problems, and major organ transplant or bone marrow transplant, among others. Some insurance providers offer variants that offer a higher coverage of illnesses at differential premium cost.

  1. Is it necessary to invest in a critical plan?

Though this depends on individual preference and requirements, you may consider purchasing a critical plan due to the numerous benefits it has to offer. The amount that you receive may be used by your family to fulfill their financial obligations. You may use the amount to continue living the lifestyle that you used to enjoy before the diagnosis of your illness. The amount also serves as an income replacement in case you are unable to work due to your illness.

  1. What is the process of making an insurance claim?

The process of making a critical illness claim is simple and hassle-free. Once you have been diagnosed with the particular illness, you may notify your insurance provider. The insurer may need further proof, such as diagnosis proof from a specialist in the particular illness, or tests that support the diagnosis. Once this has been verified, the insurer will provide the lump sum amount. The amount is generally sent within 30 days of making the claim.

  1. Is there a waiting period applicable to a critical plan?

Yes, a critical illness policy comes with a waiting period. Waiting period refers to the time after the purchase of the policy during which no benefits are paid. Once the waiting period is over, you may enjoy the benefits of your plan.

  1. Do critical plans offer tax benefit?

The good news is that you may purchase a health insurance with critical illness cover and reduce your tax liability considerably. The premiums payable may be claimed as tax benefit up to INR 15000 under Section 80D of the Income Tax Act, 1961. You may avail of a higher amount of up to INR 20000 in case you are a senior citizen.

To protect yourself and your loved ones upon diagnosis of a dreadful disease, you may invest in a critical illness plan. You may purchase such a plan by visiting your nearest branch or through the Internet. By doing so, you may enjoy financial security and peace of mind.