4 Reasons To Buy THIS Illness Insurance

When illness strikes, this cover cushions the fall -- guarding health, finances, and the family's fragile future, says Bhaskar Nerurkar

Health emergencies can strike unexpectedly, and when they do, the emotional and financial impact apart from physical suffering can be overwhelming. This is especially true for serious, life-threatening illnesses that demand long-term treatment, multiple hospital visits, and extensive medical care.

That is where Critical Illness Insurance steps in. It is designed to ease the financial burden so one can focus on what matters most: recovery.

What is Critical Illness Insurance?

Critical illness insurance is a type of health insurance policy that provides coverage for critical illnesses or life-threatening diseases, such as cancer, heart attack, stroke, kidney failure, major organ transplant, paralysis, etc.

It provides a lump sum pay-out if you are diagnosed with a critical illness covered under your policy, irrespective of the actual cost of treatment. You can buy critical illness cover as a standalone policy or as a rider to your existing health insurance policy.

Unlike standard health insurance policies which is indemnity cover, critical illness insurance does not reimburse actual medical expenses but offers a fixed pay-out as a benefit cover on the first diagnosis of a covered critical illness. This amount can be used to pay for medical treatments and ongoing care, as well as compensate for loss of income, day-to-day household needs, children's education, loan repayment, etc.

Key Features And Must-Knows of Critical Illness Cover

Four Major Benefits of Critical Insurance Cover

1. Coverage for Major Illnesses: Critical illness plans cover a wide range of life-threatening diseases, including cancer, heart attacks, strokes, kidney failure, brain surgery, etc. The number of illnesses covered can vary from insurer to insurer, and some plans cover up to 100 critical illnesses.
2. Lump Sum Pay-out: Health insurance companies provide a lump sum benefit in case you are diagnosed with a listed critical illness for the first time. This amount can be used to pay for medical treatment and recovery expenses, reducing the financial burden during this health crisis.
3. Coverage Beyond Treatment Expenses: The lump sum pay-out received on the diagnosis of a critical illness can be used for expenses beyond medical treatment, including day-to-day expenses, loss of income, loan repayment, children's education, etc. This helps to ease the financial burden of everyday expenses while you are recovering.
4. Hassle-free Claim Process: Claiming a critical illness insurance policy is simple. Most insurance companies require only basic medical documents -- such as diagnosis reports and doctor’s prescription -- for verification and process the claim efficiently.

Four Must-Know Critical Clauses

1. Waiting Period: Most critical illness insurance plans have a waiting period of around 90 days, though it may range from 30 to 180 days depending on the insurer and plan chosen. You cannot file a claim if the critical illness is diagnosed during this period.
2. Survival Period: Critical illness plans usually have a survival period of up to 30 days. You can qualify for the benefit only if you survive this period after being diagnosed with a critical illness.
3. Single Claim Policy: A critical illness insurance policy allows you to file only one claim. Your insurer will pay the entire sum insured after your first claim, and the policy will terminate once the benefit is paid.
4. No Coverage for Pre-existing Diseases: Most critical illness insurance plans do not cover genetic conditions or pre-existing diseases (PEDs), unless specifically stated otherwise in the policy.

Critical Illness Insurance is not just a policy it is a long-term shield against the financial repercussions of serious diseases. With the growing medical costs and rising incidence of lifestyle-related conditions, this cover brings peace of mind when one needs it the most. Investing in it now could mean one less thing to worry about later.

Bhaskar Nerurkar is Head -- Health Administration Team, Bajaj Allianz General Insurance.