In case you already have a medical insurance policy (either an individual or a family floater policy), then you may consider adding a CI rider in the existing plan or you may buy it separately.
Healthcare costs in India are on a rise. And when it comes to critical illnesses, which require intensive monitoring and comprehensive care, the cost of treatment may put a significant burden on the patient’s family. What makes things worse is that the occurrence of critical illnesses is also on a rise in India. As per Indian Council of Medical Research (ICMR), there are expected to be around 17.3 lakh new cases of cancer in India in 2020 with over 8.8 lakh deaths due to the disease. This is a rise from 14.5 lakh cases in 2016[1]. The cases of heart diseases are also rising in the country and its prevalence, along with stroke, has increased by over 50 per cent between 1990 and 2016[2].
While improvement in lifestyle can help reduce chances of these diseases, it’s imperative to have a plan in place to ensure that if the unfortunate event were to happen, you and your family are financially protected. This is where critical illness insurance policies come into picture.
What is a critical illness policy?
These plans provide coverage for life-threatening diseases which require specialized treatment that could even take a long period of time. If covered, the individual or the nominee would get the coverage amount in lump sum immediately after he or she is diagnosed with a critical illness. This amount can pay for costs not covered by traditional health insurance.
The first thing to note is that a critical illness cover is different from a regular health insurance plan. Under this, the health insurance company will pay the sum insured as a lumpsum amount in case one is diagnosed with any serious illness, say cancer or heart disease. That lump sum money will take care of the cost of medical expenses and you can even pay off loans that you may have taken. Also, unlike a health insurance plan where you get the claim based on your hospital bills, and that too subject to the restrictions and conditions of your medical policy, a critical illness plan pays you the entire sum insured irrespective of your medical expenses.
Who should consider buying a critical illness policy?
Those Who Have a Family History of Critical Illnesses: Often, the reason for critical illnesses is genetic. For instance, the risk of cancer is higher if you have a family history of the disease. As a proactive measure, you should get a critical illness cover to enjoy a secure future and avail the best possible treatment.
Those Who Are the Sole Breadwinner of the Family: If you are the only earning member in the family, it is imperative to secure the entire family with a critical illness insurance policy. It is required if you do not want your loved ones to go through the financial distress post-diagnosis of a critical illness. The insurance cover would take care of the treatment cost. Moreover, a critical illness policy can also compensate for your loss of income while you are not in a position to work due to your health condition.
What Critical Illnesses are Covered?
Most serious ailments like heart attack, cancer, stroke, kidney failure or paralysis are covered under any critical illness rider or policy. Each company has its own separate list of critical illnesses, which may or may not be similar. Hence, it is better to read the actual list of illnesses covered by a particular company. For example, the Critical Illness Insurance Policy by Bajaj Allianz General Insurance provides comprehensive cover for 10 critical illnesses including cancer, stroke, aorta graft surgery, coronary artery diseases requiring surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis with persisting symptoms, permanent paralysis of limbs and primary pulmonary arterial hypertension.
Critical Illness policy vs rider
Once you decide to protect yourself against any critical illness, you must choose between the options of a new standalone policy or you can also opt for a critical illness rider that comes with your regular health insurance plan or term life insurance plan. A rider will be available for a much-reduced cost and will carry similar benefits like a standalone policy. You need to be aware of the restrictions and flexibility that come with a rider in terms of increasing your sum assured. So, if affordability is not a restraint, then you should go for a standalone policy.
Where to Buy
While choosing the insurer, one must pay attention to the terms of the contract and additional benefits that are available. For instance, the Bajaj Allianz Critical Illness Insurance policy covers your entire family including children above the age of six years against 10 critical illnesses. It has varied sum insured options ranging from Rs 1 lakh to Rs 50 lakh. One also has the flexibility to increase the sum insured at the time of policy renewal and even evaluate premiums with their online health insurance premium calculator.
Another factor to consider is the claim settlement process which should be simple and hassle-free. So, it is always better to go with an insurer that has an in-house team for quick, smooth and easy claim settlement. Also, choose an insurer that allows you to switch from another insurer with all accrued benefits.
Source:
[1] http://nciindia.aiims.edu/en/cancer-statistics#:~:text=Indian%20Council%20of%20Medical%20Research,lakh%20new%20cases%20in%202020.
[2] https://www.thehindubusinessline.com/news/science/heart-disease-stroke-among-top-killers-in-india/article24935985.ece
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