Medical emergencies might not come with a warning. Moreover, with advanced technology, medical costs are soaring. To manage your finances and have an adequate amount for medical treatment, health insurance would come to the rescue.
What is Health Insurance?
Health Insurance covers medical expenses like hospitalization costs, medication expenses, doctor consultation fees, etc., during illness.
Types of Health Insurance:
Health Insurance is majorly classified into two-
- Mediclaim
Mediclaim is the basic type of insurance. It covers hospitalization and treatment costs. Many insurance companies provide cashless compensation due to their tie-up with hospitals.
- Critical Illness Health Insurance
Critical illness insurance shelters lethal diseases like cancer, heart attack, renal failure, or that require prolonged treatment and lifestyle changes. The policy provides a lump sum coverage amount to cover the medical expenses incurred for the life-threatening illness under the insurance policy. The critical health insurance compensation covers the medical/ hospitalization charges and acts as a substitute income for the family until the patient can resume work.
Who Needs a Critical Illness Insurance?
The critical illness insurance policy is available for citizens above 18 years and less than 65. The policy could be purchased by those who have a medical history of certain health maladies or who want to be wise about expenditure on any health conditions. The primary breadwinner of the family who does not want the finances to be haphazard during the critical illness could invest in critical health insurance. It could prove to be beneficial to those who do not have adequate savings. Certain diseases covered by the policy include organ transplant, coronary bypass, cancer, paralysis, kidney failure, heart stroke, etc.
Benefits of Critical Illness Insurance
- Acts as Income Substitute- The economics of the family too is affected by the critical ailment of the earner. The lump-sum amount can be utilized for both health and household expenses.
- Covers the foreign Country- critical illness insurance covers the cost after the diagnosis of the ailment even in the foreign country. Therefore, you could go abroad for further treatment.
- Tax Benefits- The critical illness payout is tax-free under Section D of the Income Tax Act.
- There is a hassle-free settlement of claims with easy documentation while making them.
- The policy gives the option to buy additional riders to the plan.
- There is coverage for all pre-hospitalization charges up to 30 days.
- There are various options for premium, the sum assured, and tenure.
Conditions Of The Policy
- Critical Illness insurance requires pre-medical checkups for those over 45 years of age.
- A 30 day waiting period is a requisite post-diagnosis. The amount is paid to the insured during this period of survival.
- The sum assured can be changed during renewal at the consent of the insurer. The assured sum is paid a month after the diagnosis of the illness.
Hence, critical illness health insurance bestows benefits and helps to control finances during the deadly disease. However, it is also essential to look at the exclusions of the policy, which include AIDs, dental or cosmetic surgery, etc.
