Why is it Important?You receive a lump sum of money which you can use to pay for loss of income as you are unable to work, or pay debts, or for expensive treatment. On the whole it can add to your health insurance policy.
A critical care illness cover is cheaper than an indemnity plan, for example a comprehensive insurance plan for a 30 year old individual with a sum assured of 5 lakhs will cost about Rs.6000 annually as compared to a critical illness plan which will cost Rs. 1,500 for the same.
"A comprehensive health plan covers a wide range of risks and is therefore significantly expensive than a critical illness plan that covers specific situations," says Arvind Laddha, chief executive officer and managing director, Vantage Insurance Brokers & Risk Advisor.
A combination of comprehensive health insurance and critical illness cover can give a good balance between pricing and coverage. "A Rs 5 lakh indemnity cover along with a Rs 10-15 lakh critical illness cover should be a decent mix," says Mukesh Kumar, head of strategic planning, HDFC ERGO.
Companies that Cover Critical Illness plans:
Each company has clauses which may vary from other companies, for example ICICI Prudential''s Crisis Cover protects against 35 illnesses, Bharti AXA''s Smart Health covers 20 while Aviva''s Health Secure pays for 12 ailments.
"One should evaluate and compare a few different plans to decide which suits one the best. Consider the list of illnesses covered, the cover amount, the claim procedure and the payment history of the insurer," says Suresh Sugathan, head, health administration team, Bajaj Allianz General Insurance.
Critical illness covers are fixed benefit plans. You get the entire sum insured irrespective of whether one is hospitalized or not and whatever the treatment expenses are. However, details vary from plan to plan.
The built-in coverage also differs from policy to policy. While some insure accidental death and partial or total disability due to accidents, some don''t.
A Comparison of some standalone Critical Illness Policies:
Points to consider before buying a Policy:"Age and medical history are important while deciding the appropriate sum insured," says Sanjay Datta, chief, underwriting and claims, ICICI Lombard General Insurance. The sum insured should be higher for the aged as they are more likely to develop chronic ailments.
Also take into account existing covers such as Mediclaim or personal accident and disability insurance policy. Along with this keep in mind the cost of treatment, and financial losses due to income loss.
Check for family history for cardiac or any major ailments and check if the policy covers those ailments.
You can buy a standalone critical illness policy or one with your existing health policy.
"The advantage of a standalone critical illness plan is that it is not compulsory to renew your health or life plan if you want to keep the critical illness cover. Riders are recommended as clubbing covers can facilitate easy management," says Gaurav Rajput, director, marketing, Aviva India.
Critical illness plans are sold both by life Insurance Companies and general Insurance Companies, the difference being that life Insurance Companies offer longer tenures. There are some special plans offered for women and senior citizens, Bajaj Allianz offers critical illness covers for breast cancer, ovarian cancer and cervical cancer.
Disadvantages:
Some companies give a lifelong renewability and some stop at 50 years.
According to the survival clause, the insured must survive for a minimum of 30 days after diagnosis. The waiting period refers to a period of 3 months after inception of the policy, though this can change from policy to policy.
Sometimes some insurers put a cap on the amount that can be claimed for certain illnesses. The claims record should be looked into before you buy a policy from the insurer. It is generally 30 days after diagnosis on submission of all the relevant documents.
No comments:
Post a Comment