A Standalone Critical Illness Insurance Policy: A Must-Have for Every Household

Life can take a turn for the most catastrophic events and burden anyone mentally, physically, and, most of all, financially. Having health insurance is a must in given times. It ensures financial security for you and your dear ones in case of any medical emergency.

 

However, it so often happens that standard health insurance might not cover certain aspects, for example, a big medical emergency. Well, critical illness insurance plans cover that for you. If you are trying to figure out what exactly is insurance for critical illness, you have come to just the right place.

 

This blog will serve as a guide to critical care insurance and why it is a must-have for every household.

 

What is Critical Illness Insurance?

Critical illness policy ensures additional coverage for medical emergencies which are more serious and incur a higher financial burden.

The diseases that are included in critical illness insurance are

 

• Heart attack
• Strokes
• Cancer
• Organ transplant
• Kidney failure
• Coronary artery bypass surgery
• Paralysis
• Coma

 

There are many more illnesses that may be covered under the same and differ according to the policy you opt for.

 

What are its Benefits?

There are many benefits of critical illness insurance that make it crucial in every individual's life.

 

• Coverage of Large Financial Burdens - While a standard health insurance policy does offer good coverage of expenses, a critical illness plan aids in covering the larger expenses that might befall an individual during a crisis.
• Tax Exemption - When an individual pays a premium under critical illness insurance, then that qualifies for a tax exemption under Section 80D of the Income Tax Act.
• Trouble-free Claim Process - You can request a payout soon after the diagnosis. Hospitalisation is not a prerequisite to claiming the benefits.
• Covers medical and non-medical expenses - By providing coverage for medical and non-medical expenses, your dependents are financially secure as well.
• Easily Accessible - With advancing technology, you can purchase and claim the benefits of insurance for severe illnesses online without any hassle.

 

Who Needs it the Most?

Critical illness health plan is important for everyone. But there are certain individuals and families who are in dire need of it.

 

• Breadwinners - Having a critical illness plan is highly beneficial for the sole earners in the family. This secures the future of the dependents.
• History of having a Critical Illness - If you happen to have a family history of some serious illnesses, like cancer, heart-related disorders and more, then it’s a wise option to avail insurance.
• Senior Citizens or People of the Age Above 40 - As you age, your body naturally becomes more prone to developing critical illnesses. In order to avoid a financial crisis and unnecessary burden, it’s better to already have a critical or severe illness policy that secures your future.

 

What are the Differences Between Critical Illness Policy and Standard Health Insurance?

After discussing the basics of a critical illness policy, let’s discuss how critical or severe illness insurance is different from a standard health policy.

 

Criteria	Critical Illness Insurance	Standard Health Insurance
Payout Structure	It is fixed, and it doesn’t get affected by the expenses that the policyholder incurs.	The amount is paid to cover the expenses of the treatment and is also subject to the insured amount.
Renewability	It is renewed annually. Once the payout is done, it is terminated.	It is also renewed annually. However, it does not get terminated immediately after the claim is settled.
Waiting period	Varies from one insurance company to the other and is usually up to 90 days.	Varies from one insurance company to the other and is usually 30 days.
Family	Only covers one individual.	Provides coverage for individuals or families depending on the plan you opt for.
Need	People above the age of 40 and the ones who have existing critical illnesses.	Everybody needs standard healthcare insurance irrespective of age and health status.
Pre-Existing Illnesses	No coverage is provided.	Coverage is provided. The duration for the same varies from one insurance company to the other.
Entire Coverage	It covers just a few critical illnesses.	It covers many different illnesses.

 

This was a guide in a nutshell to standalone critical illness health insurance plans in India and why it is a must-have for every household. While a health plan is like a bare minimum necessity for leading a peaceful life ahead, opting for critical healthcare insurance is a wise decision and a double security for the future.

 

Niva Bupa offers one of the best critical illness plans in India. Here are a few salient features of Niva Bupa plans:

 

• Coverage of over 20 critical illnesses
• Expense coverage of up to 2 crore
• Extensive coverage
• Long-term discount available