A critical illness policy offers a fixed sum when you are diagnosed with a covered critical illness. You can choose to buy a critical illness policy as a stand-alone plan or add it as a rider to your regular health insurance policy.
Critical Illness (CI) acts as a valuable addition to your basic health cover if you are diagnosed with a critical illness. While you may use your individual or family health insurance to cover hospitalisation costs, you receive a lump sum amount from the critical illness cover to fund other essential expenses related to your illness . This amount can help manage lifestyle changes, lost income, or additional treatment costs.
Key Takeaways
|
An OTP has been sent to your mobile number
Sorry! No records Found
Thank You for submitting the response, will get back with you.
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
In this modern world of stress and sedentary lifestyle, critical illness can happen to anybody at any time. Additionally, when one is young and physically healthy, insurance premiums are cheaper since they are classified as low risk for critical illnesses like cancer and heart disease.
As one grows older, the health risks and as such, insurance premiums increase. If you wait till you are older to buy a critical illness policy, it may prove more expensive. This is particularly because there is a higher possibility of developing conditions like diabetes, high cholesterol and high blood pressure, which can lead to exclusions, denial of policies or higher premiums.
There are several kinds of insurance plans to opt for with regard to getting covered against Critical Illnesses. Many people have a life insurance plan and add the critical illness plan as a rider to the base policy. Some have a Stand Alone critical illness Plan. Some others may depend on a Hospitalization plan.
Stand-Alone CI plan: This plan offers a lump sum payout if the policyholder suffers a critical illness covered under the plan. Claiming the stand-alone plan does not typically impact other insurance policies you own. This plan alleviates financial burdens as it allows you to use the payout as you desire.
CI as a Rider on Term Life Plan: The rider allows the sum assured on the base plan, which was payable only on death, to be payable on both death and CI diagnosis. After you claim CI, your base plan may be terminated. Because of this, the rider plan is usually cheaper than a stand-alone plan. This term plan also helps you choose from multiple payout options to suit your needs.
Hospitalisation Plan: This plan covers both outpatient treatment and hospitalisation costs. However, it does not cover additional expenses such as household bills, daily expenses, payments for domestic help, or the cost of mobility aids. A critical illness plan provides a lump sum that can be used for these extra needs while you are recuperating and unable to work.
Must Read - Disability Insurance
You need to know the following details about critical illness plans:
Health Conditions Covered: Typically, ‘critical illness’ includes cover for illnesses, diseases, or medical conditions related to cancer, heart surgery, kidney failure, heart attack, organ transplantation, arterial hypertension, multiple sclerosis, stroke, coma, and total blindness. In short, insurers provide cover for conditions that require long-term monitoring and medication and may occur or reoccur indefinitely.
Differences from Regular Medical Insurance Plans: Unlike regular medical insurance, a critical illness plan does not require the patient to be hospitalised to claim cover. In contrast to a regular Mediclaim plan, the CI plan only requires that the policyholder is diagnosed with a covered critical illness to receive the benefit. Hence, cover under a CI plan is more restrictive, applying only to specified health conditions and not general medical expenses. Additionally, a CI plan is typically offered for a longer period of time, often more than a year, whereas a regular mediclaim policy is renewed annually.
While critical illness plans provide valuable cover, it is important to know what they usually do not include. Being aware of these exclusions helps you avoid claim rejections later.
Understanding these exclusions ensures that you know exactly when your policy will provide financial support.
A critical illness plan is not just another policy. It is a financial safety net that protects you and your loved ones from the unexpected burden of high medical expenses and income loss. Buying the right plan at the right age helps you secure comprehensive cover at an affordable cost, giving you peace of mind when you need it the most.
At Canara HSBC Life Insurance, we understand that your health needs are unique. Our critical illness solutions are designed to give you flexible cover options, easy claim processes, and trusted support through life’s uncertainties. We encourage you to take the time to compare plans, understand the benefits, and choose the cover that truly safeguards your future.
Plan wisely today so you can face tomorrow with confidence, and we are here to stand by you, every step of the way.
The total amount spent by Indian households on health and medical-related services in November 2022 was roughly ₹120 billion.
Choosing the right critical illness plan can make all the difference when it comes to securing your finances during a medical crisis. Here are some key factors to keep in mind before making your decision:
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
