InvestorQ : Why should one take a critical illness plan?
Anushri Vasa made post

Why should one take a critical illness plan?

3 years ago

A critical illness insurance, otherwise known as critical illness cover, is an insurance product in which the insurance company makes a lump sum cash payment if the policyholder is diagnosed with one of the critical specified illnesses.

Some of the critical illnesses covered under this rider are: cancers of specified severities, heart attacks, aplastic anemia, muscular dystrophy, permanent paralysis of limbs, and kidney failure requiring regular dialysis. You can claim critical illness sum assured once you are diagnosed with any of the critical illnesses specified in the policy document.

A few advantages of purchasing the critical illness plan:

- The plan comes to your rescue when you are diagnosed with a critical illness and protects your savings, which would’ve been depleted at a very fast pace if you didn't have a critical illness plan.

- Most of the insurers also cover recuperation aid and other expenses which your basic insurance plan would not cover.

- A policyholder with a critical illness plan can avail tax benefits.

- Apart from covering your medical expenses, under the critical illness plan, the policyholder is eligible for regular free health check-ups.

- Exclusions of a critical illness rider includes:

- Diagnosis within the first 90 days from the date of policy inception.

- Demise of the insured member within 30 days from the date of diagnosis or surgery.

- Illnesses caused as a result of substance abuse, smoking, pregnancy, childbirth or congenital disorder.

- Illness caused due to HIV/AIDS infection.

- Infertility treatment, and dental or cosmetic surgery.

- Treatment received outside India.

The policy tenure of a critical illness rider can be anywhere between 10-15 years with annual renewability option.