Changing lifestyles, such as irregular sleep patterns, unhealthy eating habits, smoking, and alcohol consumption, are the primary causes of people’s deteriorating health. This concern is driving up the demand for medical insurance plans across the country. Insurers offer a variety of insurance policies to protect you during medical emergencies. Critical disease insurance is one such plan.
This article will discuss everything you need to know about critical illness insurance plans.
What is a Critical Illness Insurance Plan?
Changing lifestyles can sometimes lead to life-threatening diseases, and such diseases are not covered under regular medical insurance plans. The best health insurance company offers specialised insurance policies that cover life-threatening medical conditions, known as a critical illness policy. In such policies, insurers offer you a lump-sum amount that can be used to cover your medical bills, travel expenses for treatment, donor expenses, or any other purpose.
What is Covered Under Critical Illness Insurance Policies?
When you purchase a critical illness health insurance policy, you will be protected against the following life-threatening diseases.
- Cancer
- Acute coronary syndrome
- Systemic illness (such as renal failure)
- Cardiovascular revascularisation
- Multiple sclerosis
- Major organ transplant
- Open chest CABG
- Aorta graft surgery
- Stroke
- Severe heart attack
- Total blindness
What is Not Covered Under Critical Illness Insurance Policies?
Listed below are some of the conditions or situations that are not covered by critical illness medical insurance plans. If you fall into one of the following categories, you are responsible for your own expenses:
- Minor health conditions
- Self-inflicted injuries
- Cancers with poor prognosis or a modest growth rate
- Illnesses or injuries from working in hazardous activities or jobs
- Birth defects or illnesses
- A diagnosis made abroad, unless endorsed by an Indian physician
- Diseases diagnosed before the start of the policy
- Medical procedures or treatments performed by an unlicensed medical practitioner
Need for Critical Diseases Insurance Policy
A critical illness plan protects you against certain critical diseases, some of which are mentioned above. The best health insurance company pays you a lump-sum amount that can be used to cover medical bills, travel expenses, or any other purpose. It offers you the flexibility to tailor the coverage amount according to your specific needs and preferences.
Additionally, knowing that you are covered for such life-threatening diseases reduces your stress and anxiety, which is essential during the recovery process.
Does Critical Disease Insurance Offer Any Tax Benefits?
Did you know that an insurance policy with critical coverage can offer you tax benefits along with financial security? Let’s explore how:
Deductions on Premiums: First, let’s understand what a premium is.
- A premium is an amount you pay to your insurer in exchange for the health insurance policy. You can pay premiums in three instalments such as monthly, quarterly, or annually. According to Section 80D of the Income Tax Act, you are eligible to claim deductions for the premiums you pay for critical illness policies
- Deduction on Health Insurance Plans: If you are under 60 years of age and purchase a family insurance policy that covers you and the entire family, you can claim a deduction of up to ₹25,000. Moreover, if you purchase the policy for your parents who are above 60 years of age, you can claim an additional amount of ₹25,000. Senior citizens purchasing a plan for themselves can claim up to ₹50,000 under Section 80D of the Income Tax Act of 1961.
NOTE: Tax deductions differ depending on the insurer, plan, and age.
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Wrapping Up
Life is unpredictable. Anything can happen to anyone. Medical insurance plans serve as a safety net in such cases. It is a small investment that can protect you from future high medical expenses. While your regular health insurance policy may provide a variety of benefits, keep in mind that it will not cover any life-threatening diseases like heart attacks or cancer. Additionally, medical treatments for such conditions are often expensive and can place a significant financial burden on you if faced alone. Investing in specialised insurance, such as a critical illness policy, will help you cover your medical expenses and provide financial security.