In today's fast-paced life, where constant work stress is the norm, along with changing lifestyle (i.e. unhealthy eating habits, sleeping habits and lack of exercise), individuals have become overly susceptible to non-communicable illnesses and diseases of varied kinds.
The recent COVID-19 pandemic has been an eye-opener and proved that health is indeed wealth. The COVID-19 pandemic also made people realise that illnesses do not come with a warning and how important it is to be financially prepared for the same with adequate insurance coverage.
While a comprehensive health insurance policy offers coverage for hospitalization along with day care treatment, pre/post hospitalization and health checkups, Critical Illness Insurance (CII) pays a lump sum amount in the event of claim triggered due to covered perils under the policy. Such CII plans offer coverage for listed critical illness/surgeries which are diagnosed during the policy period. CII plans are to be considered as supplementary and hardship cover.
For instance, if a person suffers from sudden paralysis, the CII policy ensures that the beneficiary receives the lump sum amount upon completion of the waiting period as well as survival period. The amount thus obtained can be used by the beneficiary the way the beneficiary wants. It can be utilized for paying medical expenses, planning future treatment or taking care of financial liabilities if any (e.g. children education, home/vehicle loans etc.)
It is pertinent to mention that CII plans often have a survival period (except in case of accidents) wherein the customer has to survive specified duration upon the diagnosis of suffering from the listed critical illnesses. Survival period usually ranges between 7 to 30 days and varies from product to product. However, certain insurance companies offer a 0-day survival period as well.
Family health history and critical illness insurance
One of the significant factors that is taken into consideration while opting for health insurance is the medical history of the individual and their family. Genetic predisposition for non-communicable diseases is something that cannot be ignored by an individual. It is prudent that such individual’s with strong familial predisposition should consider insuring themselves for serious critical illnesses by way of CII plans.
CI for cancer
Cancer is one of the most dreadful diseases. However, in lieu of technological and diagnostic advancement in the field of medicine, two important factors are early cancer detection and longer treatment duration. Conventional CI plans offer coverage for specified severity of cancer and early stages of cancer (e.g. carcinoma-in-situ) are excluded.
Premium and tax benefits
In India, depending on the insurer, CII could provide a wide range of coverage. CII plans also qualify under income tax benefit to the insured, as per the Income Tax Act.
Diabetes and CII
Availing a critical illness cover before the onset of diabetes is quite essential for those who have a family history of this condition. Diabetes is not considered a life-threatening illness by itself though it leads to fatal complications and can impact multiple organs (e.g. eyes, kidney etc).
Critical cover during a crucial period
Health emergencies do not come with a warning. Even if an individual does not have a family history or genetic predisposition for terminal illnesses or other fatal medical conditions, there is a chance they might get affected. Here, availing a critical illness cover takes away the financial stress, allowing families to focus on treatment, recovery and other financial liabilities.
The onset of the COVID-19 pandemic has reinforced the many financial perils unexpected medical emergencies can bring upon families. Opting for a suitable critical illness insurance package is a fool-proof investment for peace of mind while rebuilding life after a debilitating ailment.
Mr. Parag Ved, President and Head, Tata AIG General Insurance
