Home Health Insurance What does the Critical Illness Policy mean and its features?

What does the Critical Illness Policy mean and its features?

Critical Illness

An insurance policy for Critical Illness protects the insured from fatal critical illnesses like cancer, heart attacks, renal failure, etc.

This critical illness policy offers a one-time payment.

amount of insurance coverage that would be sufficient to pay for expensive medical costs associated with severe illnesses covered by the policy.

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Features of Critical Illness Plans

These characteristics of critical illness insurance policies are listed below:

Up to 36 serious critical illnesses, including cancer, kidney failure, heart conditions, and tumors, are covered by the critical illness insurance program.

Lump-sum Payment: For the treatment of diseases that are covered by insurance, the insurer offers a lump sum payment.

Processing Claims Easily: Using the diagnosis report as a basis, the claim can be handled quickly.

After the waiting period has passed, coverage is typically given.

Income Loss: You may be able to use some of the lump sums to replace lost income.

Critical illness insurance benefits

Have you ever worried about what would happen to you and your family if a serious illness prevented you from working? How will you also pay for the medical expenses you have incurred?

Although we don’t want to terrify you, we do want you to be aware of the dire circumstances that a critical disease may bring.

The most effective method of safeguarding oneself against dangerous diseases and illnesses in the future is to purchase the best health insurance for critical illnesses. Following a diagnosis of any covered catastrophic illness, you will receive a lump sum payment.

Benefits of Critical Illness Insurance for Tax Purposes

According to the Income Tax Act of 1961, the policyholder is eligible for tax benefits. Section 80D of the Income Tax Act of 1961 allows for a tax exemption of up to Rs. 15,000. Under the same section, senior citizens are eligible for a tax credit of up to Rs. 20,000. * Tax benefits are subject to changes in tax regulations.

Health Insurance Plan vs. Critical Illness Insurance Plan

Neeraj was totally devastated when he learned that he had a brain tumor.

His health insurance policy, which had an amount assured of Rs. 10 lakh, covered the costs of the necessary medical treatments. Having said that, he was heartbroken when his company’s revenues began to decline. The severity of his condition prevented him from managing his firm. As a result, the business’s financial situation declined (along with his health).

Like Neeraj, many consumers are unaware of the distinction between health insurance and critical illness insurance.

Here are the distinctions between a health insurance plan and a critical illness insurance plan.

Critical illness insurance illnesses that are covered

Critical illness insurance policies often cover the following conditions:

to a certain stage of cancer

a heart attack (first time)

artery bypass grafting in the open heart

repair of heart valves or open heart surgery

the severity of your coma

regular dialysis is necessary for kidney failure


major organ transplant

Bone marrow transplant

permanent paralysis of limbs

A condition is known as motor neuron disease or amyotrophic lateral sclerosis (ALS)

Multiple Sclerosis

aplastic anemia

Meningitis caused by bacteria

Speech loss

hepatitis in its latter stages


a terminal lung condition

Hepatitis virus that is fulminant

severe burns

Dystrophy of the muscles

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Who Can Benefit From A Critical Illness Insurance Plan?

Anyone and everyone can benefit from purchasing a critical illness policy. The hurried lifestyle of today foretells lifestyle-related ailments, including serious conditions like cancer, heart attacks, strokes, etc.

Patients’ capacity to earn can be affected by a serious disease. It’s because the patient is frequently ill and confined to their home. In certain circumstances, the diminished ability to work results in an inability to work at all. A financial crisis is brought on as a result.

One can get a critical sickness policy to protect against such occurrences.

Who Should Purchase Critical Illness Coverage?

The quality of care is improving daily because of hospitals’ significant investments in super-specialty equipment. Due to this and medical inflation, the cost of therapy is increasing. Medical expenses incurred while a person is hospitalized might be extremely expensive.

It can be very expensive for female patients to use the breast cancer drug Herceptin. The patient can only be treated if at least 16 vials are available. The cost of a patient’s therapy may be something you already comprehend.

Choosing the finest critical illness plan seems like a sensible choice when you consider the costs of critical illness treatment.

The following individuals can all gain from a critical illness policy:

People with Families Critical illness in the past

Many fatal illnesses are passed down through families or are inherited. If there is a family history of the same condition, one is at a significantly higher chance of developing it. Those who have a family history of critical illness should absolutely get a critical illness insurance plan.

main providers of income

A family’s primary provider has a vital role and is of great importance. If something were to happen to them, it would have a significant influence on the family’s financial stability in the future. The family may possibly have challenging financial situations. Because of this, earning family members—especially those with a medical history—must purchase critical illness insurance coverage.

People with Stress-Inducing Jobs

Workplace stress and critical illnesses are strongly correlated. Studies show that those who work in high-stress environments are more likely to experience a severe illness. A critical illness policy is unquestionably a wise choice for those who work in high-pressure environments.

Those who are above 40 years old

Critical illnesses are more common in people over the age of 40. They should buy critical illness insurance coverage by the time they are in their late forties. Additionally, they are more likely to be in better financial standing and have no trouble paying the premium for the insurance.

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