Boost Your Health Insurance with Critical Illness Coverage

Boost Your Health Insurance with Critical Illness Coverage

Critical illness plans provide a lump sum payout on diagnosis of specific life-threatening conditions like cancer, heart attack or kidney failure

Getting health insurance is crucial because costs of healthcare are rising at a rapid rate. Experts say that a family floater policy of Rs 15-20 lakh is adequate for someone living in Indian cities. 

However, as one grows old one is more susceptible to critical illnesses like cancer, heart attack, stroke, or organ failure, requiring intensive treatment. Such diseases may require a big amount of money for treatment which may not always require hospitalisation and thus may not be covered by insurance. 

Critical Illness Add-On Covers 

Hence, it is recommended to opt for a separate critical illness add-on cover such as cancer, along with one’s regular health insurance cover. “Critical illness plans provide a lump sum payout on diagnosis of specific life-threatening conditions like cancer, heart attack or kidney failure,” says Ajay Shah, Head, Distribution, Care Health Insurance. 

These plans may be required based on an individual’s specific healthcare needs because the cost of long – tailed treatment for such diseases can be extraordinarily high and the lump sum payout would be useful. 

Hence, prioritising coverage for these conditions as add-ons along with a regular health plan, gives the consumer the certainty to meet any unexpected medical condition. “If a consumer gets diagnosed with any terminal illness like cancer, a cancer specific cover will help the consumer with its diagnosis and treatment,” says Indraneel Chatterjee, Co-Founder and COO, RenewBuy, an insuretech firm. 

How These Covers Work 

For example, such a plan aims to provide financial assistance to the insured on a diagnosis of cancer. The one-time lump-sum payout upon confirmation of the disease is a major feature of such plans, which provide the policyholder an immediate financial cushion against the medical costs of hospitalisation, surgery, chemotherapy, and radiation.

Another key feature is the fact that all stages of cancer are covered. There is a payout, irrespective of whether early or advanced-stage cancer diagnosis has taken place; the amount depends on the severity of the condition. This means that the insured gets the much-needed financial aid when the need arises, regardless of the stage at which cancer is presently diagnosed.

More recently, an income benefit providing for a regular income for a fixed period for a few months following diagnosis has been included in some plans. This feature is especially helpful in those cases where the insured is unable to work during treatment. Further, should the insured develop cancer and his diagnosis is established, the premium waiver feature stands to provide the insured with the benefit of continued cover without any financial burden.