Essential Things To Consider Before Buying A Critical Illness Policy


The cost of hospitalization, especially the charges of availing ICU services, is increasing rapidly. According to Mercer Marsh Benefits, healthcare costs registered a 10% increase on a per-person basis in 2018 even though the inflation stood at 5%. To be able to afford the latest medical and healthcare facilities, it is crucial to buy a critical illness policy along with the health insurance plan.

What is Critical Illness Policy?

Critical illness insurance is a lump sum coverage to meet the additional medical cost. The need for extra coverage stems from the fact that in case of critical illness, the existing health insurance coverage can get exhausted before the completion of the treatment.

Critical illness insurance is an additional or supplemental insurance over and above any existing health coverage. You are eligible for critical illness insurance if you are diagnosed with any such critical illness which is mentioned in your health insurance policy.

How critical illness policy helps?

Certain diseases and medical conditions like major cancers, high severity heart attacks, coronary artery surgery, stroke, kidney failure, Alzheimer’s, coma, paralysis, severe burns, HIV, and organ or bone marrow transplantation can be life endangering. The treatment for such grave illnesses can be difficult, expensive, and usually carried out over a long stretch of time.

This implies that the patient may require multiple visits to the hospital and additional expenditures.

Having critical illness insurance along with a health insurance policy allows you to recover without fretting over increasing medical expenses. You can use the lump sum amount that you would get under critical illness policy to bear treatment-related expenses like daily expenses, as your health insurance provider will take care of the hospital bills.

The Critical Illness Insurance Cover also offers tax benefits under Section 80D of the Income Tax Act. One can avail tax deductions of Rs. 25,000 – 50,000 for the premium paid depending on their age.

Points to note before buying a Critical Health Insurance Policy

With inflation affecting the cost of living as well as healthcare costs, health insurance coverage should be further strengthened by availing a Critical Health Insurance plan. However, here is what you should keep in mind before buying a critical illness policy.

Consider your family and dependents – The first thing to keep in mind before buying a Critical Illness Insurance Policy is the structure of your immediate family or other dependants. Along with that, you should also take into consideration your age and that of your family members.

The following are the factors that will help you determine the extent of health coverage you will need.

Your financial condition – The amount of critical illness cover you can avail depends on your financial stability. If your financial health is sound and sturdy, you can afford to buy a relatively smaller amount of critical coverage. But at the same time, it is extremely important to keep in mind that medical and healthcare costs are doubling every few years.

Your health condition – You and your family’s health condition determine whether buying a critical illness or a basic health insurance plan will benefit you. If you lead a hectic and stressful lifestyle, you are more at risk of a serious health issue. This raises your need to avail a critical illness plan.

Habits like regular smoking and drinking might raise your premium amount. However, it will save you from depleting all your savings, in case a medical emergency arises.

Your health insurance plan- Before you buy a critical illness policy, you must read all the terms and conditions of your medical insurance plan. Take special note of all those critical illnesses that are listed in the policy.

You can avail critical insurance coverage only if those critical illnesses that are listed in your health insurance policy.

Since buying separate health and critical illness covers can be an expensive proposition, Bajaj Finserv offers customized pocket insurance plans that can be used for your immediate and sudden needs. The category has a wide range of healthcare plans like Dengue Cover, Tuberculosis Cover, Monsoon Cover, Adventure Cover, and many more which have affordable premium rates and can be availed as and when required.

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