Gaurav Sharma, 35, recently shifted to his new home along with his parents, wife and son. He thought, things will only be better from now. On consulting his doctor for his frequent headaches, Gaurav was diagnosed with Brain tumor. Since Gaurav’s tumor was detected in earlier stage, he could be treated… but his company though supportive, had to let him go after 6 months of paid leave… EMIs on his house were due and the hospital bills were rising….
Gaurav’s wife was brave through the entire ordeal; she consoled his parents and took care of the finances. She had to break several fixed deposits and Gaurav’s father gave away some part of his retirement money.
Gaurav had a medical insurance of 2 lakh but that the expenses of few months ran out the amount. Gaurav survived the tumor but his family faced financial hardships after that.
Gaurav would definitely be better off if he had taken a Critical Illness Plan.
Critical Illness cover is a plan which covers certain diseases like Stroke, Cancer, Heart attack which do not necessarily cause death but diminish the working capacity and which have extremely expensive treatments.
The Insurance Company hands over the entire amount of the cover to the insured at once, if he suffers from the listed diseases. After handling over the money, the policy expires.
The amount that you get is tax free. You would not have to pay anything to the government for it. Also the premium amount you pay is deducted from your taxes.
Critical illness insurance plan can be bought alone or as a rider on your health insurance. If you are buying it along with your Health insurance policy you could get the whole critical illness cover and the hospitalization charges can be covered with your health Insurance.
The premium is less at a younger age but increases as you grow old.
Most critical Illness plan generally cover 8-9 diseases which are Cancer, Stroke, Aorta graft surgery, Coronary artery bypass surgery, First heart attack, Kidney failure, Major organ transplant, Multiple sclerosis, Paralysis, Primary pulmonary arterial hypertension.
Health Insurance only covers hospitalization, for Critical Cover, hospitalization is not necessary, a diagnosis report from a consultant is enough.
The insurance company will not pay if the insured dies within 30 days of diagnosis of the critical illness.
The Insurance Company will also not pay for the Claim if Claim is made within 90 days of buying the policy.
The critical illness insurance plan will not offer coverage if the insured has been suffering from the specified illnesses at the time of purchasing the insurance policy or if care, treatment, or advice was recommended.
- Critical Illness cover insures against a fixed number of serious diseases.
- The insured receives the entire amount at once.
- It can be taken alone or along with the health insurance.
- Hospitalization is not necessary for Critical illness cover, diagnosis is enough.
- Insurance Company doesn’t pay if- the insured dies within 30 days of the diagnosis of the critical illness.
- Insurance Company doesn’t pay if- the claim is made 90 days of buying the policy.
Thus, Critical illness cover protects from the financial problems that would come with the illness giving relief at the times of distress.