If you are healthy today, there is no guarantee that you can sustain your healthiness for life long. When your family is depend on your income, your healthiness and job is more important for the family’s happiness and you must be prepared for the nightmare that would cause or affect your family’s happiness.
In India, the survey shows that the rapid growth in the major diseases like heart attack, diabetics, blood pressure, etc. due to the work culture. This also forces us to think about the protection for our income when there is serious health problem for you that affects the day job. This article explains about the critical illness policy and what is the benefit of taking the policy. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.
What is Critical Illness policy?
You can not envisage your future and it is always good idea to prepared for the any misfortune happen to you. The one of the prominent factor that affects your income is suffering from the critical illness, permanent disability or the unexpected demise of you. This all will put your family on cross roads and nobody to take care of their expenses (please note that if your family is very rich and have more savings then this would not be suitable for you).
In the above cases, one has to take the protection measures for his family if he can not get any future income or losses his job. It would happen only when you are suffering from the deadly diseases. It is your responsibility to insure you from the unexpected illness or death. You need a Critical Illness policy to protect you from any of the mentioned deadly diseases. If you are suffering from illness and quit the job due to that, insurance company would pay you the compensation.
Difference between Critical Illness policy and Rider
The Critical Illness policy will come under the health insurance policies. It is a standalone policy and will not be added to any other existing policy. This policy premium will be paid specific to this policy.
Where as critical illness rider will come with the term insurance policy. If you know about the term insurance, it is the pure insurance for protecting for your life. While you survive, there may be misfortune like disability or critical illness. It overcome those unexpected situations, you must take the critical illness rider on top of the term insurance policy. There will be some extra premium associated with the rider which will be paid along with term insurance premium.
Critical Illness policy is taken for one year and it needs to be renewed every year. You can come out of the policy at any time. But, rider can be taken at the time of starting the term insurance. Once you come out of the rider, there is no option to add the rider to the policy.
How it is different from health insurance?
It is the common doubt for everyone to confuse with the critical illness policy and the health insurance. The intention of health insurance is to provide hospitalization expenses at the time of medical treatments. This would also include the critical illness like heart attack, cancer,etc. Where as critical illness policy pays you the lump sum amount regardless of the expenses occurred.
Where to take the Critical Illness policy?
- This policy can be taken from the general insurers or life insurance company.
- Life insurance companies provide this with the two options: Adding rider to the life insurance or the stand alone policy.
- Normally taking from the general insurance company would have short term, we have to renew every year.
- Prefer taking the stand alone policy from the general insurance company, it will have the wide coverage.
What is not included?
- It doesn’t cover the pre-existing diseases and no claim can be made during the first 60-90 days of the policy.
- The insured has to survive 30 days after the treatment.
- Hospitalization expenses may not be claimed.
Tax Benefits
- You can show the premium paid for this policy under the Section 80D of the income tax act.
- The maximum limit is Rs.15000 (Rs.20000 for the senior citizens)
Summary
The above section has detailed out on the critical illness policy. If you are salaried and your family is dependent on your income, you must spend time on reviewing your protection plans and give the importance for critical illness policy. If you have not already taken one, please don’t delay and take the corrective action. It is for your family’s happiness!! If you have any doubts, please post it in the comments section.
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August 3, 2011
Health Insurance