What Is Critical Illness Cover?
Published On Mar 03, 2021 12:00 AM By Shrida Gulati
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Most people think they are fully insured or covered under the life insurance policy but treating a serious medical condition can cost more than a life insurance policy and that’s where critical illness cover comes in handy. You may have noticed ‘Critical Illness Cover’ coming up every time you are looking for a life insurance policy.
In the event of a medical emergency such as heart attack, cancer treatment etc. critical illness can help you to have enough financial resources to complete these medical treatments. Read below to learn more about critical illness cover, it will help you understand whether you and family require it or not.
Also Read:- What are Riders in Life Insurance?
What is Critical Illness Cover in Life Insurance?
If the policyholder chooses to opt for critical illness cover, he/she opts for additional coverage that provides coverage against serious medical conditions such as heart attack, heart stroke, cancer etc. Critical illness covers those long-term medical conditions which cost a fortune for treatment. Some life insurance offers an option to opt for critical illness cover rider in exchange of additional premiums that helps the policyholder to pay for the hospital expenses and the treatment for the illness. Some life insurance has this option in-built in the policy itself.
The critical illness cover provides the policyholder a lump sum amount so that the policyholder can use the money for medical expenses for any of the critical illnesses listed in the life insurance policy. Critical illness can be opted as a rider or there are some critical illness cover life insurance plans also available in the market.
Features and Benefits of Critical Illness Cover
1. Cover from Long-Term Diseases
Critical Illness covers provides cover from 36 long-term diseases such as cancer, tumor, heart attack, kidney failure etc. Basically critical illness cover provides cover against the long-term diseases which have expensive treatment.
2. Lump Sum Payout
Under the critical illness cover the insurance company pays out a lump sum amount to the policyholder, which can be used by the policyholder for appropriate medical treatment for the critical illness he/she is suffering from.
3. Financial Protection
The policyholder can choose to opt for part lump sum payment and part regular income i.e. the insurance company provides some of the lump sum amount to the policyholder for the treatment expenses and remaining part of the lump sum can be provided as regular income.
4. Easy Claim Process
The claim process of critical illness cover is very easy and quick. The lump sum amount is paid out on the basis of the diagnosis report.
What is Not Covered Under Critical Illness Cover?
There are some things which are not covered under the critical illness cover they are also known as exclusion of critical illness cover. Following are the exclusion in critical illness cover:
- Critical illness diagnosed within the waiting period.
- Demise of the policyholder within 30 days of the diagnosis or treatment of the critical illness.
- Cosmetic Surgeries
- Critical illness that develops with overtime consumption of tobacco or alcohol.
- Medical treatment take outside India
- Any hormonal replacement treatments
- Any dental care treatments
You May Also Like To Read:- Reasons to Add Riders to You Life Insurance Policy
Why Life Insurance Riders Are Important For Me?
It is suggested that nowadays every person should have a critical illness cover because the number of unknown long-term diseases are rising and a study shows that millennials are getting more prone to these long-term diseases. Either way having a critical illness cover will keep you covered against the long-term diseases with expensive medical treatment. People who have a serious medical condition running through the family, people who are sole breadwinners of the family, people who are working in a very pressured environment and people who are above 40 years of age must have a critical illness cover.