Given the rise of critical illnesses and the high cost of its medical treatment, it is significant for customers to opt for critical illness (CI) plan over and above the health cover they have, say insurance experts. These plans not only give the insured a lump sum amount but also provide the much-needed financial back-up.
Under the critical illness plan, the total amount paid to the insured can be used to pay for the cost of treatment, recuperation expenses and even to pay off the debts if taken due to the disease.
Bharat Kalsi, chief financial officer, Bajaj Allianz Life Insurance describes critical illness policy as a benefit policy as the sum insured (SI) is paid as a lump sum at the very instance of diagnosis of the illness.
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"This amount can be used to manage miscellaneous expenses such as loss of income, leave without pay, minor hospitalisation bills, medicines etc. These definitely provide the much needed financial support and confidence to fight the disease and protect one’s family’s dreams, goals and financial aspirations,” explains Anil Kumar Singh, chief actuarial officer, Aditya Birla Sun Life Insurance.
On the other hand, in case of regular mediclaim policies, the benefit is capped only to the extent of expenses on hospitalisation subject to a maximum of sum insured (SI).
CI plans ensure that a family’s savings are not eroded in the cost of treatment when a critical illness strikes. Insurance companies these days offer several products in this space – be it comprehensive standalone covers or disease specific critical illness covers.
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"Few critical illness plans may also offer a family cover providing individual critical illness sum assured(s) for self, spouse and children, which means if one of the family member claims on diagnosis of a critical illness, the other family members can continue with their respective covers in the plan," explained Kalsi.
This ensures comprehensive coverage and financial security to the family.
Life insurance products also offer critical illness cover as a rider. A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy.
Choice of a critical illness cover, experts say, should be made only after evaluating self and family needs.
"One should also see how comprehensive the cover is, who all it covers in family, and not just limit to financial aspects of the policy," Kalsi added.
