Critical Illness Cover in Health Insurance - A Tool for Financial Protection

Any life-threatening critical condition which requires long-term medical treatment is termed a critical illness. The financial struggles that arise with medical bills for critical illness would be difficult to manage. For this reason, Critical Illness cover becomes crucial, as it provides the necessary financial help at times of need.

What is the difference between Regular Health Insurance and Critical Illness Health Insurance? Regular Health Insurance works on an indemnity basis, providing cover for treatment expenses, hospitalisation expenses, ambulance charges, etc. But Critical Illness Health Insurance, on the other hand, provides a lump sum if the policyholder is diagnosed with any of the Critical Illnesses mentioned in the policy document.

We all live in a fast-paced world, where a sedentary lifestyle, diet and unhealthy habits are making us vulnerable to non-communicable diseases. Life-threatening conditions like cancer, stroke, paraplegia, quadriplegia, decompensated liver disease, kidney diseases, etc., are on the rise.

A Medical Insurance policy may be sufficient to tackle the regular hospitalisation expenses. But will it be sufficient to cover the medical cost of critical illness? Treating critical illness requires long-term treatment and substantial financial expenditure. The lump sum provided by the Critical Illness cover can save you from being pushed into medical debt.

In this regard, Critical Illness coverage is essential for every individual. Across the Health Insurance firms, Critical Illness coverage is available under two options—it can be availed either as a standalone policy or as a rider. Both offer coverage against critical illnesses, yet they work on different principles. A standalone Critical Illness policy is designed to offer wide coverage for major critical illnesses that are listed in the policy clause. Whereas, a rider is an optional add-on cover which can be availed along with the existing Health Insurance policy by paying an additional premium.

Critical Illness Rider

The coverage of Critical Illness rider is policy specific. As the rider is purchased along with the base policy, it can be renewed with it, and no medical screening is required. Also, the premium paid towards the rider can be exempted from the Income Tax under Sections 80D of the Income Tax Act, 1961. However, the scope of coverage offered by the Critical Illness rider is limited when compared with the Critical Illness policy.

Critical Illness Insurance Policy

A Critical Illness policy is equipped to offer wide coverage against critical illnesses. The Sum Insured and coverage are flexible as it is a standalone policy. The claim process is the same as the regular Health Insurance policy. A notable difference between a rider and a standalone policy is the coverage for the number of critical illnesses. A Critical Illness rider covers limited critical illnesses whereas a standalone policy covers more than thirty critical illnesses. Like other Health Insurance policies, premium paid towards Critical Illness Insurance policies can also be exempted from the Income Tax under Section 80D of the Income Tax Act, 1961.

Star Health and Allied Insurance Co Ltd, as the pioneer in Health Insurance, is steadily addressing the needs of the hour through their innovative products. Star Critical Illness Multipay Insurance Policy is one among them. This unique policy provides cover against thirtyseven critical illnesses as per the terms and conditions of the policy.

Research findings make it evident that there is a steady rise in life-threatening critical illnesses. As the risk rate is high, anyone can be vulnerable to a critical illness. As an active measure, it is advisable to opt for Critical Illness coverage to be financially protected.