Critical illness insurance is a specific type of health insurance policy designed to provide protection against severe and life-threatening illnesses such as cancer, disability, or amputation. Unlike other health insurance plans, critical illness insurance pays out a lump sum to the insured individual upon diagnosis of a covered condition.
This lump sum can be used to cover various medical expenses associated with fighting and recovering from a critical illness.
This blog aims to guide you through some of the best critical illness insurance plans available in India, helping you make an informed decision based on your specific needs. Read on to explore the options and find a plan that suits you.
What is Critical Illness Policy?
A Critical Illness Insurance policy is designed to offer financial protection to the insured in the face of life-threatening diseases like cancer, heart attack, renal failure, and more. The policy provides a lump sum coverage amount, offering a financial cushion to manage the substantial medical expenses associated with critical illnesses.
In the unfortunate event of being diagnosed with a covered critical illness, the policyholder receives a lump sum payout. This amount can be used at the discretion of the insured, whether to cover medical bills, ongoing treatment costs, replace lost income during recovery, or address any other financial needs that may arise.
Unlike traditional health insurance, critical illness policies do not always require hospitalization to trigger the benefits. The diagnosis of a covered critical illness is often sufficient to initiate the payout process. The policy serves as a crucial financial safety net, providing peace of mind and allowing individuals to focus on their recovery without the added stress of financial strain.
It’s important to carefully review the policy terms, including the list of covered critical illnesses, survival period requirements, and any specific conditions outlined in the policy. Understanding these details ensures that the policyholder is well-informed and can make the most of the financial support offered by the Critical Illness Insurance.
What’s The Difference Between Health Insurance & Critical Illness Insurance?
- Health Insurance:
- Purpose: Health insurance primarily covers the cost of medical treatment and hospitalization expenses for various illnesses, injuries, and routine medical procedures.
- Coverage: It provides financial protection for a wide range of medical conditions, including both minor and major ailments.
- Payment: Health insurance policies typically offer reimbursement for medical expenses incurred during hospitalization or outpatient treatments. The payment is made directly to the healthcare provider or as a reimbursement to the policyholder.
- Scope: Health insurance is comprehensive, addressing various healthcare needs, from preventive care to major surgeries.
- Critical Illness Insurance:
- Purpose: Critical illness insurance is designed to provide a lump-sum payout if the policyholder is diagnosed with a specified life-threatening illness or condition covered by the policy.
- Coverage: It offers a more focused coverage, specifically targeting critical illnesses like cancer, heart attack, stroke, and other severe medical conditions mentioned in the policy.
- Payment: Instead of reimbursing medical bills, critical illness insurance pays a lump sum directly to the policyholder upon the diagnosis of a covered critical illness. This lump sum can be used at the policyholder’s discretion, such as covering medical expenses, lifestyle changes, or financial obligations.
- Scope: Critical illness insurance is narrow in scope but provides substantial financial support during a critical health event.
Best Critical Illness Insurance Companies in India 2023
| Policy Name Care Health Insurance’s Critical Illness Insurance policy | Features Coverage: Up to ₹6 crore Claim Settlement Ratio: 95.2% Minimum Premium Amount: ₹10,000 – ₹15,000/ year approximately |
| Aditya Birla Critical Illness Plans | Coverage: for 20 major illness Claim settlement ratio: 89.05% |
| Bajaj Allianz Critical Illness Insurance | Coverage: Up to ₹2 crore Claim Settlement Ratio: 92.24% Minimum Premium Amount: ₹257/month |
| SBI General Insurance – Critical Illness Health Insurance | Coverage: ₹3 lakh to ₹10 lakh Claim Settlement Ratio: 99.75% Minimum Premium Amount: ₹588/month |
| Care Health Assure Insurance Policy | Coverage: Up to ₹6 crore Claim Settlement Ratio: 95.2% Minimum Premium Amount: ₹10,000 – ₹15,000/ year approximately |
| New India Floater Mediclaim Policy |
1. Care Health Insurance’s Critical Illness Insurance policy
Care Health Insurance’s Critical Illness Insurance policy stands out as a comprehensive and reliable option for coverage against life-threatening illnesses. Here are some key features and services provided by this policy:
- Coverage for 32 Illnesses: The policy offers protection against a wide range of critical illnesses, providing a comprehensive safety net for policyholders.
- Claim Settlement Ratio: With an impressive claim settlement ratio of 95.2%, Care Health Insurance demonstrates a strong commitment to settling claims efficiently and providing support to policyholders in times of need.
- Cashless Claim Facility: The policy ensures a hassle-free experience for policyholders by offering a cashless claim facility at a vast network of healthcare providers, totaling over 16,500. This feature enhances accessibility to quality medical care without the immediate financial burden.
- Comprehensive Coverage: The policy covers various aspects, including pre and post-hospitalization expenses, psychiatric counseling, organ donation, and dialysis. This comprehensive coverage ensures that policyholders receive support not only during critical illness but also throughout the recovery process.
- High Coverage Limit: With coverage extending up to ₹6 crore, the policy provides a substantial financial buffer to address the significant expenses associated with the treatment of critical illnesses.
- Affordable Premiums: The policy offers a competitive premium structure, making it accessible to a wide range of individuals. The minimum premium amount is approximately ₹10,000 to ₹15,000 per year, enhancing the affordability of critical illness coverage.
2. Aditya Birla Critical Illness Plans:
Aditya Birla Activ Secure Critical Illness Policy:
1. Plan Variants:
- Available in two variants: Plan 1 and Plan 2
- Plan 1 covers 20 major illnesses
- Plan 2 covers 50 critical illnesses (includes the 20 illnesses from Plan 1)
- Plan 3 covers 64 life-threatening illnesses (includes the 50 illnesses from Plan 2)
2. Sum Insured Options:
- The sum insured can go up to ₹1 Crore for enhanced protection
3. Additional Benefits:
- Wellness coach benefit for faster recovery
- Option to choose a policy sum based on the annual gross income (up to 12 times)
- Coverage benefits even after claiming for one critical illness in the comprehensive plan
- Add-on cover for a second medical opinion
4. Other Details:
- Network Hospitals: 8200
- Incurred Claim Ratio: 89.05%
- Renewability: Lifelong
- Claims Settled: 63,000+
3. Bajaj Allianz Critical Illness Insurance:
Bajaj Allianz Critical Illness Insurance is designed to provide financial protection in the face of life-threatening illnesses. Here are the key features:
1. Multiple Sum Insured:
- For individuals aged 6 to 60 years: Sum insured options from Rs 1 lakh to Rs 50 lakh.
- For individuals aged 61 to 65 years: Sum insured options from Rs 1 lakh to Rs 5 lakh.
2. 100% Payout:
- Once diagnosed with a serious illness, you are eligible for a 100% payout.
3. Flexibility:
- You can increase your sum insured at the time of policy renewal to take advantage of lower premiums.
This critical illness insurance plan from Bajaj Allianz aims to provide comprehensive coverage for major health issues, offering financial support during challenging times.
4. SBI General Insurance – Critical Illness Health Insurance:
SBI General Insurance offers a critical illness insurance plan with several benefits. Here are the features and services:
1. Coverage:
- Covers 13 critical illnesses, providing financial support in challenging health situations.
2. Entry Age:
- Available for individuals aged 18 to 65 years.
3. Sum Insured:
- Options ranging from Rs. 2 lakh to Rs. 50 lakh, allowing you to choose the coverage that suits your needs.
4. Plan Duration:
- Two plan options: 1 year and 3 years, providing flexibility in policy duration.
5. Waiting Period:
- 15 days waiting period, ensuring quick coverage.
6. Coverage Range:
- Offers coverage from ₹3 lakh to ₹10 lakh, allowing customization based on individual requirements.
7. Claim Settlement Ratio:
- Impressive claim settlement ratio of 99.75%, indicating reliability in claims processing.
8. Minimum Premium Amount:
- Affordable premiums starting from ₹588 per month, making it accessible to a wide range of individuals.
SBI General Insurance’s Critical Illness Health Insurance plan aims to provide comprehensive coverage for specified critical illnesses, offering financial security during medical emergencies.
5. Care Health Assure Insurance Policy:
Care Health Assure Insurance Policy offered by Care Health provides coverage for critical illnesses. Here are the key features:
1. 32 Critical Illnesses Cover:
- The policy covers the treatment expenses for 32 specified critical illnesses, ensuring comprehensive protection.
2. Waiting Period:
- A waiting period of 90 days is applicable, ensuring coverage after a specified duration.
3. Comprehensive Coverage:
- The policy provides a wide range of coverage, including:
- In-patient hospitalization: Coverage for hospital stays due to critical illnesses.
- Pre- and Post-Hospitalization: Expenses related to the period before and after hospitalization are covered.
- Annual Health Check-ups: Regular health check-ups are included to monitor and detect potential health issues.
- Organ Donor Coverage: Expenses related to organ donation for medical treatment are covered.
- OPD Coverage: Outpatient department expenses are included, providing a holistic approach to health coverage.
Care Health Assure Insurance Policy aims to offer a comprehensive solution to individuals and families, ensuring financial support during challenging times of critical illness.
6. New India Floater Mediclaim Policy:
The New India Floater Mediclaim Policy provides coverage for critical illnesses along with additional benefits. Here are the key details:
1. Critical Illness Coverage:
- The policy covers various critical illnesses, including but not limited to:
- Cancer
- Open chest CABG (Coronary Artery Bypass Graft)
- Heart attack of listed severity
- Coma
- Paralysis of limbs (permanent)
- Open Heart replacement
- Major organ/bone marrow transplant
- Kidney failure leading to dialysis
- Stroke
- Motor neurone disease
- Multiple sclerosis
2. Extra Benefit for Critical Illness:
- In case an insured person is diagnosed with a critical illness during the policy term, the insurer provides an extra benefit of 10% of the sum insured, in addition to the admissible claim. This ensures additional financial support during challenging health situations.
3. Hospitalization Requirement:
- The coverage benefits are applicable for hospitalization exceeding 24 hours.
The New India Floater Mediclaim Policy aims to provide comprehensive health coverage, including support for critical illnesses, offering financial protection and peace of mind to the insured and their family.
Conclusion
Life-threatening diseases bring not only emotional but also financial stress to individuals and their families. In these critical moments, the last thing anyone should worry about is the burden of mounting medical bills. Fortunately, investing in the best critical illness insurance policy provides a crucial safety net.
It allows individuals to focus solely on receiving necessary medical treatments without the constant worry about the associated costs.
