Personal finance -http://www.fintotal.com Title : Critical Illness Cover
Tags: Mediclaim riders, Mediclaim, diseases covered under critical illness policy
Meta description: Critical Illness policy, its features, exclusions, riders
Snippet: A Mediclaim Policy only covers the cost of treating an illness – it does not compensate you in case your illness makes you unable to earn. For a set of about a dozen debilitating diseases (such as stroke, cancer, blindness, etc) you get a lump-sum payment on diagnosis. This payment has nothing to do with the costs you incur in treatment. Indeed, you can get this in addition to the regular Mediclaim that reimburses you the cost of treatment. Critical Illness Policy addresses the point made above – about getting some compensation for loss of income. Most Critical Illness Policies today have an upper limit of about Rs30 lakh of payout. We suggest that taking the maximum possible limit is a good policy to have, in addition to the ‘compulsory’ Mediclaim. Features Like the name itself carries only major illnesses are covered. Different companies may consider different diseases as critical but a critical illness policy commonly covers illnesses or conditions as Cancer, Coronary Artery Bypass Surgery, First Heart Attack (Myocardial Infarction), Kidney Failure (End-stage Renal Failure), Major Organ Transplant, Stroke, Paralysis, Heart Valve Surgery, Surgery for a disease of the Aorta and Multiple Sclerosis. Even if you were diagnosed with one of the diseases in their list, unless their registered doctor confirms that it is critical you may not be paid the benefits. Minimum entry age is 5 years but restricted to 20 years by some players while the maximum entry age is 55 years. However an existing policy can be renewed up to the attainment of 70 years of age. The age criterion for entry and renewal widely varies among various players. Sum insured of Rs 1 lakh to Rs 50 lakh can be chosen. The premiums rise with age and sum insured. A critical cover policy is a benefit policy unlike a reimbursement policy which means if you are diagnosed with any of those major illnesses you are eligible to receive the entire sum insured irrespective of the actual medical expenses incurred and even if you are not hospitalized! An unfortunate market practice seen occasionally is that of insurance agents advertising ‘No Medical Test Needed’ as if that were a big advantage for you in buying a policy. In fact medical examination is insisted upon by every medical insurance provider worth their name especially for those over 45 years of age. Nowadays, most medical tests are smooth 45 min processes that can be completed in the comfort of your own home. A doctor nominated by the Insurance Company visits you to take blood, urine and ECG tests, besides the routine blood pressure and weight / height measurements. You need to be in fasting to be ready for this test.
Exclusions Critical Illness Policies do not cover pre existing diseases and also critical illnesses that are contracted within 90 days of buying the policy. Similarly if death occurs within 30 days of being diagnosed the benefit is not payable. The company can deny benefits if any trace of HIV/AIDS is found or if the disease can be linked to pregnancy/childbirth or if the disease is resultant of pre existing mental or physical ailments. If treatment undergone is not scientifically recognized it will stand excluded. Similarly like in all other insurance policies if the disease is due to exposure to radioactivity or nuclear fuel/ nuclear waste if will not be covered. If the disease is in any way linked to war, invasion, and terrorist activity it will remain excluded. Like we mentioned above even with the diseases on their list benefit will be provided only if it meets only conditions laid down by them. For instance with cancers if it is benign or if it is not malignant it might be excluded. Useful Riders Accidental Death Cover This rider covers the insured’s life in case of death by accident. In case of death by accident the sum insured is paid out to the nominee. This is a useful one to have as top-up with either with Life Insurance or Health Insurance rather than as a separate insurance policy. Permanent Total Disability This rider insures against permanent total disablement due to loss of limbs and sight in an accident. Compensation is paid if they’re convinced that the insured is unable to gain employment in the future. Do I Need One? A Critical Cover supplements your Mediclaim. It shouldn’t be thought of as a substitute for it. If you don’t own a Mediclaim policy, get one soon. Mediclaim takes care of expenses related to hospitalization. If you have a family history of certain major diseases ascertain if those diseases are covered by some provider. When you make claim on your critical cover the policy expires. You would have to apply for a new one but you wouldn’t be covered this time for the disease you got the benefits. Buy Critical Illness policy separately and not as a rider with a Life Insurance policy which offer ridiculously small cover for critical illnesses for additional premiums almost making them worthless.
Breadcrum Product stage life insurance