Critical illness plans – What are they?
You must have heard about this quote – Health is Wealth and it seems that today’s generation have forgotten the importance of good health. With higher stress levels these days more and more diseases have arrived. In today’s stressful and hectic life a health insurance is a must.
What if a bread winner from the family is diagnosed with some serious illness? The financial condition of the whole family would worsen. Critical illness plans offer financial cover in such event.
The critical illness plan, offered by Life Insurance companies provides the policyholder with a lump sum amount on diagnoses of any critical illness covered by the policy thereby ensuring that the family has adequate funds to cope up with the medical expenses and get the best possible treatment. However an important point to note is that one gets fixed amount irrespective of the cost which is actually incurred. The amount is pre-decided at the time of buying policy.
If one doesn’t wishes to buy a new policy specially for critical illness s/he may opt for a rider. Many insurance companies also offer a rider which can also be attached to the main life insurance policy for critical illness. The rider is called “waiver of premium rider for critical illness”.
A critical illness plan should not be confused with mediclaim. Purpose of both the plans are different. A mediclaim policy has a wide scope by covering many ailments other than pre-existing diseases, maternity and dental treatment. The scope of a critical illness is much narrow as a standalone policy.
Do you have a critical illness plan or a mediclaim?