Investment in critical life insurance cover - A worth health insurance

Are you planning to take a critical life insurance over or have already taken it and want to know if your investment is worth it? Read to know the illness or disease which different life insurance covers and opt for the cover that suits you best.

Critical illness cover is an insurance cover that provides benefits when you are diagnosed with critical illness.

Which illness and diseases does critical life insurance covers

It depends upon the type of cover that you are choosing; if you are choosing the basic vanilla type critical illness cover, it will safeguard you against heart attack, stroke and cancer. If you are using the cover with broad range of illness, then it may cover organ transplants, blindness, disability, paralysis, etc.

The time and the amount of cover can be chosen according to your income level. Here are some advantages of getting a critical illness cover.

Why you should invest in Critical life insurance

The best argument that one can put is I have a life insurance cover, then why do I need a critical illness cover. The reason is life insurance is paid at the death of policy holder. There The second argument raised is I also have mediclaim policy, so what's the need. Undoubtedly, mediclaim policy will cover all your medical reimbursements, but you need to first pay and then claim reimbursement. Also, expenses incurred during the time of organ transplant are not paid by are some insurance policies available in the market that provides critical illness as an additional rider to life insurance. But it has a waiting period of 6 months, while if you take a standalone policy, you will receive the amount within 3 months of this policy. Hence, critical illness cover is just what the doctor order treatment.

Moreover, your mediclaim policy will come into effect if you are hospitalized and it is advised that people who have a history of critical illness should take this cover. Moreover, it adds financial boost at the challenging times.
A word of caution- the amount is paid if you are able to survive for 30 days upon diagnosis of illness. Here are some more merits of critical illness cover

Tax deduction of Critical life insurance

Tax free payment- Critical insurance policy provides tax free Lumpsum amount upon the diagnosis of critical disease. You will get a deduction u/s 80 C and 80D of Income Tax Act, 1961.The deduction amount can be Rs 100,000 and Rs 15000, subject to terms and conditions as mentioned in the policy.
It provides financial assistance to your family- Having this cover this place will cover all your daily paraphernalia expenses and coupled with that some insurance cover provide you a protection against mortgage payments.
Peace of Mind- A critical illness cover provides you the tranquility of mind. Owing to a fact that not to worry about your financial problems will help you to recover in a better manner.
It covers wide range of diseases- Generally; it depends upon the life insurance company you choose. ICICI prudential aims to cover following disease in its Critical Life Insurance policy
Apallic Syndrome
Benign Brain Tumour
Brain Surgery
Chronic Lung Disease
Coronary Artery Bypass surgery
End stage liver disease
Heart Attack
Heart Valve Surgery
Kidney Failure, etc.

Critical illness cover with continuation advantage is also available that won't cease after a single Lumpsum payment. Not to forget, this policy is paid for 35 diseases or in the event of disability or death.

Long time coverage - Some critical illness insurance policy provides you cover for a long period of time, say 75 years.
Remember, critical illness cover is not a substitute for mediclaim policy. They are two different products offered by insurance companies.


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