Critical Illness Mediclaim – Part 2

TAX BENEFITS:

SECTION 80D DEDUCTIONS

• SELF AND FAMILY: RS. 25000/-
• SELF, FAMILY AND PARENTS: RS. 55000/-
• SELF, FAMILY AND SENIOR CITIZEN PARENTS: RS. 60000/-
• SELF (SENIOR CITIZEN), FAMILY AND SENIOR CITIZEN PARENTS: 65000/-

How much Critical Illness Mediclaim You should take?

It is very much important to know how much Critical Illness Mediclaim we need. One benchmark is to multiply your annual income by 3

The other benchmark is adding up your monthly expenses such as rental or mortgage payments, car installments, food, transportation, groceries, medication and home care. Multiply this by the number of years you expect to be laid up due to a serious illness.

How to choose best Critical Illness Mediclaim?

Special Plan: Apart from taking Critical Illness Mediclaim for Self you can also opt for special plan which provide specific critical illness plans for senior citizens and women. This will help you to reduce the expense burden if any senior member of your family is critical and also, they are more prone to.

Renewability and Age: While most Critical Illness Mediclaim plans comes with lifelong renewability, there are insurance company that put a limit to it. So, it would be important to consider the renewability factor as well as the eligibility age to ensure that you are covered if you are alive for a longer period.

What are the Inclusions in Critical Illness Mediclaim? 

• Renewal benefit
• Cover for up to 34 critical illnesses
• Lump sum payment in a single transaction
• Cover for critical illnesses for a policy tenure of 1 year
• Option to add Permanent Paralysis of Limbs and Permanent Blindness

What are the Exclusions in Critical Illness Mediclaim?

• Dependent diseases
• Pre-existing condition
• Any injury arising due to a suicide attempt
• Any illness directly or indirectly caused by nuclear weapons
• No claim is payable if the insured smokes 64 or more cigarettes in a day.

Waiting Period: Waiting Period” means the benefits under the Policy shall be payable only if the Insured is first diagnosed as suffering from a defined Critical Illness after 90 days of the commencement of the Policy Period, and the Insured has not previously been Insured continuously and without interruption under the Critical Illness Mediclaim.

Illnesses and Diseases Covered: The number of critical illnesses covered by insurance company may vary. Most insurers cover 20 to 30 major critical illnesses or even more. Some of these are cancer, bypass surgery, heart attack, stroke, kidney failure, major organ transplant and paralysis. 

Things to be considered: 

• Claim Process
• Selecting the right insurance amount
• Sub Limits
• Don’t hide your health information
• Don’t hide your family health history
• Check the policy papers once you get it
• Communicate to Your Family

By this time, you would have got an idea that how different insurance policies are immensely helpful at different stages of life. So, you must always ensure that you should be properly insured  – not to be under insured or over insured.

We learnt about Critical Illness Mediclaim in which cancer is also covered. However, there is a major difference between Critical Illness Mediclaim and Cancer Insurance Policy. So, let us see a comparison chart and move on to our next Module Cancer Insurance Policy.