How to choose the best critical illness insurance in India

Critical illnesses are major medical complications that require intense treatments and treatments that incur a considerable amount of money. Though you might have a health insurance plan for meeting your hospitalization costs, a critical illness policy can come in handy to afford advanced medical treatments.

A critical illness insurance plan is a health insurance policy that covers a list of critical illnesses like heart attacks, stroke, paralysis, major organ transplant, etc.

If, during the policy tenure, the insured starts suffering from any of the covered illnesses, the plan pays the sum insured in a lump sum. You can use this benefit to pay for your medical expenses or to take care of other financial liabilities that you might have.

Critical illness insurance plans can be a useful addition to your financial portfolio. Here are some reasons why –

• They give you a lump sum benefit if you are diagnosed with any covered illness.
• You can use the benefit for any financial needs that you might have.
• The benefit paid is irrespective of any other health insurance benefit that you might have received.
• The premium that you pay for the policy qualifies for a deduction under Section 80D of the Income Tax Act, 1961. The deduction limit is Rs.25,000 if you are below 60 years of age, else Rs.50,000.

Given the importance of critical illness plans and their usefulness, both life and general insurance companies offer such plans. How do you choose the best policy from the multiple options available? The answer is through comparison. You should compare the available plans on different parameters and then pick the best. To compare, here are the parameters that you should consider –

• The number of illnesses covered:
  The first parameter to judge a critical illness plan is to check the list of illnesses covered. The more, the merrier. Plans that cover the maximum number of critical illnesses offer the widest possible coverage. Moreover, check the types of illnesses covered. The more exhaustive the list, the better would be the coverage.
  So, the best policy will be the one that covers the maximum possible illnesses without restrictions.


• The survival period clause:
  Under most critical illness plans, there’s a survival period clause. This clause states that you have to survive a specified number of days after the diagnosis of the illness to become eligible for the claim. For instance, say the plan has a survival period of 60 days. This means that post-diagnosis of the illness, you should survive for a minimum of 60 days to be able to make a claim under the plan.
  Different critical illness plans have different survival periods. Look for a plan that has the lowest period so that you get to make claim at the earliest.


• The waiting period:
  Critical illness plans have a waiting period during which any illness suffered is not covered. The waiting period starts from the date of buying the policy and continues for the specified period.
  The waiting period restricts coverage in the initial years of the policy. As such, it is better to opt for a plan that has the lowest waiting period so that you get covered at the earliest.


• Coverage exclusions:
  Though critical illness plans are simple plans that pay the benefit if you suffer from the covered illness, there are certain exclusions that the plans have. Claims are not paid for such excluded instances. So, check the exclusion list of different plans. Choose a policy that has minimal exclusions, as exclusions restrict coverage.


• Ease of claim process:
  The claim process under most critical illness plans is similar. However, some insurers simplify the process through digital means and prompt responses. So, check the claim process of different insurers. Choose an insurer that offers the easiest, tech-enabled claim process so that you get the payout easily when you need it the most.


• The premium charged:
  Lastly, the premium charged by the critical illness plan is important as it is an expense for you. So, comparing the premiums is the most rudimentary thing to do. However, when you compare the premiums, look at the coverage too. Plans that cover limited illnesses have lower premiums than plans that cover an exhaustive list. So, compare the premiums vis-à-vis the illnesses covered to choose a plan that offers the most comprehensive scope of protection at the most competitive rate of premium.

Critical illness plans prove to be a boon in complicated medical emergencies which require intensive and advanced treatments. They can supplement existing health insurance coverage for wider protection and also earn you additional tax benefits².
So, compare the available critical illness plans on the aforementioned parameters to choose the best and the most suitable policy for your coverage needs.