What is a Critical Illness Insurance Cover?
Critical Illness Insurance Plans provides coverage against specific life threatening diseases. Treating such critical illnesses may require multiple visits to the hospital over a long period of time. What this means is that in addition to the hospitalisation cost, there will be other costs like doctor visits, medical expenses, etc. A Critical Illness plan pays a lump sum amount that can be used to cover these high expenses.The good thing is that this lump sum payout is in addition to any mediclaim or health insurance policy that you may already have. Critical illness cover.
Health problems, in most cases, strike unexpectedly, resulting in a sudden financial burden for the family. In such cases, family is not only worried about meeting the cost of treatment, but also struggles with the loss of income they go through due to you being unwell. This most of the times, leads the family, to dip into their savings kitty built for child’s education or one’s own retirement. Your loved ones let go of their dreams to overcome financial exigencies health problems create.
Why should one buy a Critical Illness Cover, (even if you already have a mediclaim plan)?
Treating a critical illness takes time and money. If you are an earning member and are diagnosed with a major illness, it is quite likely that you will have to skip work to get treatment for it. This leads to a double trouble:
Losing your monthly income
Increase in expenses due to frequent visits to the hospital, high cost of medical tests and medicines that will be required for complete recovery
In this case, a mediclaim plan will only reimburse your hospitalisation costs. A critical illness cover goes beyond just hospitalisation costs and helps you cover other expenses like doctor consultation fees, cost of medicines etc. In addition to that, if you have any outstanding loan like a home loan or a car loan, the critical illness pay-out can help with dealing with the outstanding EMIs.
National life insurance company
If you do not have a critical illness cover, you may have to dip into all the hard earned money that you have saved. The high cost of treatment can erode years of savings in just a few months.
Tax benefits under the policy are subject to conditions under the provisions of the Income Tax Act, 1961. Applicable taxes will be charged extra as per prevailing rates. Tax laws are subject to amendments from time to time.
The CI Benefit for Angioplasty is subject to a maximum of 5,00,000. On payment of Angioplasty, if the CI Benefit is more than 5,00,000 the policy will continue for other CIs with CI Benefit reduced by Angioplasty payout and correspondingly Life cover reduced by the same amount. The future premiums payable for the residual CI Benefit and correspondingly reduced Life Cover will reduce proportionately.
The above mentioned premium rate is for ` 10 Lakh Cancer Cover and ` 10 Lakh Heart Cover for a 30 year old healthy male for a policy term of 5 years. The total single premium amount will be ` 6,223. If you choose monthly mode, then the premium amount works out to ` 158.
A discount of 5% on the first year’s premium will be offered on purchase of ICICI Pru Heart / Cancer Protect when life assured and his/ her spouse is covered under the same policy. The policy benefits of both the Lives Assured shall be independent of each other. The Sums Assured of both the lives could be different. A claim made by one Life Assured under the policy does not affect benefits of other Life Assured. This Family benefit has to be chosen at the inception of the policy only, spouse cannot be added once the policy is issued. This discount is not applicable on Single Pay Policy. With one policy, you can avail either Family Benefit or Loyalty Benefit.
Existing customer discount of 5% on the first years premium is available only for policies with Regular Premium Payment Option, it is not applicable for Single pay policies. With one policy, you can avail either Family Benefit or Loyalty Benefit.
A lump sum is paid out on diagnosis of any of the listed conditions. This payout is based on the level of the condition. In any case, the total payout in the policy cannot exceed 100% of the Sum Assured of the cover selected. Please refer to the sales brochure to know about the payouts at different level of condition.
The Company shall waive all future premiums on a claim of Minor condition under the chosen cover; or on the diagnosis of Permanent Disability (PD)of the Life Assured due to an Accident. If both Cancer cover and Heart cover are chosen such waiver is allowed on a minor/major condition claim under either Cancer cover or Heart cover; or on the diagnosis of PD. This benefit is available only if the Policy is in force as on the date of diagnosis of the condition/at the time of accident.
In case of Minor Conditions, the total payout will be capped at 100% of the Sum Assured.
Under the Income Benefit, the Sum Assured has to be chosen at inception of the plan. An amount equal to 1% of the Sum Assured chosen at inception will be paid to the policyholder each month, for a period of 5 years upon a valid claim under any of the listed Major conditions. Where the Cancer cover and Heart cover are taken together, pay out under Income Benefit will be triggered for only that cover for which a claim of Major condition is registered and all Benefits through other cover remains unaffected.
Term life insurance vs whole life insurance
With Increasing Income Benefit, the Sum Assured chosen at inception increases by 10% simple interest on each policy anniversary, for every claim free year. The maximum Sum Assured under the cover will be capped at 200% of the Sum Assured chosen at inception. This increase in Sum Assured will stop on occurrence of first claim under the cover. Where Cancer cover and Heart cover are chosen together, the Sums Assured for both the covers increase by 10% simple interest on each policy anniversary, for every claim free year. The maximum sum assured will be capped at 200% of the Sum Assured chosen at inception for each type of cover. In case of occurrence of first claim under any one type of cover, the increase in Sum Assured will stop for that cover type and Increasing Cover Benefit will continue for the other type of cover, for which no claim has occurred.
ICICI Prudential Life Insurance Company Limited. IRDAI Regn No. 105. CIN: U66010MH2000PLC127837. ADVT No: W/II/0976/2016-17. UIN: 105N151V03