Critical Illness Insurance For Family: Benefits And Things To Consider Before Buying

Critical illness insurance for families offers financial coverage against the medical expenses incurred for treating life-threatening diseases such as heart attack, cancer, renal failure, brain tumour, and more.

A regular family health insurance covers the hospitalization expenses. However, a critical illness cover provides a lump sum amount needed to manage various additional expenses associated with an ailment that is categorized as critical. 

Typically, you can buy critical illness insurance for your family as a standalone policy. However, you can also buy it as a rider along with a regular family health plan. Notably, a rider is a provision in an insurance policy that adds features or amends the terms and conditions of a base policy plan.

Insured individuals can seek cashless claims, ask for compensation for the loss of income, and do much more with a Critical Illness insurance plan.

Top Benefits of a Critical Illness Cover for Family

 A critical illness insurance plan comes with the following advantages:

Critical illness coverage

A regular critical illness insurance plan provides financial coverage for the treatment of several deadly diseases. These diseases include heart attack, cancer, kidney failure, brain tumour, blindness, Alzheimer’s disease, and many more. 

Payment of lump-sum amount

An insurer and his family are eligible to receive a lump sum amount as coverage after diagnosing a critical illness. This amount can be used for medical treatments, diagnostic tests, doctor consultation, hospitalization, and other purposes. 

Quick claim processing

The claim processing for most critical illness insurance cover is hassle-free. The insurance companies can easily process the claims based on the diagnosis reports. 

Source of income

In case the insured individual loses his income after being diagnosed with a critical disease, this insurance policy will offer a source of income. In addition, this will provide much-needed financial security to the family of the insured individual. 

Tax benefits

One can avail of tax deductions under the Income Tax Act with a critical illness insurance policy for the family. Policyholders are eligible for a tax exemption of up to Rs. 15,000 under Section 80D. However, senior citizens can avail of a tax deduction of up to Rs. 20,000 under the said section. 

Additional benefits

Various insurance providers offer a wide range of additional features with their CI insurance policy. Navi Critical Illness Cover, for instance, provides a child tuition benefit compensating for the education of the policyholder’s children in case of diagnosis of a critical illness. It also offers compensation for 2 critical illnesses even if the sum insured gets exhausted for the first illness. 

Download the Navi app to avail of the benefits of Navi Critical Illness insurance cover. Navi health insurance policies come with a 97% claim settlement ratio accepted at over 10,000+ hospitals in 400+ locations.

Also read: Critical Illness Insurance Plans: Do You Need It?

Exclusions under CI Insurance Plan

A critical illness insurance cover usually does not provide any financial coverage for the following conditions:

• The insured individual passes away within 30 days of the diagnosis of a critical disease
• Critical illnesses that develop due to alcohol or tobacco consumption or drug intake
• Critical illness diagnosed within the waiting period of the insurance policy
• Illnesses caused due to military operations, war, or nuclear incidents
• Dental care, cosmetic or aesthetic treatment
• Critical conditions arising out of pregnancy or childbirth
• Treatments for critical illnesses received outside the country 

Factors to Remember While Buying Critical Illness Insurance for Family

You can find numerous critical illness insurance policies in the market today. However, finding the right one that suits your requirement can be a tough job. That said, here are some of the key factors that you must consider while looking for a critical illness insurance cover:

Standalone or rider

A standalone critical illness cover will provide comprehensive coverage against the expenses of a critical disease. Consequently, the premium would be a bit higher. Rider CI insurance, however, would provide a lower sum insured for the same set of critical illnesses. 

This is primarily because rider CI insurance policies are dependent on the base policy. As a result, insurance experts usually recommend buying a standalone policy as it provides better coverage and features.

Maximum renewal age

Certain critical illness insurance policies cover up to a specific age, while some provide lifelong coverage. You must be aware of the exact age up to which you can renew the policy. Some critical illness covers prohibit policy renewal beyond the age of 60. Make sure to opt for a CI insurance plan that has a maximum renewal age.

Waiting Period

A critical illness insurance cover usually comes with a waiting period. You cannot avail of any coverage or raise a claim before the waiting period ends. Therefore, it is advisable to buy an insurance cover that comes with a lower waiting period.

Also read: How To Compare And Buy Best Critical Illness Insurance Plans

Final Word

Critical illnesses can be more financially devastating. They require extensive treatments that come at exorbitant prices. CI insurance plans with lump-sum coverage and additional benefits like child education support and income benefits provide robust financial security. 

Frequently Asked Questions

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