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Secure Your Future with Critical Illness Life Insurance

Critical Illness Life Insurance : Protect yourself and your loved ones from the financial burden of a serious illness. Get peace of mind with critical illness insurance.

The only insurance you need for your life's changing needs

Starting at ₹534/month*

A product of ACKO Life Insurance - ARN: L0021

 Critical Illness Insurance

Home / Life Insurance / Types of Riders in India / Critical Illness Life Insurance

Having a robust financial safety net is crucial in a world where uncertainties can knock on your door at any moment. That's where insurance comes in, providing you with the peace of mind that you and your loved ones are protected, even when life takes an unexpected turn.

In India, insurance is not just a wise choice; it's a necessity. With the ever-increasing cost of healthcare and the unpredictable nature of life, you must ensure your insurance plan covers all the bases. This is where the concept of a life insurance plan with a Critical Illness Rider steps in. Let's dive deep into this coverage and how you can benefit from it.

What is Critical Illness Life Insurance cover?
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When you get sick, your regular health insurance usually covers the basic medical expenses like doctor visits and hospital bills. But what if you get hit by a serious illness like cancer, heart attack, or stroke? These illnesses can be expensive to treat, and they can also affect your ability to work and earn money.

This is where Critical Illness Insurance comes to the rescue. It's like an extra layer of protection. When you have this type of insurance, if you're diagnosed with one of the serious illnesses listed in your policy (we have a set list), we will give you a lump sum of money. You can use this money however you want. Whether it's for medical bills, paying your mortgage, or even taking a well-deserved vacation to heal both physically and mentally – it's up to you.

The idea is to ease your financial burden when you're dealing with a major health crisis, so you can focus on getting better without worrying too much about money. So, Critical Illness Insurance is like having a financial superhero to help you when you're battling a serious illness, so you can heal and recover without worrying about money matters. It's not a replacement for regular health insurance but an extra shield when you need it most.

Why is Critical Illness Insurance important?
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Critical Illness Insurance is vital in India because it provides a crucial layer of financial protection during times of serious illness. This coverage is very important if you have a family history of critical illnesses. Here are other reasons why it matters.

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Financial Security
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Healthcare expenses can be exorbitant when dealing with critical illnesses like cancer or heart diseases. This insurance acts as a financial safety net, ensuring that you won't have to deplete your savings or take on crippling debt to cover medical bills.

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Peace of Mind
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 Coping with a severe illness is emotionally challenging enough without the added stress of worrying about money. Critical Illness Insurance offers peace of mind by guaranteeing that your finances are taken care of while you focus on recovery.

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Family Support
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If you're the primary breadwinner in your family, your illness can have a significant impact on their financial stability. This insurance provides a lump sum payment that can help your family maintain their lifestyle and meet daily expenses, even when you're unable to work.

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Access to Quality Care
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Serious illnesses often require specialised and costly treatments. Having this insurance means you can afford the best medical care available, potentially improving your chances of a successful recovery.

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No Waiting for Pre-existing Conditions
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 Unlike many health insurance policies in India that have waiting periods for pre-existing conditions, Critical Illness Insurance typically doesn't have such waiting periods. This makes it accessible to most people, regardless of their health history.

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Financial Planning Continuity
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 It acts as a safety net in your financial plan, allowing you to continue working toward your financial goals, such as buying a home or saving for your children's education, even if you face a major health setback.

In essence, Critical Illness Insurance is about ensuring that you and your loved ones are protected from the financial devastation that can accompany a serious illness.

How does a Critical Illness Policy work?
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A Critical Illness Policy is like a financial safety net. It's not the same as regular health insurance, which covers your typical medical expenses. Instead, it's designed to help you with significant health challenges that can be costly to treat. Here’s how it works. When you purchase a Critical Illness Policy, you agree to pay a yearly fee, known as a premium. This premium is like your membership fee to stay protected. In return, if you ever get diagnosed with one of the specific severe illnesses listed in the policy, you will get a lump sum of money.

What is Term Insurance with Critical Illness Insurance Cover?
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Imagine you have a special shield that protects you and your loved ones from unexpected troubles. Well, that's what term insurance with critical illness cover is like.

So, term insurance with critical illness cover is like having a double layer of protection. The regular term insurance takes care of your family if something happens to you, and the critical illness cover gives you a financial boost if you get seriously sick.

How to choose the best Critical Illness Insurance cover?
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Here are some tips to choose the best Critical Illness Insurance cover.

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Understand Critical Illness Insurance
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First things first, know what Critical Illness Insurance is. It's a type of insurance that pays you a lump sum if you're diagnosed with a serious illness like cancer, heart disease, or stroke. This money can help cover medical expenses and other financial needs.

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Assess Your Needs
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 Think about your health, family, and finances. Consider your age, any existing health conditions, and your family medical history. How much coverage do you need? This will vary from person to person.

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Sum Assured (Coverage Amount)
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Decide how much money you want as a payout if you're diagnosed with a critical illness. Ensure it's enough to cover medical bills, treatment costs, and provide financial support for your family during your recovery.

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Waiting Period
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Be aware of the waiting period. Most policies won't pay out if you're diagnosed within the first 30 days of buying the policy. Some have longer waiting periods for specific illnesses.

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Exclusions and Inclusions
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Read the fine print. Understand what's included and excluded. Some policies might not cover pre-existing conditions or certain illnesses in the early stages.

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Premium Costs
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Compare premiums from different insurance providers. Cheaper isn't always better; you want a balance between cost and coverage. Premiums can vary based on age, health, and the coverage amount.

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Claim Process
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Learn about the claim process. It should be easy and hassle-free. Check reviews or ask people who've made claims with the insurer to get an idea of their experience.

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Customer Service
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Good customer service matters. You want an insurer that's responsive and helpful when you have questions or need assistance.

How to buy a Critical Illness Plan online?
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Here’s how you can easily buy a Critical Illness plan online.

Step 1: Research and Compare

Before you buy a Critical Illness Plan, it's essential to do some research. Start by comparing different insurance providers and their plans.

Step 2: Download the ACKO app

You can buy a Critical illness insurance plan with our health insurance or life insurance plans.

Step 3: Share necessary information

Next, you need to share all the necessary information by answering a few questions.

Step 4: Medical Checkup (if required)

Depending on your age and the insurance plan, you may need to undergo a medical checkup.

Step 5: Payment

After you've filled out the form and completed any required medical checkup, you'll need to make the premium payment.

And that's it! You've successfully purchased a Critical Illness Plan online in India. Remember that having this coverage can provide financial security and peace of mind during challenging times.

What are all documents required at the time of claim?
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You may need the following documents while raising a claim against your Critical illness rider.

How to file a claim for a Critical Illness Insurance Policy?
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Our process is designed to be straightforward, ensuring that you can easily make a claim if the time comes. Below, we've outlined the steps for raising a claim.

Step 1: Download the ACKO app and log in

Start by downloading our user-friendly ACKO app if you haven't already. Then, simply log in using your account.

Step 2: Open your policy and initiate the claim

Within the app, locate your ACKO Insurance Plan and click on the "claim" option

Step 3: Upload the necessary documents and submit

Next, we'll ask you a few basic questions and request the essential documents. Take a moment to verify all the details, and once you're satisfied, go ahead and submit your claim.

That's all! We've made the process as hassle-free as possible for your peace of mind.

Exclusions of a Critical Illness Insurance Policy
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Imagine you have a Critical Illness Insurance policy. It's like a safety net that helps you financially if you get really sick with certain severe illnesses. However, there are some situations where this safety net won't catch you, and those are called "exclusions." Exclusions are the things that we can’t cover. Here are some of the exclusions of a Critical Illness Plan.

Who should buy a Critical Illness Insurance Policy?
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Imagine you're a person who works hard to take care of your family and yourself. You're healthy and doing well, but life can be unpredictable. Sometimes, serious illnesses like cancer, heart problems, or kidney diseases can happen to anyone, even if you're leading a healthy lifestyle. This is where a Critical Illness Insurance Policy comes in. It's like having a superhero shield for your health. Here's who should think about getting it.

  1. Breadwinners: If you're the main earning member of your family, getting sick can affect your ability to work. Critical illness insurance can provide money to cover medical expenses and help your family when you can't work.

  2. People with a family history of serious illnesses: If your parents or close relatives had critical illnesses, you might be at a higher risk. This insurance can give you peace of mind and financial support if you face a similar situation.

  3. Self-employed individuals: If you run your own business or work freelance, you might not have the same benefits as salaried employees. Critical illness insurance can cover you during times when you can't work and need expensive treatments.

  4. Anyone without substantial savings: If you don't have a lot of savings, a critical illness can put you in a tough spot. This insurance can help cover medical costs and other expenses so you don't have to dig deep into your savings or go into debt.

  5. People with high-stress jobs: Stress can contribute to health problems. If you have a high-pressure job, having this insurance can be a good idea because it can provide financial support when you need it most.

So, to sum it up, if you're the main provider for your family, have a history of serious illnesses in your family, work independently, don't have significant savings, or have a high-stress job, then you might want to consider getting a critical illness insurance policy. 

Tax Benefits of Critical Illness and Disability Insurance Cover
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Here are the tax benefits of buying these insurance covers.

1.Critical illness Insurance

a. Tax Deduction: The premium you pay for your Critical Illness Insurance is eligible for a tax deduction under Section 80D of the Income Tax Act. You can get a deduction of up to Rs. 25,000 per year if you're under 60 years old. If you're over 60, this limit goes up to Rs. 50,000.

b.Family Coverage: If you buy Critical Illness Insurance for your family, you can get an additional deduction of up to Rs. 25,000 (or Rs. 50,000 if you or your spouse is over 60) on the premium you pay.

So, in simple terms, you can reduce your taxable income by the amount you pay for Critical Illness Insurance, making it easier on your wallet when tax season comes around.

2.Disability Insurance

Disability Insurance is like a safety net. It helps you if you're unable to work due to a disability. Disability insurance payouts are typically tax-free. This means if you have a policy and you become disabled, the money you receive from your insurance won't be taxed. It's all yours to help cover your living expenses and medical bills.

Please review the rules related to the tax regime you have opted in for before buying insurance coverage.

Frequently Asked Questions (FAQs)
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Here are some common questions about Critical Illness Insurance.

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Is there a Waiver of Premium in Term Insurance with Critical Illness?

Yes, some term insurance plans in India offer a Waiver of Premium (WOP) benefit with Critical Illness riders. This means that if you are diagnosed with a critical illness covered by your policy, you won't have to pay the premiums for the remaining term of the policy, but your coverage continues. It's like a safety net during challenging times.

Why Your Corporate Health Plan may not be enough?

While corporate health plans are beneficial, they may not always be sufficient. These plans often have limits and may not cover specific critical illnesses comprehensively. Also, if you change jobs or retire, you might lose this coverage. So, having an additional individual critical illness policy ensures you have extra protection tailored to your needs.

What Documents are Required to Raise a Claim against Critical Illness?

To file a claim for a critical illness policy in India, you need.

  • A claim form

  • A medical certificate confirming the critical illness diagnosis

  • Original bills and medical records

  • ID and address proof

  • Policy documents

Always check your policy for specific document requirements, and keep these ready for a hassle-free claim process.

How much Critical Illness Cover do I Need?

The amount of critical illness cover you need varies depending on factors like your age, lifestyle, financial responsibilities, and existing health coverage. As a general rule, consider a coverage amount that can replace your annual income for a few years and cover medical expenses. 

Can I avail Critical Illness Coverage after being Diagnosed with Cancer?

Unfortunately, once you're diagnosed with a critical illness like cancer, it's challenging to get new coverage. It's essential to buy critical illness insurance before any diagnosis to ensure you're protected. So, don't wait until it's too late; secure your coverage when you're healthy.

Are Medical Tests Important to Get Critical Illness Cover?

Yes, medical tests are usually necessary when applying for critical illness cover. These tests help us assess your health and determine your premium. It's a way to ensure fairness in pricing and coverage. Providing accurate health information is crucial for a smooth insurance experience.

Can I take multiple claims under Critical Illness Cover for the same disease?

In most cases, you can't make multiple claims for the same critical illness under the same policy. Critical illness policies usually provide a lump sum payout upon the first diagnosis of a covered illness. 

Are pre-existing illnesses covered under this policy?

No, pre-existing conditions are not covered under Critical Illness Insurance.

Do I have to undergo a compulsory health check-up?

Yes, most insurance companies ask buyers to undergo a medical health check-up as a prerequisite.

What is the maximum sum that can be insured under this policy?

Most insurers provide a sum of up to rupees 50 lakhs. Kindly read the policy document carefully for detailed information.

Can I claim this policy for multiple medical conditions?

No, Critical Illness Insurance cover can be availed for one illness only.

If I have claimed the policy once, can I renew it?

No, if claimed once, the policy is terminated and cannot be renewed. You must buy a new policy.

Does Critical Illness Insurance cover all illnesses?

Most critical Illnesses are covered by Critical illness Insurance Plans. Exclusions under this category vary from one insurer to another. Kindly read the policy document for more information.

Do Critical Illness Insurance Plans have higher premiums than health insurance plans?

No, different insurers provide different benefits and come with varying prices. The best way to find a suitable policy is to compare the plans with other providers.

Is the amount disbursed immediately after the diagnosis of the illness?

The time taken to disburse the amount post-diagnosis is usually short and can be up to 90 days. This may vary from one insurance company to another.

Can I transfer my Critical Illness cover from one insurance company to another?

Yes, according to the rule passed by IRDAI - Insurance Regulatory Development Authority of India in 2011, you can transfer your policy from one company to another. Read the policy document for more information.

Should I buy Critical Illness Insurance?

Yes. Critical Illness cover provides a monetary cushion to you and your dependents in life-threatening circumstances and financial hardships.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.