Hence it is important to evaluate the Health Insurance Plan as well while deciding on a Health Insurance coverage. Since the plans are complementary in nature, in an ideal scenario, one should ideally invest in both plans to ensure comprehensive coverage for their health.
Let us look in slight depth regarding the Health Plans for Cancer, Critical Illness etc.
A. Cancer Cover
Cancer Insurance is a specialised insurance plan that offers financial coverage through insurance for those unfortunately diagnosed with the dreaded Cancer disease. This cancer specific policy offers coverage for all costs associated with the diagnosis and treatment of cancer, including hospitalization, surgery, radiation and chemo (if necessary). The coverage is available at all stages of diagnosis including minor, major and critical stages and importantly these are fixed benefit policies which means that the benefit amount is payable irrespective of the actual expense incurred in hospitalization. Also, cancer insurance policies generally do not offer death, maturity or surrender benefits. These plans also have a pre existing exclusion for cancer ailments.
One must evaluate the following while purchasing a Cancer Cover Plan:
- Sum Assured – this needs to be sufficient for treatment of cancer, if it arises – but it will also depend on the income levels of the policy holder – no moral hazard.
- Waiting Period and Survival Period.
- Tenure of the Policy.
Purchasing a Cancer Insurance is worth it if:
- The policy holder has a family history of cancer (of any part of the body).
- Inadequate savings to take care of major illness that strike the family at an inconvenient time.
- Lack of Comprehensive Health insurance coverage if one is the only earning member.
Benefits of Cancer Insurance Plans:
- Lumpsum Sum Assured is paid on diagnosis of any of the covered forms of cancer.
- Covers multiple stages of cancer – Minor, Major & Critical Stages.
- Increase/Escalating Sum Assured for claim free years.
- Premium waiver is available on detection of cancer to the policy holder.
- Monthly income (under Regular Monthly Benefit) is paid out for a specified number of years subject to certain conditions, such as in case of major cancer diagnosis.
- Insurance cover continues even after the diagnosis of cancer.
- Tax benefits under section 80D of the Income Tax Act.
B. Critical Illness Plan
Critical illness plans normally cover a defined and named number of Critical Illnesses and they provide a lumpsum benefit on the diagnosis of any critical illness. While one may already have an individual health insurance plan or a health insurance coverage on their own or with provided by their organization, it may not always be sufficient to take care of ballooning medical expenses. Unlike health insurance plans, in this is a non participating non-linked health insurance plan the money can be claimed on diagnosis, the submission of hospitalization bills is not required.
Some of the features that the plans offered in the market are:
- Multiple Claims Option : The insured can claim multiple times during the policy term.
- Cover Against defined Critical Illnesses named under this plan – some of which are defined below:
- Open Chest CABG.
- First Heart Attack - of Specified Severity.
- Open Heart Replacement OR Repair of Heart Valves.
- Kidney Failure Requiring Regular Dialysis.
- Major Organ Transplant (Heart, Kidney).
- Stroke Resulting in Permanent Symptoms.
- Aorta Surgery.
- Aplastic Anaemia.
- Cancer of Specified Severity.
- Benign Brain Tumour.
- Major Organ Transplant (Bone Marrow, Liver, Lung, Pancreas).
- Permanent Paralysis of Limbs.
- Coma of Specified Severity.
- Major Burns.
- Total Blindness.
- Motor Neurone Disease with Permanent Symptoms.
- Multiple Sclerosis with Persisting Symptoms.
- No Hospital Bills required for a claims - All the insured needs is their diagnosis report to make a claim.
- Waiver Of Premium : All future premiums are waived after the first claim.
- Discount on large Sum Assured : Get discounts for higher Sum Assured.
- Get lump sum benefit on the diagnosis of Critical Illness.
- Tax Benefits : You can avail tax benefits under Section 80D and Section 10 (10D)