What is a Critical Illness Insurance Policy

A Critical Illness Insurance Policy from Bajaj Allianz General Insurance Company provides comprehensive financial protection when diagnosed with life-threatening conditions like cancer, heart attacks, or major organ transplants. Unlike standard health insurance that reimburses medical bills, this policy offers a lump-sum payment upon diagnosis, providing flexibility to manage medical or personal expenses during recovery. With critical health insurance, you have peace of mind knowing that financial support is available in challenging times.

What are the Key Features of Critical Illness Policy? 

With us, you can rest assured knowing that our Critical Illness Insurance cover has the following features to protect you:

Critical illness cover - This policy provides comprehensive insurance cover for 10 critical illnesses.

Flexible - Increase your sum insured at the time of your policy’s renewal and avail competitive premium rates.

Covers you and your family - This policy covers your entire family; including children above the age of 6 years.

Multiple sum insured options

- Sum insured options ranging from Rs 1 lakh to Rs 50 lakh for the age group 6 years to 60 years.

- Sum insured options ranging from Rs 1 lakh to Rs 5 lakh for the age group 61 years to 65 years.

100% payout - You can avail the payable benefit once you are diagnosed with a critical illness (given you meet the specific criteria as per the policy and survive 30 days after the disease is diagnosed).

Benefits with your Critical Illness Insurance

We provide extensive cover against critical illnesses along with other benefits:

Renewability -  

This policy comes with the benefit of lifetime renewability.

Hassle-free claim settlement - 

 We have an in-house claim settlement team that ensures a quick, smooth and easy claim settlement process. Also, we offer cashless claim settlement at more than 18,400 + network hospitals* across India. This comes in handy in case of hospitalisation or treatment wherein we take care of paying the bills directly to the network hospital and you can focus on recovering and getting back on your feet.

Tax saving -  

Avail income tax benefit under Section 80D of the Income Tax Act*.

*On opting for Critical Illness Insurance policy for yourself, your spouse, children and parents, you can avail Rs 25,000 per annum as a deduction against your taxes (provided you are not over 60 years). If you pay a premium for your parents who are senior citizens (age 60 or above), the maximum health insurance benefit for tax purposes is capped at Rs 50,000. As a taxpayer, you may, therefore, maximise tax benefit under Section 80D up to a total of Rs 75,000, if you are below 60 years of age and your parents are senior citizens. If you are above the age of 60 years and are paying a medical insurance premium for your parents, the maximum tax benefit under Section 80D is, then, Rs 1 lakh.

Portability Benefit -

If you are insured under any other critical illness policy, you can switch to this policy with all accrued benefits (after due allowances for waiting periods) to enjoy this policy’s benefits!

Tax Benefits under a Critical Illness Insurance Policy 

Purchasing a Critical illness health Insurance Policy can provide tax benefits under Section 80D of the Income Tax Act in India. Premiums paid for such policies are eligible for deductions, which help reduce the policyholder's taxable income. These tax benefits make Critical Illness Insurance a valuable financial tool for managing healthcare costs and offering potential tax savings.

*Tax benefits are subject to changes in tax laws.

Critical Illness Insurance Plan vs. Health Insurance Plan 

A Critical health Insurance Plan differs from a standard Health Insurance Plan in several key aspects. While a health insurance plan typically covers a wide range of medical expenses, including hospitalisation, surgeries, and routine medical care, a Critical Illness Insurance plan is more focused.

It provides a lump sum payment upon diagnosis of specific severe illnesses like cancer, heart attack, or organ failure. The policyholder can use this lump sum at their discretion, whether for treatment costs, rehabilitation, or even to cover daily living expenses if the illness impacts their ability to work.

Health insurance usually involves reimbursement or direct settlement with hospitals, while Critical Illness Insurance offers a one-time payout irrespective of actual medical costs, providing more financial flexibility during recovery.

Illnesses Covered under Critical Illness Insurance Plans 

Critical Illness Insurance typically covers a range of severe medical conditions that can have a significant financial impact on individuals and their families. The policy offered by Bajaj Allianz, for instance, covers ten major illnesses: aorta graft surgery, cancer, coronary artery bypass surgery, first heart attack (myocardial infarction), kidney failure, major organ transplant, multiple sclerosis with persisting symptoms, permanent paralysis of limbs, primary pulmonary arterial hypertension, and stroke. These conditions are selected due to their serious nature and the high costs associated with their treatment and care.

Factors to Keep in Mind While Opting for a Critical Insurance Policy 

Several factors should be considered when choosing a critical illness insurance policy to ensure adequate coverage and financial protection.

Covered Illnesses: 

Evaluate the list of illnesses covered by the policy to ensure they align with your health history and potential risks.

Benefit Amount:

Check the policy's lump sum benefit to ensure it adequately covers potential medical expenses and provides sufficient financial support during recovery.

Waiting Period and Survival Period: 

Understand the waiting period before benefits become payable upon diagnosis. Additionally, note the survival period after diagnosis to qualify for the benefit payout.

Renewability: 

Review the policy's renewability options, including whether it offers lifetime renewability to ensure continuous coverage as you age.

Portability Benefits: 

Consider portability benefits if you anticipate switching insurers in the future. These allow you to carry over accrued benefits without restarting waiting periods.

Exclusions and Limitations: 

Examine the policy's exclusions and limitations to understand what conditions or circumstances are not covered by the insurance.

Claim Settlement Process:

Evaluate the insurer's reputation for hassle-free and timely claim settlements. Look for reviews and feedback regarding the ease of filing claims and the efficiency of the settlement process.

How to Select the Best Critical Illness Cover Online? 

Choosing the right critical health insurance involves considering factors such as covered illnesses, sum insured, waiting period, and renewability. Look for policies with extensive coverage for conditions that align with your health history, a sufficient benefit amount to cover possible medical costs and a reasonable waiting period. Additionally, lifetime renewability, claim ease, and portability benefits are essential for long-term protection.

Documents Required for Critical Illness Insurance Claim 

Why Choose Bajaj Allianz Critical Illness Insurance?

A critical illness can have a huge impact on your life. You may not only have to make major lifestyle changes but also cope with unexpected and often, exorbitant medical expenses. The cost of medical aid is soaring and so are the incidents of critical illnesses, which bring with them mounting costs of hospitalisation and medical treatment.

It is, thus, imperative for every individual to equip themselves with a health insurance policy that covers critical illnesses, because in some cases, these illnesses may lead to the unemployment of a family’s sole earning member. Our Critical Illness Insurance cover is designed to protect you and your family against the financial burden of such life-threatening illnesses.

Our Critical Illness Insurance plan provides protection against major life-threatening conditions such as cancer, organ transplant, heart attack and more. Let’s look at the 10 medical conditions that are covered under this policy:

- Aorta graft surgery

- Cancer

- Coronary artery bypass surgery

- First heart attack (myocardial infarction)

- Kidney failure

- Major organ transplant

- Multiple sclerosis with persisting symptoms

- Permanent paralysis of limbs

- Primary pulmonary arterial hypertension

- Stroke