Why you need to take Critical Illness Insurance policy when you already have Mediclaim Policy?

How many times you have asked yourself ‘Do I need to take a separate Critical Illness Insurance when i already have a Mediclaim Policy’. You will get the clarity when you complete reading this article.

Benefits of Critical Illness Insurance Policy

Combining Critical Illness with Mediclaim Insurance Policy

Let us take an example. Mr. X has developed a malignant tumor. He will be admitted to a hospital and will undergo an operation to remove the cancerous tumor.

Mr X will incur several expenses such as room rent, operation theatre charges, doctor’s fees, medical tests, medicines, etc. The mediclaim policy will take care of these expenses (including pre- and post-hospitalisation expenses according to the terms of the policy).

Now once discharged from the hospital, Mr. X may be advised by the doctor to take sufficient rest for say three months and undergo medication to recover fully from the trauma of a difficult operation. He will then not be able to resume work soon and will not have a regular income to take care of his living and other expenses. In such circumstances what Mr. X will do?

Mr. X will use his critical illness policy. As mentioned above, in this policy, Mr. X gets the entire sum insured soon after the diagnosis of ‘pre-specified’ disease (in his case, cancer). In this policy Mr. X is not required to submit any proof of expenses incurred/to-be-incurred.

Only a valid report from the doctor/hospital will be sufficient. The insured sum so received will take care of Mr. X’s living and other expenses till s/he is able to resume work and earn an income.

However, there are certain stipulations in the critical illness policy. Normally, a claim at the first diagnosis of any critical illness can be made provided the critical illness has been diagnosed after 90 days of the policy commencement date or the date of reinstatement.

Therefore, while the mediclaim insurance policy will cover the expenses incurred on treating the disease, a critical illness insurance policy can be used to cover the loss of income during recuperation period.

A Perfect Cost Balance too!!!

Cost wise, combining a mediclaim insurance and critical illness insurance, is a perfect balance. For instance, a mediclaim insurance policy for a 30-year-old with a sum insured of Rs 5 lakh costs around Rs 6,000 a year. A critical illness insurance policy with the same cover costs Rs 1,500 a year.

A Rs 5 lakh mediclaim insurance cover along with a Rs 10-15 lakh critical illness insurance cover is considered to be a decent mix. However, age and medical history are important while deciding the appropriate sum insured.

Combining a Critical Illness Insurance Policy with a Mediclaim Insurance Policy is a Win-Win Option!!!

To take the right critical illness insurance, health insurance, life insurance and other investments, preparing a fundamentally strong, fool proof financial plan is required. If you would like to create such a financial plan, then I would firmly vouch for you to take advantage of our