英语课文25A helping hand
Do you need extra insur-ance for life-threatening ailments when you have a comprehensive health plan and,maybe,a group cover from your employer?In such a ca,why buy another insurance policy and clutter the portfolio?
But what if you are diagnod with a critical ailment that requires specialid care while your health plan has a limit on doctors’fees and,thus,won’t cover the full cost of treatment?Or,say,there is a cap on specific expens such as on medicines,intensive care unit or prosthetics and your bill is more than what the insurer will pay.In such cas,you’ll have no option but to pay from your pocket.
Acute illness can also mean loss of income,total or partial disability and change in lifestyle.The financial burden could be far more than what an indemnity health plan,which pays hospital bills,would cover.Buying a critical illness plan is the best way to get over the shortcomings.
While an indemnity policy covers hospitalisation,a critical illness plan pays a lump sum on diagnosis of rious ailments listed in the policy document.
The lump sum that you get can be ud for various purpos such as to pay for expensive treatments or recuperation aids,make up for loss of income due to fall in the ability to earn or pay off debts.Both the plans provide benefits in different ways.
A critical illness plan is a supplement to your health insurance portfolio.
BALANCING ACT
The purpo of a critical illness cover is paying for expensive treatments.Plus,it is much cheaper than an indemnity plan.For instance,a comprehensive health plan for a 30-year-old with a sum insured of Rs 5 lakh costs around Rs 6,000 a year.A critical illness policy with the same cover costs Rs 1,500 a year.
“A comprehensive health plan covers a wide range of risks and is therefore significantly expensive than a critical illness plan that cov-ers specific situations,”says Arvind Laddha,
chief executive officer and managing director,Vantage Insurance Brokers&Risk Advisors.
A combination of comprehensive health insurance and critical illness cover can give a good balance between pricing and coverage.“A Rs 5 lakh indemnity cover along with a Rs 10-15 lakh critical illness cover should be a decent mix,”says Mukesh Kumar,head of strategic planning,HDFC ERGO.
WHAT TO BUY
Critical illness covers are fixedbenefit plans.One gets the full sum insured irrespective of whether one is hospitalid or not or what the treatment expens are.However,details vary from plan to plan.For instance,most plans have a survival period clau says the insured must survive for at least 30 days after he or she is diagnod with any critical illness to file the claim.But a few plans,such as ICICI Lombard’s Critical Care,do not have this clau.
The number of critical illness covered also varies.For instance,ICICI Prudential’s Crisis
Cover protects against 35 illness,Bharti AXA’s Smart Health covers 20 while Aviva’s Health Secure pays for 12 ailments.
The built-in coverage also differs from policy to policy.While some insure accidental death and partial or total disability due to accidents,some don’t.
“One should evaluate and compare a few different plans to decide which suits one the best.Consider the list of illness covered,the cover amount,the claim procedure and the payment history of the insurer,”says Suresh Sugathan,head,health administration team,Bajaj Allianz General Insurance.
Here are some points that must be considered while shopping for a critical illness policy.
THE RIGHT SIZE
The best way to decide how much cover you need is to know what the company is charging you for.If you know the benefits offered,it will be easier to decide how much protection you need.
Keep in mind factors like treatments costs,recurring costs and future financial liabilities in ca of income loss.
“Age and medical history are important while deciding the appropriate sum insured,”says Sanjay Datta,chief,underwriting and claims,ICICI Lombard General Insurance.The sum insured should be higher for the aged as they are more likely to develop chronic ailments.
Also take into account existing covers such as Mediclaim or personal accident and disability insurance policy.
STANDALONE OR RIDER?
While a critical illness plan can be bought as a standalone policy,critical illness riders are typically clubbed with life or health insurance plans.The policy terms and conditions under both the options are more or less the same.The choice between a standalone policy and a rider depends on your requirement.
