While individual health insurance plans are indemnity-plans i.e. the insurer pays the actual hospital expense, in the critical illness plans, the entire sum insured is paid by the insurer to the policyholder at the time of claim.
IFFCO Tokio General Insurance has announced the launch of its latest health insurance product, a critical illness benefit policy. Unlike most other critical illness plans in the industry, one of the significant features of the plan is that all family members can be covered in a single plan including spouse, children, parents and parents-in-law. As medical inflation is on the rise and treatment cost is increasing, one needs to insure for a higher amount than in the past. Also, the cost of treating life-threatening ailments is generally higher than regular hospitalisation costs. The critical illness plan of IFFCO Tokio General Insurance is offering a sum insured between Rs1 lakh to Rs 1 crore. Critical illness differs from regular Mediclaim or individual health insurance plans in the manner the claim is paid. While individual health insurance plans are indemnity-plans i.e. the insurer pays the actual hospital expense, in the critical illness plans, the entire sum insured is paid by the insurer to the policyholder at the time of claim after the diagnosis of the specified illness.
The critical illness policy of IFFCO Tokio General Insurance will provide a payment of a lump-sum amount in case a person is diagnosed with a critical illness such as cancer, organ transplant, Alzheimers, bypass surgery, etc. Apart from critical illnesses the policy also covers medical events such as blindness, deafness, loss of speech and loss of limbs. In total, the policy covers 25 listed critical illnesses, medical events or surgical procedures, during the policy period.
The policy may be purchased for either 1, 2 or 3 years and it comes with discounts being offered on family options. According to the insurer, the premium starts from Rs 257 for a sum insured of Rs 1 lakh for a person less than 25 years of age. For the higher sum insured of Rs 10 lakh and Rs 1 crore, the same person can buy the policy at an annual premium of Rs 2,566 and Rs 25,657, respectively.
Essentially, one should buy individual health insurance for self and family members even before starting to invest for long term goals. Thereafter, a critical illness policy may be bought to round-up the health insurance portfolio. Ideally, a critical illness policy can be purchased anytime depending on affordability but it is increasingly becoming important to buy it especially around the age of 40.