In case one may ponder on the plans worth investing in that shall cover us during our most dire financial straits in the future, it is best to take up a critical illness cover. There are myriad reasons why one must invest in a critical insurance plan. Above all, it provides the insured with financial security to fall back upon when needed. We all have to admit that our life is uncertain and we are unsure about what the future holds. We are no strangers to critical illness like cancer, Alzheimer’s disease, chronic lung or liver disease or even coma that may devour us at any point in our life. The catch is that many of these critical illnesses get diagnosed after years and their treatment including medications and hospitalisation charges can cost a fortune for many. Besides the usual trauma for the family, diagnosis, the long-term treatment, hospitalisation charges, medical bills and other related expenses can quickly run up to six figures. Therefore, a term insurance works the best for contingencies arising in the future that may result in some grand out-of-the-pocket expenses.

We have some reputed companies in the insurance market that offer a critical illness cover. It is best to compare and choose an insurance coverage after taking in considerations factors like the coverage, premium, discounts and the terms and conditions.

In this article, we shall talk about the best term insurances plans that cover critical illness and also talk about the diseases that qualify as critical illnesses and what to look for in a critical illness cover.

Best Term Insurance for Critical Illness

Critical illness raiders are one of the most popular options considered by the insured nowadays due to increased health risks and complex and costly medical procedures. Different plans cover different types and numbers of critical illnesses and come with different premiums. While almost every critical illness raider promises to pay off in the lump sum after the insured being diagnosed with any of the illness covered by the policy, a few plans offer extra coverage for surgical procedures and other related treatment. Some may also provide enhancement of sum assured. Furthermore, to make the deal more attractive, some critical illness plans include benefits like child education benefit, personal accident benefit and loss of job benefit which requires the insured to pay a little extra than the usual for the coverages.

Below is the list of best term insurance plans that you may consider as a cover for critical illness:

1. LIC’s Critical Illness Benefit Raider- The country’s most trusted fund house offers critical illness insurance in the form of add-ons to a basic general insurance plan. The sum assured is paid only once and on the diagnosis of any one of the critical illness covered. The critical illness riders can only be attached to non-linked plans. The critical illnesses covered in the plan are:

  • Cancer of specified severity

  • CABG

  • Myocardial infarction

  • major organ or bone marrow transplant

  • kidney failure

  • permanent paralysis of limbs

  • strokes resulting in permanent symptoms

  • primary pulmonary hypertension

  • Alzheimer’s disease

  • multiple sclerosis with resting symptoms

  • aortic surgery

  • open heart replacement

  • benign brain tumor

  • third degree burns and blindness.

The minimum age for entry for this plan is 18 years up to the maximum age which is 65 years. The sum assured (minimum) as per this plan is Rupees 1, 00,000 and the maximum assured sum shall equal the death benefit of the general insurance plan taken up. In any case, the maximum sum assured should not be exceeding Rs. 25, 00, 000. The plan includes free look-up period of 15 days so that the insured may take time to go through all the terms and conditions of the policy and may as well cancel if case he is not satisfied with it.

2. Bharti AXA Flexi Term- The critical illness rider under Bharti AXA pays off a sum of Rs. 15, 00,000 irrespective of how much the treatment cost adds up. The entry eligibility starts from the age of 18 years and offers a life cover to the insured until the age of 65. The maximum maturity age for the plan is 85 years. The policy term may be ten years, 15 years, 20 years and 25 years and the frequency for payment of a premium may be monthly, quarterly, half-yearly and annually. The term of the premium payment has to equal the policy term. The minimum sum assured is Rs. 10, 00,000. There are also tax-benefits that the policyholder may avail on premium paid. The payout options are flexible, and the policyholder may choose from any of the following options:

  • Choose to take the payment one time and in a lump sum

  • A monthly payout for the next 15 years. The payout shall increase every year by 10%

  • Lump sum plus monthly where half the sum assured is paid in a lump sum, and the rest is paid in instalments every month for 15 years, the payout increasing by 10% each passing year.

​​3. DHFL Pramerica Flexi Term- This plan under DHFL is all the coverage that you need for yourself and your family. It is an all-in-one life insurance plan that secures the financial needs of the family in the future. Products like Life Health Hike and Life Total offer critical illness cover long with terminal illness cover and the basic life cover which extends the coverage to the policyholder’s benefit to aid him during the times to financial need. The premium rates are affordable plus the policyholder can avail tax benefits on premium paid while filing IT returns. The minimum age for entry in this policy is 18 years, the maximum being 65 years. The maturity age for the policy is 75 years, and the premium may be paid either monthly or annually. The plan assures a minimum of Rs. 25 lacs to the policyholder while there is no limit for the maximum sum assured. The policy also offers 30 days free look period from the date of policy inception. The insured may cancel the plan if he is not satisfied with the terms and conditions of the policy within this duration.

4. SBI Insurance Poorna Suraksha- Poorna Suraksha plan offered by SBI is a comprehensive coverage that provides both life and critical illness cover to the insured. It is  non-linked term insurance which is simple and reliable and takes care of all your financial needs. The plan pays off the critical illness benefit 14 days after the diagnosis of critical illness. The benefit shall be paid only once. The plan does not provide any maturity benefit, but one may gain tax benefits under this plan. The maximum coverage amount under this policy may go up to Rs. 2.5 crores.

5. Max Life Insurance Online Term Plus- The claim settlement percentage in this plan is one of the highest among all (97.8). This plan is similar to other traditional term insurance plans that provide life cover and also cover for critical illnesses throughout the policy term. The plan provides a death benefit, but no survival benefits are paid. All it requires for the policyholder to pay a nominal fee as premium annually for the tenure of the policy. The entry age for this plan is 18 years up to the age of 60. 40 critical illnesses are covered under this plan.

6. Bajaj Allianz eTouch Online term- The product is a comprehensive term insurance that offers life and accidental coverage to its policyholders along with inbuilt health insurance. One may also avail the benefit of premium waiver under this plan. A guaranteed sum assured is paid on the demise of the policyholder which will also lead to the termination of the policy. In the event of an accidental disability (permanent) the policyholder shall be eligible for the promised benefits while the remaining premiums shall be waived off. Multiple payment options are available including payment of premium monthly, quarterly, half-yearly or annually. The plan includes four variants: Shield, Shield Plus, Super Shield and Shield Supreme. There is also a free look-up period available for the policyholder to inspect all terms and conditions of the policy thoroughly and may choose to cancel it in case the plan does not satisfy our requirements.

But Critical Illness Cover Online

Buying critical illness cover online is the quickest and the most reliable options available which provide scope to the policyholder for comparison of some policies, calculation of premiums, sums up all the key features and highlights in a term insurance plan and more. When you log into websites of some companies you may also find the option of seeking help from a financial advisor regarding a critical illness add-on. Buying a policy online eliminates the hassle of paper-works and only requires a few documents like age proof, address proof and identity proof.

Buy critical illness insurance online and secure yourself and your loved ones even after your glory days fade.

Published by Charlesa Gibson