critical illness insurance

The benefit of critical illness insurance is paid out as a tax-free, lump-sum cash payment. This payment is made upon the diagnosis of a covered critical illness, provided that the insured has survived for a specified period after the diagnosis (known as the survival period).

The lump-sum payment is highly flexible and can be used for a wide range of needs. This includes replacing lost income due to inability to work, paying for medical treatments not covered by health insurance, making modifications to a home to accommodate a new condition, or even covering travel expenses for specialized medical treatment. The funds are not restricted to direct medical costs.

A crucial aspect is understanding which specific illnesses are covered by the policy. Critical illness coverage is not universal; it is restricted to a predefined list of critical illnesses explicitly specified within the policy document. Eligibility for a claim depends on the diagnosis being for a condition that is listed as covered. Common ones include specific types of cancer, heart attack, and stroke. Many policies cover 25+ conditions like kidney failure, major organ transplant, paralysis, etc. Coverage varies by insurer and policy. Many critical illness insurance policies include the following Critical illnesses and conditions as covered :

Cancers and Tumours:

1. Benign Brain Tumour

2. Cancer (Life-Threatening)

Cardiovascular:

3. Aortic Surgery

4. Coronary Artery Bypass Surgery

5. Heart Attack

6. Heart Valve Replacement or Repair

7. Stroke (Cerebrovascular accident)

Neurological:

8. Bacterial Meningitis

9. Dementia, including Alzheimer’s disease

10. Motor Neuron Disease

11. Multiple Sclerosis

12. Parkinson's Disease and Specified Atypical Parkinsonian Disorders

Vital Organs:

13. Kidney Failure

14. Major Organ Failure on Waiting List

15. Major Organ Transplant

Accident and functional loss :

16. Acquired Brain Injury

17. Blindness

18. Coma

19. Deafness

20. Loss of Limbs

21. Loss of Speech

22. Paralysis

23. Severe Burns

Other:

24. Aplastic anemia

25. Occupational HIV Infection

+ Long-Term Care In case of loss of independent existence

Critical Illness Insurance pays a tax-free lump sum upon diagnosis of a covered health condition, regardless of your ability to work. Disability Insurance typically replaces a portion of your income on a monthly basis if you're unable to work due to injury or illness. They serve different, but complementary, purposes as living benefits.