How Much Critical Illness Cover is Enough in India?
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Choosing the right critical illness cover amount is not just about picking a random figure. It requires informed decision-making by considering factors like your age, family medical history, liabilities, and more.
Generally, a critical illness cover of ₹10–15 lakhs is recommended for young professionals (25–35 Years), ₹20–30 lakhs for mid-career individuals (35–50 Years) and ₹15–20 lakhs for senior citizens (55+ Years).
Keep scrolling for detailed insight!
What Factors Decide How Much Critical Illness Cover You Need?
To choose the right coverage amount for your critical illness insurance plan, consider the following factors:
- Your Age and Family Health History: People with a family background of serious diseases such as cancer or heart issues, or those in higher age groups, often face increased chances of developing a critical illness. This often means you need a larger cover amount in the event of a critical illness diagnosis.
- Lifestyle Habits: Smoking, lack of exercise, and high stress increase the chances of developing serious illnesses. If you have lifestyle-related risks, opting for a higher critical illness policy sum insured makes sense.
- Current Health Insurance Limits: Evaluate the coverage limits of your existing mediclaim or employer health insurance policy. A critical illness insurance plan should fill any gap between this limit and the actual costs of treatment and recovery.
- Ongoing EMIs and Financial Obligations: If you have home loans, car loans, or children’s education expenses, consider how you would pay these bills if your income stopped due to a critical illness. Your cover should be enough to maintain your family’s lifestyle without financial stress.
When you look closely at these considerations, you will be able to decide on a critical illness cover amount that matches your personal needs and financial goals.
What do Critical Illness Plans in India Cover?
Some of the illnesses covered by critical illness insurance plans are:
- Heart attack
- Stroke
- Cancer
- Major organ transplantation
- Kidney failure
- Paralysis
- End-stage renal failure, etc.
With competition increasing, insurers are adding a wide range of other health conditions under their critical illness covers. Typically, the sickness to be covered is specified in the insurance policy documentation, though this can vary from one insurer to another.
What are the Benefits of Critical Illness Insurance Plans?
The benefits of a critical illness insurance plan are as follows:
- Financial Security: Covers the high medical costs associated with the treatment of serious illness without impacting your savings.
- Flexible Coverage: You can avail of a critical illness cover either as an add-on to your current health insurance plan or as a standalone policy.
- Reduced Stress: The financial security provided by critical illness health insurance allows you to focus on recovery without worrying about hospital bills.
- Tax Exemptions:Premiums paid for a critical illness insurance policy are eligible for tax deductions under Section 80D (old regime). This feature reduces your overall tax burden.