Category Archives: Insurance Planning

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Illness cover

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Category : Insurance Planning

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Critical Illness cover:

Critical Illness meaning: 

It is a health condition that may seriously affect an individual’s day to day life and requires a hefty amount for this treatment.Further, critical illness also may cause lose of job due to incapacitated health condition.Owing to this an individual may opt for a critical illness insurance cover to arrest such a medical condition so that an individual’s family do not come to road due to this permanent disability.It has so far been evident that an individual’s family get rudderless to arrange money for treatment rather than being with the patient who need mental support at that time most.To counter this, therefore, an individual must take a critical illness insurance cover so that his future dreams for himself  and for his family too keep intact in future as well.

This is also very important to discuss here that some people compare health insurance with critical illness insurance cover.That is not right at all.As health insurance is for general medical conditions and critical illness insurance is for critical health conditions.

Which illness to cover:

  1. Cancer of Specified Severity
  2. First heart attack of specified severity
  3. Open chest CABG
  4. Open heart replacement or repair of heart valves
  5. Coma of specified severity
  6. Kidney failure requiring regular dialysis
  7. Stroke resulting in permanent symptoms
  8. Major organ/bone marrow transplant
  9. Permanent paralysis of limbs
  10. Deafness
  11. End-stage lung disease
  12. Fulminant viral hepatitis
  13. Major burns
  14. Muscular dystrophy
  15. Motor neuron disease with permanent symptoms
  16. Multiple sclerosis persisting symptoms
  17. Aplastic anemia
  18. Bacterial meningitis
  19. Loss of speech.

The critical illnesses mentioned above are  just indicative and not exhaustive in nature.Insurance companies may include some different illness as well which are not mentioned above.So, individual’s are advised to carefully read policy terms & conditions before purchasing and take utmost care while making inclusions the illness to their policies.We are not suggesting to read all the terms & conditions line by line but to understand which critical illness covers are included in their policies.

Some of the insurance companies and their coverages for critical illness are given below.

Insurance Company
Plan Name
No of Diseases Covered
Religare Assure 20
Bharti AXA General Insurance Smart Health Critical Illness – Lump sum 20
Max Bupa Health Insurance Health Assurance Critical Illness 20
Reliance General Insurance
Reliance Critical Illness 10
Total Health Plan 1 17
Total Health Plan 2 17
HDFC ERGO General Insurance Critical Illness Plan 8
HDFC Life
Cancer Care Silver 1
Cancer Care Gold 1
Cancer Care Platinum 1
Apollo Munich Health Insurance Optima Vital 37
CignaTTK Health Insurance
Basic 15
Enhanced 30
Edelweiss Tokio ET Criticare+ 17
PNB Metlife MetLife Major Illness Premium Back Cover 35
AEGON Life iCancer 1

Individuals are advised to go through the policy Terms & Conditions very well so that it does not indulge to any future mistrust upon insurance companies.An individual must consider some of the family medical history or background i.e some pre- existing illness of their parents and grand parents,which they are quite prone to continue due to heredity or genetics.Also, there might be some exceptional cases as well.

Benefits:

No need to worry if you are covered with critical illness insurance.The insurance company will provide you a lump sum amount if you are diagnosed with some of the predefined critical illnesses.It may so happen that your actual expenses are less but the characteristics of critical illness insurance policies is that the insurance company would pay the actual sum assured for different illness what ever may be the actual hospitalisation expenses.

This article is not meant for any financial indulgence to any insurance companies and rather the actual facts have been put forwarded for the readers.

“Happy Reading”

 

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Why one should take Term Life Insurance Policy

Category : Insurance Planning

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Term Insurance: Term Insurance is a Life Insurance product offered by insurance companies which provide for coverage for life of insured person for a specific period or term. The death benefit is paid to the nominee of the policy holder in the event of death of the insured person.Unlike, traditional life insurance policies Term Insurance does not give your money back if the insured person is alive during the policy period.Many people would consider this as one of the set back of term insurance policies.But, I would like to disagree with this thinking completely.Here, I would analyse why term insurance is way ahead of traditional life insurance.

Objective: An insurance policy should completely be meant for protection from any unprecedented events.We take insurance coverage for any unforeseen future contingencies like death of the sole bread earner,accidents, medical needs and many more.Therefore, we are pretty much sure about the objectives of taking insurance coverage.

Mistakes: Unfortunately, most of the people consider the insurance product as an investment.Whenever an insurance agent approaches to a person, he just simply asks the agent….. Kitna dene se kitna milega 20 saal baad“.

This means he is just simply bothered about how much money he is going to get back after a certain period of time.But, he never asks is this insurance coverage “Sufficient“.”Will this cater my family for another 30 years in my absence“. We don’t give priority to the coverage value,rather we ask for returns.That’s why most of the people in India are under insured.We must consider the adequacy of the insurance amount and not how much we would get back after the policy ends.

Motto: “We must not forget that an insurance is meant to cover the inherent risks only and we need to take protection against that”.Also, we have to take adequate insurance coverage considering our income profile and needs so that when the actual incident occurs, our family members do not feel that they are out of whack.

Awareness: Around 30% of the total Indian population are covered through insurance policies.This is very very less figure indeed.How many of us have heard about an awareness campaign or programme? The answer will be very few.Considering the present economic scenario many more people should be brought under this net.Also many more effective campaign need to take place to make people aware of the benefits of taking insurance policies.In my personal opinion pamphlets and leaflets may be distribute with the morning newspapers letting them know the necessity to take insurance coverage.

Principles: A person should take life insurance coverage for at least 10 to 12 times of one’s annual income.This means if a person earning ₹ 5 lakh annually, he must take life insurance coverage for at least 50 to 60 lakh.

Why Term Insurance: If a person(is 33 years old and policy term is 27 years)  wants to take life insurance coverage for 50 lakh, he has to pay around .2.08 lakh as annual premium under Traditional Life Insurance policies. On the other hand if he chooses a term insurance policy he would have to pay just an amount of 12,413/- annually for the same life coverage of ₹50 lakh .Now, see the difference.And one important question is how many of us can afford to pay annual premium of 2.08 lakh. The main reason why Term Life Insurance is much ahead of traditional life insurance policies is that it only prioritizes risk coverage and does not guarantee for anything else.

I would just conclude with one sentence………………

” Insurance is to cover the inherent risks only and not for anything else”

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