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Features & Benefits of Critical Illness Insurance

Features & Benefits of Critical Illness Insurance

Life-threatening health ailments such as cancer, stroke, heart attacks (myocardial infarction) and paralysis are categorised as

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What is Critical Illness Insurance Benefit?

A critical illness insurance benefit offers coverage against various life-threatening diseases like heart attacks, cancer, renal failure, and stroke. Max Life Insurance provides Accelerated Critical Illness (ACI) Benefit with Max Life Smart Term Plan (A Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan UIN: 104N113V04).

Under Max Life Smart Term Plan, you receive coverage amount basis the cover option choosen at the initia stage, when diagnosed with any of the 40 life-threatening diseases covered under the plan. You can then use the lumpsum amount to pay for medical bills, hospitalisation expenses and surgery costs. The amount can also be used by your family to take care of their daily expenses.

Also Read: Features & Benefits of Max Life Smart Term Plan

Features of Accelerated Critical Illness (ACI) Benefit

The Sum Assured under ACI Benefit is payable on the diagnosis of any of the specified Critical Illnesses during the policy period.

You must remember that the ACI benefit is accelerated and not an additional benefit. In other words, it implies that the insurance coverage under the policy will continue to protect you, while the Death Benefit Sum Assured will get reduced by the extent of the ACI Sum Assured paid.

The maximum total payout under ACI benefit is 100% of the ACI Sum Assured, Once 100% of ACI Sum Assured is exhausted,no further ACI claims can be made.. There are two options available under Accelerated Critical Illness (ACI) cover to choose from:

1. Level ACI Benefit

The ACI Sum Assured is fixed herein and remains the same throughout the ACI policy term. You can choose any ACI Sum Assured in intervals of 5 lakhs subject to specific boundary condition as mentioned below –

Minimum ACI Sum Assured that can be chosen	Maximum ACI Sum Assured that can be chosen
Rs 5 lakhs	50% of the base policy Sum Assured chosen at inception or Rs 50 lakhs, whichever is lower

2. Increasing ACI Benefit

The ACI Sum Assured will increase at a simple rate of 5% per annum of the ACI Sum Assured, opted for at the policy inception. You can choose any ACI Sum Assured in intervals of 5 lakhs subject to specific boundary condition as mentioned below –

Minimum ACI Sum Assured that can be chosen	Maximum ACI Sum Assured that can be chosen
Rs 5 lakhs	25% of the base policy Sum Assured chosen at inception or Rs 25 lakhs, whichever is lower

The maximum increase in ACI Sum Assured allowed is –

a) Rs 50 lacs
b) 50% of the base policy Sum Assured chosen at the inception of the policy
c) 200% of the ACI Sum Assured chosen at the policy inception

The ACI benefit will stop increasing once an ACI claim has been made (including Angioplasty).

3. Protection Against 40 Critical Illnesses

The ACI Benefit under Max Life Smart Term Plan includes coverage for up to 40 life-threatening ailments, including stroke, cancer, heart diseases, epilepsy, and liver diseases.

4. Lumpsum Payment

You can claim the ACI Sum Assured immediately after getting diagnosed with a critical illness, in the form of a lumpsum amount.

5. Hassle-free Claim Process

Tou can make quick and hassle-free claims online after providing all the necessary documents.

Advantages of Accelerated Critical Illness Insurance Benefit

Accelerated Critical Illness (ACI) Benefit under Max Life Smart Term Plan can serve as the best protection against financial instability, in case you are diagnosed with a life-threatening ailment. With the comprehensive cover provided under the ACI Benefit, you can opt for the best possible treatment without worrying about burning a hole in your savings pocket.

Some of the major advantages of ACI Benefit and Max Life Smart Term Plan are:

1) Tax benefits under section 80C and Section 80D of Income Tax Act on the premiums paid for Smart Term Plan and ACI Benefit respectively as per applicable tax laws (Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. It is advisable to seek an independent tax consultation)

2) Payment of 100% of the ACI Sum Assured following a confirmed diagnosis of any one of the insured Critical Illness conditions (except Angioplasty) during the ACI benefit policy term
3) A Lumpsum amount is payable under ACI Benefit which you can then use for payment of treatment costs
4) Quick claim settlement after completion of documentation

Let's understand with an example of what is critical illness insurance, and why is it essential:

For instance, a person bought a policy with ACI Sum Assured of say Rs. 10 Lakhs. He is diagnosed with cancer three years after buying the policy. In this case the individual will receive 100% of of the ACI Sum Assured (i.e. 10 lakhs) following a confirmed diagnosis of one of the insured Critical Illness conditions (except Angioplasty). In case he was diagnosed with Angioplasty, ACI benefit pays lower of ₹5,00,000 or ACI Sum Assured and the policy will continue with reduced ACI Sum Assured for other insured Critical Illness conditions.

Also, since you have bought Accelerated Critical Illness Option as an add-on to the Max Life Smart Term Plan, your family will still receive the remaining Death Sum Assured under the policy, in case of your unfortunate demise due to the illness.

Now, you must have understood 'what is critical illness insurance?' and how does ACI benefit option offered by Max Life helps you during the times of need. Like simplicity of the features of critical illness benefit, the process of buying it also easy.

How to Buy Critical Illness Insurance Protection with Max Life Insurance?

Buying critical illness insurance protection with Max Life Insurance is seamless and hassle-free as the entire procedure is online, where you can also get help from customer executives to go through it.

Step 1: Click here to open Max Life Critical Illness Insurance page on our official website

Step 2: Click on calculate premium. It will redirect you to term insurance calculator

Step 3: Enter your details. Click on calculate now.

Step 4: Choose the required life cover amount under Max Life Smart Term Plan (UIN - 104N113V04; Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan). After filling details as per your requirement, click on proceed.

Step 5: Select Max Life critical illness add-on option to include coverage against life-threatening diseases (after paying a nominal additional amount of premium.) Apart from critical illness protection, you can also select Waiver of Premium Plus Rider (UIN 104B029V03; Non-Linked Non-Participating Individual Pure Risk) option in case you get diagnosed with any critical illness.

Step 6: Click on proceed after selecting the required add-ons

Step 7: Fill out the remaining details in the blocks to complete the policy buying procedure. Once all the details are filled, you can click on proceed.

Step 8: You will now be redirected to the payment window. If you want to edit the policy, you can go back, otherwise, proceed with making the payment.

You can choose between annual and monthly premium payment options for purchasing your critical illness insurance benefit under Max Life Smart Term Plan. Also, you can select between different payment methods to buy the policy.

After making the payment, you must fill out the proposal form, which mentions about your medical history, lifestyle habits, and more. Once you have filled the details, you will be contacted by executives of Max Life Insurance to proceed with medical tests as the final procedure for buying your critical illness benefit.

If you still have any queries about what is critical illness insurance, here are your common questions and their answers:

Frequently Asked Questions (FAQs)

ARN: Jan21/Bg/02B

Sources:

https://main.icmr.nic.in/sites/default/files/Nov1.pdf
https://www.maxlifeinsurance.com/content/dam/corporate/Brochures/Term-plans/English/smart-term-plan/smart-term-plan-prospectus.pdf

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