Who can all buy critical illness cover?
The minimum entry age to purchase the critical illness cover is 18 years, while the maximum age of purchasing the CI benefit cover is 65 years. While both male and female buyers can opt for the CI benefit at the same premium rates, female buyers have an additional offset on the rate of premium and a high cancer care cover.
Who can all buy critical illness cover?
The minimum entry age to purchase the critical illness cover is 18 years, while the maximum age of purchasing the CI benefit cover is 65 years. While both male and female buyers can opt for the CI benefit at the same premium rates, female buyers have an additional offset on the rate of premium and a high cancer care cover.
Overview
What is Term Insurance with Critical Illness Cover?
Max Life Insurance offers Critical Illness benefit as an add-on with its term plan variants – Online Term Plan Plus and Smart Term Plan. The Smart Term Plan provides financial security to your family in case of your unexpected demise during the term plan tenure.
On the other hand, the Critical Illness benefit will provide you financial security against 40 life-threatening health conditions such as kidney failures, cardiovascular diseases, and cancer etc. The CI benefit will provide a lump sum to you in case you are diagnosed with a critical illness. This way, you can take care of medical care and other miscellaneous expenses without damaging your savings
Working
How Does the Critical Illness Cover Work?
Akash, who is a healthy 30-year old working professional, decides to invest in Max Life Smart Term Plan for his family. He chooses a life cover of Rs. 50 lakhs for a policy term of 30 years, along with an additional Critical Illness coverage of Rs. 25 lakhs and opted for Future Premium Waiver in Case of Critical Illness or Disability.
Scenario 1: Akash pays all his premiums and survives the policy term.
The Increasing Accelerated Critical Illness Benefit will continue to increase by 5% p.a. of the Sum Assured chosen at inception. The maximum increase in ACI Sum Assured allowed is:
· Rs. 50 lacs, or
· 50% of the base policy Sum Assured chosen at inception, or
· 200% of the ACI Sum Assured chosen at inception
Also you will receive the complete amount of annualized premium invested under the base policy (additional premium amounts charged for benefits such as critical illness cover, accident cover option or rider add-ons will not be paid back) upon maturity of the plan, after which both the term plan and the ACI benefit will terminate.
Scenario 2: Akash is diagnosed with Stage-1 cancer after five years of buying the policy.
Upon diagnosis, Akash receives a partial lump sum payout of the CI benefit to help take care of the treatment expenses. The Death Benefit under the Term insurance plan will reduce proportionately, by the amount equal to the CI benefit paid out to Akash
Moreover, both the critical illness and the term life cover continue to protect Akash. Also, he will not have to pay any future premiums as he had opted for the premium waiver rider (In case he had not purchased the waiver of premium rider, he would have had to continue paying the future premiums as per the CI benefit plan renewal.)
Scenario 3: Akash develops renal complications due to his cancer treatment after undergoing cancer treatment for 2 years
In this case, he will receive the remaining amount of the ACI Sum Assured benefit upon diagnosis of the renal failure, after which the ACI benefit will terminate. However, the term plan cover will continue to provide financial security to Akash’s family, in case of his unexpected demise.
Diseases Covered
What are the conditions covered in critical Illness?
The Accelerated Critical Illness Benefit from Max Life Smart Term Plan covers the following 40 health conditions:
1. Cancer of Specified Severity (malignant tumour)
2. Angioplasty
3. First Heart Attack – of Specified Severity
4. Open Heart Replacement or Repair of Heart Valves
5. Surgery to Aorta
6· Cardiomyopathy
7· Primary Pulmonary Hypertension
8. Open Chest CABG
9. Blindness
10· Chronic Liver disease
11. Chronic Lung Disease
12. Kidney Failure requiring regular dialysis
13. Major Organ or Bone Marrow Transplant (as the recipient)
14. Apallic Syndrome
15. Benign Brain Tumour
16. Brain Surgery
17. Coma of specified Severity
18. Major Head Trauma
19. Permanent Paralysis of Limbs
20. Stroke resulting in permanent symptoms
21. Alzheimer's Disease
22. Motor Neurone Disease with Permanent Symptoms
23. Multiple Sclerosis with Persisting Symptoms
24. Muscular Dystrophy
25. Parkinson’s Disease
26. Loss of Independent Existence
27. Loss of Limbs
28. Deafness
29. Loss of Speech
30. Medullary Cystic Disease
31. Systemic Lupus Erythematosus
32. Major Burns
33. Aplastic Anaemia
34. Poliomyelitis
35. Bacterial Meningitis
36. Encephalitis
37. Progressive supranuclear palsy
38. Severe Rheumatoid arthritis
39. Creutzfeldt - Jakob disease
40. Fulminant Viral Hepatitis
Why You Should Buy
How Prone Are You To Any Critical Illness?
In India, the number of new cases of cancer and other critical illnesses is steadily increasing. In 2018, the Indian Council of Medical Research’s National Institute of Cancer Prevention and Research (ICMR-NICPR) released the India-specific data** from Globocan (Global Cancer Observatory).
It was reported that the number of cancer cases in the country has gone up by 15.7 percent since 2012, with a total of 11.57 lakh cancer cases reported in the year.
Globocan reported that there had been a 12.2 percent increase in the total number of cancer-related deaths since 2012, with approximately 7,84,821 people dying from the health condition in 2018.
Moreover, data presented by the Registrar General of India*, WHO (World Health Organisation) and Global Burden of Disease (GBD) shows that cardiovascular diseases (also known as CVD or heart-related health problems) are one of the leading causes of death and disability in the country.
Between 2007 and 2017, while the increase in deaths (across all ages) due to CVD had been 49.8 percent, the increase in mortality rate due to Chronic obstructive pulmonary disease (or COPD), stroke and diabetes have been 39.4 percent, 37.1 percent, and 53.8 percent respectively.
According to the Indian Heart Association^, almost 50% of all heart attacks in Indian men occur below 50 years of age while men under the age of 40 report 25% of all cases of heart attacks. Also, the male population in the country, between the age group of 30 to 74 is at a higher risk of cardiovascular diseases than the female population. While Indian women had a 12.7 percent risk of developing cardiovascular issues, approximately 21.4 percent of the males were at risk.
Overall, the working population in India, between the ages of 30 to 74 are more prone to developing cardiovascular diseases and cancer. The other ailments such as kidney failure, sclerosis, stroke or paralysis, too present a palpable risk to the population in India.
Difference
How is Critical Illness Cover different from Disability and Accidental Cover?
The disability and accidental cover and critical illness insurance cover two separate things. Accidental and disability cover offers to provide a lump sum while you are recovering from an injury sustained in an accident.
When you meet with an accident and suffer injuries or dismemberment, you are not able to return to your job immediately and make an earning. In this scenario, the additional financial assistance from the accidental and disability cover helps you recover without any stresses of not having a pay check.
On the other hand, a critical illness insurance policy will provide you with a lump sum of money to support your lifestyle with a life-threatening health condition or illness-related disability. Thus, you can opt for the best possible treatment for the illness without compromising your health or savings.
Overall, both these insurance covers offer comprehensive financial assistance to help you meet your household expenses along with therapy and medical care that is not covered under your health insurance plan.
Tax Benefits
Tax Benefits in Critical Illness Cover
The premium paid towards critical illness benefit qualifies for deduction under Section 80D of the Income Tax Act 1961. The below table depicts the tax benefits you can avail on the premium paid towards the critical illness benefit
DESCRIPTION |
PREMIUM PAID FOR |
MAX DEDUCTION |
|
SELF, SPOUSE AND DEPENDENT CHILDREN |
PARENTS |
||
Everyone is below 60 years of age |
Rs. 25,000 |
Rs. 25,000 |
Rs. 50,000 |
When your parents have crossed the age of 60 |
Rs. 25,000 |
Rs. 50,000 (incl. Expenses) |
Rs. 75,000 |
You and your parents have passed the age of 60 |
Rs. 50,000 |
Rs. 50,000 (incl. Expenses) |
Rs. 1,00,000 |
Preventive healthcare expense of up to Rs. 5000 is part of the maximum limit under this section.
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