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Explore HDFC ERGO’s Critical Illness Plans: Silver, Gold, Platinum

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A critical illness like cancer or kidney failure requires long-term treatment. It can drain you not only emotionally but also financially. In order to ensure your savings don’t get impacted, you should be prepared with critical illness insurance, which is particularly meant to cover critical or life-threatening diseases. Even if you have a health insurance policy, you must equip yourself with a critical illness plan because the health insurance policy will not be adequate, thereby increasing your out-of-pocket expenses.

Understanding Critical Illness Insurance

Critical illness insurance is a type of insurance product which provides financial security against life-threatening medical conditions like cancer, stroke, heart attack, kidney failure, to name a few. If you get diagnosed with any of the critical illnesses covered by your policy, you will receive a lump sum compensation up to the sum insured, irrespective of the cost of treatment. A critical illness requires extensive treatment, which can lead to loss of income and affect your savings significantly. A critical illness plan ensures your savings don’t get depleted, and you can utilise the claim amount as per your need, not necessarily on medical expenses only. For instance, the compensation amount can be used to balance lost income for household expenses or other financial commitments.

Features of Critical Illness Plans

Some features of critical illness plans offered by HDFC ERGO include –

1. Covers 15 critical illnesses

HDFC ERGO safeguards you from up to 15 critical illnesses such as cancer, kidney failure, heart attack, stroke, brain tumour, paralysis, Parkinson’s disease, Alzheimer’s disease, multiple sclerosis, etc.

2. Lump sum compensation

If you get diagnosed with any covered critical illnesses, the insurer will pay you a lump sum amount. The best part of this compensation is that you can use it the way you want and not restrict it to medical expenses. You can pay hospital bills, household expenses, or other financial obligations. However, you must survive a certain period after being diagnosed with the ailment to claim compensation. This period is called the survival period which ranges between 14 and 30 days, depending on the insurance company.

3. Easy access to claims

Unlike health insurance plans, the insurer will not ask for any bills or documents for raising the claim request. Only proof of diagnosis of the critical illness will suffice.

4. Shorter waiting period

The waiting period for critical illness plans is 90 days from the date of policy purchase.

5. Tax benefits

In addition to financial security, you are eligible for a tax benefit on the premium paid towards health insurance under Section 80D of the Income Tax Act. For policyholders below 60 years of age, the tax deduction is up to Rs 25,000 and for senior citizens, it is up to Rs 50,000.

6. No medical check-up

You don’t have to undergo any medical tests to buy this policy.

Critical Illness Plans offered by HDFC ERGO

HDFC ERGO offers three types of critical illness plans, and you can choose the one based on your needs –

1. Silver Plan: This is the basic plan covering only eight major critical illnesses like heart attack, cancer, kidney failure, etc.

2. Gold Plan: Under this plan, you will be protected against 11 major critical ailments such as paralysis, heart valve replacement, etc.

3. Platinum Plan: This is a premium plan and covers up to 15 life-threatening illnesses.

Do I Need both Health Insurance and Critical Illness Insurance?

Yes, if you are at risk of developing a critical ailment due to your lifestyle, work environment, or family history, then you must buy both health insurance and critical illness insurance. Here are some reasons –

1. A critical illness plan covers critical illnesses and provides a lump sum amount on being diagnosed with any covered ailment. Health insurance, being an indemnity-based plan, will compensate you for the actual expenses incurred.

2. The compensation under a critical illness plan can be used for medical as well as non-medical expenses, but a health insurance policy will only cover your hospitalisation expenses.

3. You do not need any bills or documents to claim the benefits of a critical illness plan, you have to only provide evidence of the diagnosis. But, in a health insurance policy, you must provide all the bills, lab reports, the discharge summary, etc.

4. The standard health insurance plan may not be adequate to cover a critical illness as the treatment is long-term and expensive.

Conclusion

If you have a family history of critical illnesses, you are at an increased risk of developing a critical ailment. So, it’s advisable to buy critical illness insurance in addition to your health insurance policy for additional protection against the high cost of treatment associated with critical illnesses. Buying it early will also allow you to complete the waiting period by the time you have to actually use the policy benefits. With three types of plans offered by HDFC ERGO, you can buy the one that meets your specific needs and save your finances from getting exhausted in settling medical bills.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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