I am 34 years old and received a type 2 diabetes diagnosis two years ago. Since then, I have been on medication, taking just one tablet a day, without the need for insulin. My insurance policy provides ₹1.25 crore coverage, including an accident coverage rider, but my application for a critical illness rider was rejected. Additionally, I have a comprehensive health insurance policy worth ₹5 lakh that covers diabetes, along with a super top-up policy of ₹95 lakh with diabetes coverage. In total, my mediclaim coverage is ₹1 crore. I am seeking advice on acquiring a critical illness policy for health insurance.
There are various ways to secure a critical illness cover. One option is to purchase a stand-alone critical illness plan, available from both general and life insurers. When evaluating these plans, consider the total number of critical illnesses covered; plans offering coverage for 4 to 30 illnesses are available. Additionally, assess the survival period, which determines whether the claim is payable if the policyholder dies after the illness diagnosis within a specified threshold.
Obtaining a critical illness cover for individuals with diabetes can be challenging, as many plans cover cardiovascular illnesses, including heart attacks. Insurers often associate a higher probability of critical illnesses with diabetic patients. However, being non-insulin dependent can work to your advantage.
I am 28 years old and plan to purchase a term insurance policy. Wondering if life insurance companies also offer health insurance, I currently have a health cover of ₹5 lakh from my employer. Would additional coverage from the life insurance company suffice, or should I consider a stand-alone health insurance policy? If the latter, should I forego additional health coverage in term insurance?
It is advisable to consider obtaining a health insurance policy in addition to the coverage provided by your employer. As a general guideline, the health insurance sum assured should be a minimum of your annual income. Since you already have coverage for the initial ₹5 lakh from your employer, you might opt for a top-up health insurance plan rather than a regular health insurance plan. Top-up plans typically come with a deductible, meaning you claim amounts up to the deductible from your other plans, and any claim above the deductible can be made under the top-up insurance.
Term insurance plans generally offer critical illness riders or other fixed benefit health coverage. It is recommended to prioritize the purchase of a stand-alone indemnity health insurance plan before considering critical illness coverage. Indemnity plans reimburse the medical expenses incurred up to the sum assured, whereas fixed benefit plans provide a lump sum payment when a covered event occurs.
