Are diabetics eligible for critical illness insurance coverage?

There are multiple ways of buying a critical illness cover. One alternative is to buy a stand-alone critical illness plan. Both general and life insurers offer stand-alone critical illness plans. You can evaluate the benefit offered by these plans on two broad parameters. First, consider the total number of critical illnesses covered. The higher the number of illnesses, the better the plan. You have many plans offering coverage for 4 to 30 illnesses. Second, evaluate the survival period in the plan. Survival period is the threshold within which if the policyholder dies after the illness is diagnosed, then the claim is non-payable.

Getting a critical illness cover for diabetes patients can be difficult. Most critical illness plans cover heart attack and other cardiovascular illnesses. Insurers attach high probability of occurrence of one of the critical illnesses with diabetic patients. Since you are not insulin dependent, it is an advantage for you.

I am 28 years old and plan to buy a term insurance policy. Do life insurance companies also provide health insurance? I already have a health cover of ₹5 lakh from my employer. Will additional cover from the life insurance company suffice or do I also need a stand-alone health insurance policy? If it is the later, should I let go of additional health cover in term insurance?

—Name withheld on request

You should consider buying a health insurance policy in addition to the coverage provided by your employer. As a rule of thumb, your health insurance sum assured should be a minimum of your annual income. Since you are already covered for the first ₹5 lakh with your employer, you could consider buying a top-up health insurance, instead of the regular health insurance plan. Top-up plans carry a deductible. This necessitates that you claim amounts up to the deductible in your other plans. Amount above the deductible claim can be claimed under the top-up insurance.

Generally, term insurance plans offer critical illness riders or other fixed benefit health coverage. You should prioritize buying a stand-alone indemnity health insurance plan before buying critical illness coverage. Fixed benefit plans pay a lump sum when an insured event occurs. Indemnity plans reimburse the medical expenses incurred up to the sum assured.

Abhishek Bondia is principal officer and MD, SecureNow.in

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Updated: 23 Nov 2023, 08:19 PM IST