Questions One May Ask

If one already has either a life-insurance policy or a health-insurance policy, what can be done to include critical-illness cover? The strategy to follow is to first have a healthinsurance plan with adequate cover or a life-insurance plan with a sizeable amount as sum assured. Once you have any of these, you can add on a lump-sum benefit such as critical-illness cover as a rider benefit (by paying additional premium). Which is a better alternative – an individual policy or a family-floater plan? A family-floater plan provides for critical-illness cover of the sum assured (on an individual basis) to all the beneficiaries under the policy. Thus, if any of the beneficiaries invokes a claim on the policy, it will be settled subject to the sum assured, while the sumassured cover will continue the benefit for the other members of the policy. Additionally, the premium also works out cheaper.

Under an individual plan, the sum assured and the premium are based on the individual ages of beneficiaries and the sum assured required for coverage if a claim is made on the policy, then after settlement of the claim, the policy itself comes to an end. Besides, the premium is also more than that in family-floater plans. What are the tax benefits under a critical-illness policy? Income tax (IT) exemption is available with regard to this policy under Section 80 (D) of the Income Tax Act. IT exemption under Section 80 (D) is also available for an existing health-insurance policy where the rider benefit of critical illness is opted for.