The majority of individuals assume that having a standard health insurance plan provides comprehensive protection. However, the exorbitant costs for treating serious medical conditions like cancer, heart attack, or stroke, are typically greater than any standard health plan will cover.
Thus, in the event of such big health emergencies, the only thing that can stand between a patient and his financial ruin is critical illness insurance. In this type of insurance, compensation in a lump payment is given to the insured when a critical illness covered by the health plan is diagnosed. This one-time payment can be used to cover the cost of medical care.
But many people are not cognizant of the benefits of having critical illness insurance. And even if they are aware, they are unable to decide which one to purchase. In this post, we will compare two of the best critical illness plans, ICICI Lombard Critical Care and HDFC ERGO Critical Illness Insurance, so that the prospects can wisely decide which one to go for!
What Is ICICI Lombard Critical Care Policy?
ICICI Lombard Critical Care policy is specifically designed to secure the policyholder against various critical illnesses and allow them to be prepared for the unexpected costs arising out of the same. The company claims to offer wider coverage at pocket-friendly cost so that the insured members can specifically meet their requirements without burning holes in their pockets.
Simply put, ICICI Lombard’s critical illness plan is made to safeguard the insured against accidents, illnesses, or other unforeseen events that might occur throughout their lifetime.
What Is HDFC ERGO Critical Illness Insurance?
A unique health insurance plan called the HDFC ERGO Critical Illness Plan was created by HDFC ERGO to offer the best protection against critical illnesses. The Silver and Platinum variants of the plan provide coverage for 15 life-threatening illnesses. The plan will prove to be the best ally in difficult times thanks to its lower premiums and wider coverage, which will help the insured make better financial plans.
What Are The Key Features & Benefits Of ICICI Lombard Critical Care Plan?
Some of the key features and advantages of ICICI Lombard Critical Care Plan are as follows:
- Comprehensive Cover: When it comes to addressing life’s uncertainties, ICICI Lombard has always been a forward-thinking insurance company. In today’s environment, when unanticipated and severe diseases can occur at any time, ICICI Lombard Life offers thorough critical illness coverage in three different policies (9 Critical Illnesses, Personal Accident, and Permanent Total Disablement (PTD) Cover) that can meet any of the insured’s demands.
- Donor Expenses: Given that the organ donated is for the insured’s use and the company has accepted his hospitalization claim under the policy, the plan will reimburse the medical expenses incurred in connection with the donor for any organ transplant surgery up to a maximum of Rs. 50,000.
- Accidental Death Cover: The nominee (named in the policy) gets compensated with the Sum Insured (selected at the time of policy issuance) in the event that the insured passes away as a result of an accident during the policy period.
- Permanent Total Disablement (PTD) Cover: Critical Care protects the insured from the complete and permanent loss of limbs, eyes, etc. as a result of an accident. A lump sum benefit is provided in lieu of the compensation (sum insured selected). It should be underlined that the compensation is only due if the disability prevents the insured from finding or keeping a job that pays a living wage.
- No Health Check-Up: For purchasing the ICICI Lombard Critical Care policy, an individual is not required to undERGO any kind of medical check-up like most health insurance policies.
- Tax Benefits: The Income Tax Act’s Section 80D provides tax benefits to everyone who pays health insurance premiums. The tax benefits are limited to INR 50,000 for policyholders over the age of 60, and the same cap is reduced to INR 25,000 for those under that age.
- No 30-Day Survival Period: There is no 30-day survival period applicable under the plan and it gives the benefit immediately on diagnosis of any listed illness.
- Coverage For Alternative Medical Treatment: The plan also provides coverage for various AYUSH treatments, including Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy, which are important for health insurance policyholders.
- Reset Benefit: In the event that the policyholder has used up the entire sum assured during the policy cover, the policy offers a reset benefit that enables the insured to automatically reinstate the basic cover.
What Are The Key Features & Benefits Of HDFC ERGO Critical Illness Insurance?
Some of the key features and benefits offered by the HDFC ERGO Critical Illness Insurance plan are as follows:
- Up To 15 Critical Illnesses Covered: There is no denying the fact that the wider the health coverage, the lesser stress for the insured. Keeping in mind this fact, HDFC ERGO offers comprehensive coverage for a wide range of ailments.
- Lump Sum Payment: The company pays the sum covered in a single transaction to relieve the policyholder from the additional stress and time needed to check with the insurance provider for money clearing.
- Comprehensive Plans: The company offers two comprehensive plans that can best match the needs of the policyholder.
- No Medical Check-Ups: The plan does not require the policyholder to undERGO any kind of medical check-up up to the age of 45 years.
- Lifetime Renewability: The policy can be easily renewed for a lifetime period.
- Free Look Period: In case the policyholder is not satisfied with the terms and conditions of the policy, he/she can cancel the policy within 15 days of its issuance, which is the free look period of the plan.
- Tax Benefits: As per Section 80 D of the Income Tax Act, the premium paid under the policy is eligible for tax deductions.
Major Differences Between HDFC ERGO Critical Illness Insurance & ICICI Lombard Critical Care
Here are some of the most important factors that set both critical illness policies apart from each other:
|Parameters||ICICI Lombard Critical Care||HDFC Ergo Critical Illness Insurance|
|Minimum Entry Age||20 Years||5 Years|
|Maximum Entry Age||45 Years||65 Years|
|Policy Term||1, 3, 5 Years||1 OR 2 Years|
|Sum Insured Options||Rs. 3, 6, & 12 Lakhs||Rs. 1 Lakh To Rs. 50 Lakhs|
|Critical Illnesses Covered|
|Survival Period||No 30 Days Survival Period||30 Days Survival Period Is Mandatory|
|No Cost Instalment Benefit||Not Available||Available|
|AYUSH Benefits||Ayurveda, Yoga & Naturopathy, Unani, Siddha, & Homeopathy||Ayurveda, Homeopathy, Unani, & Siddha Only|
Which Is Better: ICICI Lombard Critical Care OR HDFC ERGO Critical Illness Insurance?
The two insurers offer almost all the features in their critical illness policies that are necessary according to IRDAI. In case an individual requires more comprehensive coverage in terms of illnesses covered, he/she can go for HDFC ERGO Critical Illness Plan since it includes 15 critical illnesses that are available in its ‘Platinum’ version. Whereas, ICICI Lombard Critical Care can be a great option in case a person is looking for a more budget-friendly option and wishes to cover only specific ailments.
In addition, since the HDFC ERGO Critical Illness plan also has a wider entry age limit (5 to 65 years), it helps the policyholder to stay covered for a longer period of time in their life. But in case an individual is looking for some special benefits like no survival period and reset benefit, he/she can choose to buy the ICICI Lombard Critical Care policy.
Thus, it entirely depends upon what the prospective policyholder requires from his/her critical illness policy. It is only after recognizing needs and budgets, that one can decide which policy is better for them! Always make sure to go through the policy brochure before choosing any of the two critical illness plans.