Critical illness insurance.
For a healthy 30-year-old non-smoker, buying critical illness cover early is usually worth it, because this period is when you can lock in the lowest premium you're likely to be offered. At this age, a Rs 15 lakh critical illness add-on can cost around Rs 3,750 a year. A Rs 20 lakh critical illness rider on a term plan can cost around Rs 6,660 a year.
If you wait until your 40s, premiums go up with age. You're also more likely to have developed conditions like high blood pressure or diabetes by then. These can lead to a higher premium, or the insurer may exclude them permanently.
Heart disease is no longer something that only shows up after 50. For many people in high-pressure city jobs, it's arriving in their 30s.
Estimates suggest that 12% to 16% of coronary artery disease cases in India now affect people under 40. Indians also tend to get heart attacks about ten years earlier than people in Western countries. Heart disease causes nearly a quarter of all deaths in India.
Cardiologists say a large share of their younger heart patients work in high-pressure jobs such as IT and finance. They link the condition to chronic stress, late nights, poor sleep, processed food and long hours of sitting.
Insurers price critical illness cover mainly on how likely you are to make a claim. At 30, with no smoking habit, that risk is about as low as it gets.
These figures are indicative. Your actual premium will depend on your city, medical history and the plan you choose.
A regular health policy and critical illness cover serve different purposes. Most young families only have the first one.
A family health plan pays hospital bills, and that matters, because cardiac procedures now typically cost Rs 3 lakh to Rs 8 lakh. But a heart attack costs more than the hospital bill. Recovery can mean months off work, follow-up care and changes to how you live. Meanwhile, EMIs and rent still have to be paid. Health insurance doesn't replace lost income.
Also, if several family members share one floater, a single cardiac claim can use up a large part of everyone's cover for that year.
This cover doesn't depend on your hospital bill. It pays out on the diagnosis. A critical illness plan pays a lump sum when you're diagnosed with a covered illness, such as a heart attack, open-heart bypass surgery, stroke or cancer. The payout is fixed, whatever the treatment actually costs.
You can use it for treatment, loan payments, household costs or income you lose while you recover. Claims are mostly based on medical proof of the diagnosis, so there's less paperwork than with a regular claim. You can also claim the premium as a deduction under Section 126 (previously 80D), within the usual limits, if you've opted out of the default tax regime.
The cheapest plan isn't always the best value. These details decide whether the plan actually pays when you need it.
Critical illness cover is currently inexpensive for a 30-year-old non-smoker working in a stressful city job, and it protects their income in the future. Waiting saves very little money and risks losing the cover entirely.
Keep your health policy for hospital bills, add critical illness cover to protect your income, and buy it while your health still gets you the lowest premium.
Disclaimer: The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the financial content as such. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites.
