Children’s Critical Illness Insurance

You can add Critical Illness Cover to your life insurance policy for an additional fee. Children’s Critical Illness Cover will automatically be included.

For the full terms and definitions of Critical Illness Cover, you must refer to the original policy documents. You may not be covered for the same critical illness as those listed below.

What is critical illness insurance?

This is a type insurance that provides coverage for life insurance companies. It pays out a lump sum tax-free if the insured is diagnosed with a serious illness or has to be hospitalized. These critical illness coverages are available as either an add-on (a crucial illness rider), to a life insurance policy or as a standalone policy. Critical illness insurance provides financial support to the insured and their families as they deal with the financial and medical consequences of a life-threatening disease. This is in contrast to traditional life insurance. The policy stipulates that the critical illness benefit will only be paid to an insured who is diagnosed with a covered disease. The insured can use the proceeds of the insurance at his/her discretion (or that of the parent/guardian if a child’s critical illness policy applies).

What is Children’s Critical Illness Insurance?

If your child is diagnosed as having a critical illness, you can receive a lump sum payment tax-free. The insurance proceeds provide financial protection to the parents and their families, allowing them to focus on the child’s rehabilitation if they become seriously ill. This policy provides coverage similar to that for adults with critical illnesses, but there are some additional conditions. Additional childhood illnesses are covered by this policy for children.

What is Critical Illness Policy and How Can It Help?

Critical Illness Insurance covers an insured against life-threatening diseases like cancer, heart attack, and renal failure. This policy provides a lump sum coverage amount that can be used to cover critical illness expenses.

Critical Illness Insurance Plans: Features

These are the key features of critical illness insurance policies:

Critical Illness Insurance-Coverage can be provided for up 36 major critical illnesses, such as cancer, kidney disease, heart conditions, and so on.
Lump-Sum Payment- The insurer pays a lump sum for the treatment of covered diseases.

A glance at Children’s Critical Illness:

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Eligibility	The policyholder can have natural, legally adopted, and stepchildren as well as any future children. Children are covered from the time they turn 30 days old until their 18th birthday, or 21st birthday if they are in full-time education.
Waiting period	The relevant amount of coverage is payable if a child is diagnosed during the term with one of the critical illnesses we have listed and survives 14 days after diagnosis.
Benefit level	Maximum coverage for children with critical illnesses is up to PS25,000, or 50% of the amount you have.
Claims	One claim per child can be made. We will only pay for two children. There is no payment for death. Children’s Critical Illness Cover is not applicable to any claim.
Exclusions	The condition of the child at birth The symptoms usually first appear before the child is covered. Within 14 days of being diagnosed with critical illness, the child dies

Additional benefits include Children’s Critical Illness Insurance

Child Accident Hospitalisation Insurance

We’ll pay PS5000 to you if your child is hospitalized with physical injuries within 28 days of an accident.

We define a “physical injury” as one that results solely and directly, and without regard to any other causes.

If we don’t pay out under Children’s critical illness cover, the benefit will not be paid. One claim per child will be paid, up to two children max. We will not pay more than PS10,000 to a child who is covered under multiple policies.

Child Funeral Benefit

We will pay PS4000 towards your funeral costs in the unfortunate event that your child dies. Each policy covers up to two Child Funeral Benefit claims. Some conditions apply as well:

The claim would be denied if the child was in a condition that prevented them from being born.
If the death occurred before the policy was created, the claim would not be paid.
If we have not paid a critical illness claim on the child, the claim would not be paid.

Childcare Benefit

We will pay up to PS1000 towards your childcare costs while you are recovering if you, the parent, file a claim for critical illness. After receiving proof of payment from an approved child-minder, the claim will be processed. It is applicable to natural children, legally adopted children, and step-children under five years of age. This benefit covers childcare for the first 18 months after your diagnosis.

Family Accommodation Benefit

We will pay PS100 per night for every night your child stays in hospital during the first three months following diagnosis. This includes up to PS1000.

Benefits of Critical Illness Insurance

What will happen to your family and you if you are unable to work due to a serious illness? How will you pay for your medical bills?

We don’t want to make you feel scared. However, we do want you to be aware and prepared for the serious consequences that a critical illness can cause.

A critical illness best insurance policy can be a foolproof method of protecting your future from critical illnesses. After a diagnosis of a covered critical illness, you will receive a lump sum.

Critical Illness Insurance Policy: Tax Benefits

The Income Tax Act, 1961 provides tax benefits for policyholders. Exemptions up to Rs. Section 80D can be used to exempt Rs. 15,000 from tax under the Income Tax Act, 1961. Senior citizens may be eligible for tax benefits up to Rs. The same section also provides for 20,000.