Benefits Of Health Insurance With Lump Sum Payout Option

Benefits Of Health Insurance With Lump Sum Payout Option

These days, a large number of insurers are offering their customers a lump sum payout in case of an unfortunate event like a critical illness or an accident.

Also known as fixed benefit plans, policies like personal accident insurance policy, critical illness health insurance policy, cancer health insurance policy, besides others pay you a lump sum in case of an unfortunate event. This is mainly because a lump sum payment comes in handy as compared to monthly payouts when some serious incident occurs. A few other benefits of a lump sum payout option are as follows:

A large sum of money

You receive a large sum of money in case the insured event takes place. The amount is equal to the sum assured, irrespective of whether the treatment of the eventuality has cost you so much. This provides financial security to you as the insured to overcome any liabilities the event may have caused you. This also helps you manage any future expenses related to the same.

No sub-limits

While regular indemnity policies have a cap on expenditures like room rent, doctor’s fees, and much more, a policy that pays you a lump sum has no such cap or sub limit. You may decide where and how much money you want to use.

Covers non-medical expenses

A lump sum payout ensures that apart from the regular medical expenses, even your non-medical expenses like hospital visits and post hospitalization care are taken care of. Also, in case the insured is not in a condition to work for some time after hospitalization, this amount covers expenses like school fees and other household expenses.

Keeps you financially secure

A lump sum payout ensures that your savings and other finances are secured in times of a medical emergency.

Cost-effective plans

Fixed benefit plans are cost effective and come at relatively lower premiums in comparison to the high payouts they provide you with.

Tax benefits

Fixed benefit plans like critical illness health insurance, cancer health insurance, and much more also come with a tax exemption on the premiums paid, as per Section 80D of the Income Tax Act, 1961.

Aditya Birla Health Insurance’s 4 Activ Secure products are among the popular insurance plans that offer a lump sum payout. Here is an insight into these health insurance plans.

Personal Accident Insurance

In the unfortunate event of an accident, this personal accident insurance policy by Aditya Birla Health Insurance ensures your finances are well secured, by offering you the following.

  • Coverage for accidental death, permanent or partial disability
  • Coverage if your vehicle or residence is modified due to the accident
  • Education and orphan benefit for the survivor’s children
  • Complete protection against EMIs and other loans
  • An option of a wellness coach to nurse you back to life

Critical Illness Insurance

In case you suffer from a critical illness, this critical illness health insurance policy offers you the following.

  • The flexibility to choose from three plans mainly:
  1. Plan 1 that covers you for 20 critical illnesses, where you receive 100% payout of sum assured on diagnosis of the illness.
  2. Plan 2 that covers you for 50 critical illnesses, where you receive 100% payout of sum assured on diagnosis of the illness.
  3. Plan 3 that covers you for 64 critical illnesses, where you receive 100% payout of sum assured on diagnosis of the 50 critical illnesses and 50% of sum assured on diagnosis of 14 critical illnesses.
  • Continuity of policy even after payout for an early stage illness.
  • 150% payout of the total sum assured on certain illnesses.
  • Tax benefits as per Section 80D of the Income Tax Act, 1961.
  • An option of a wellness coach.

Hospital Cash

This hospital cash insurance benefit by Aditya Birla Health Insurance protects you from unplanned medical expenses by offering you the following.

  • Daily cash benefit options ranging from INR 500 to INR 10,000.
  • Convalescence benefit in case you are hospitalized for more than seven days.
  • Accommodation benefit for parents.
  • Option of a wellness coach.
  • Tax benefits as per Section 80D of the Income Tax Act, 1961.

Cancer Secure

Aditya Birla’s cancer health insurance plan secures your finances against all stages of cancer by offering you:

  • Payouts on different stages of cancer that range from:
  1. 50% of sum assured in early stage
  2. 100% of sum assured in major stage
  3. 150% of sum assured in major stage
  • An additional payout of 100% of the sum assured in a major stage of cancer, even if you have made a claim for early-stage cancer previously.
  • Cumulative bonus of 10%, going up to a maximum of 100% of the sum assured.
  • A low survival period of barely seven days after the first diagnosis of cancer.
  • Option of a wellness coach to nurse you back to health.
  • Tax benefits as per Section 80D of the Income Tax Act, 1961.

A fixed investment plan is advisable in case of an unforeseen event as it protects not only your immediate financial requirements but also your savings and finances in the long run.

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