Decoding Corona Kavach

I'm pleasantly surprised to find that the Corona Kavach health insurance product is an effective one and something which is the need of the hour. A quick breakdown of the key features below

Who will find this useful?

If you have a corporate or personal insurance plan with a high coverage amount 

(roughly Rs 8.00 lakhs) then you don't need this product.

Who will be covered under this policy?

New born babies to parents (and in-laws)

The main applicant – proposer has to be aged between 18 - 65 years

It can be taken as an individual policy or a family floater (covering the whole family)

How much coverage (sum insured)?

Rs 50,000/- to Rs 5.00 Lakh

How long is the coverage for (policy tenor)?

3 ½ months, 6 ½ months, 9 ½ months including waiting period of 15 days

How much will it cost?

Typical family where the ages of Husband – 40 years, Wife 35 years, Children 10 and 5 years

Availing highest coverage - Rs 5.00 lakhs and highest tenure 9 ½ months

Premium is Rs 6,787

What are the benefits?

Hospitalisation expenses (person to be admitted for a minimum period of 24 consecutive hours)

Pre-hospitalisation expenses for 15 days prior

Post-hospitalisation expenses for 30 days after

Will home care treatment expenses be covered?

Yes, if there is positive diagnosis of COVID in a government authorized diagnostic center, maximum up to 14 days per incident

Will alternate treatment like Ayurveda be covered?

Yes, medical expenses incurred for inpatient care treatment for COVID under Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy systems of medicines

Is there a medical check-up?

No medical tests are required for this policy (irrespective of sum insured / age) 

Ensure all health related questions are answered truthfully to avoid claim rejection

To summarise, this is a useful product for someone who doesn't have health insurance or wants to boost their existing health insurance. The age limit of 65 years and that the applicants  should not have any pre-existing diseases limits the reach of the product. The positives are it is easy on the pocket, available for short tenures and no requirement for medical check-up which limits your contact with others. 

If you have any queries, please reach out to me at mathewpravin@yahoo.com or +91 9900335853.

Critical Illness Insurance – what, why and when should you buy?

Let me do a quick check before you start reading this article. Have you purchased health insurance or has your employer covered you? If your answer is no, then you should close this article and instead start assessing options to purchase health insurance (see my article here https://rorywealth.blogspot.com/2020/04/at-this-time-you-are-in-one-of-these.html). This is because a regular health insurance must be availed as one of the first steps in your financial journey. For a small annual payment, you can cover yourself from financial expenses related to health issues, whether it is minor or major. 

If you already have health insurance cover then you know what I’m talking about. Now you must consider purchasing critical illness insurance. It is categorized under health insurance but it has benefits that are different from a regular health insurance policy. To understand this better, I’ve done a comparison on key points in the table below 

To summarise, treatment of a critical illness can be very expensive and a regular health insurance policy may not cover it adequately. A critical illness insurance will provide a lump-sum benefit which can be used to manage unexpectedly higher medical expenses or take care of your livelihood in such difficult times. Like health insurance, it is better to purchase it at an early age and keep it going (as people tend to develop health problems as age increases)

I hope this article helped clear any misconceptions about critical illness insurance. If you have any queries or want me to assess your existing policies, drop a message to mathewpravin@yahoo.com / +91 9900335853 and I’ll be happy to help.