Why Should You Buy A Critical Illness Cover?

Nowadays, one has to put a lot of effort into maintaining a healthy lifestyle. Modern work pressure and pollution have contributed to the added stress. We see that people as young as twenty are contracting life-threatening diseases. Life can be tough sometimes. Critical illnesses can strike anyone. It not only drains a person of his emotional and physical health, but the financial toll is tremendous.

The treatment cost of most acute ailments runs in lakhs—a single test for cancer costs around twenty thousand rupees. You can imagine what the entire treatment might cost. It robs the financial stability of one’s family. On top of it, the ability to earn reduces drastically. Life becomes a struggle between surviving and hoping for a healthy future. Critical illness insurance is specifically designed to tackle medical expenses in such life-altering diseases.

Critical Illness Policy

Critical illness policy provides coverage against serious ailments such as cancer, stroke, neurological disorders, renal failure, etc. It pays a lump sum amount to the insured after he/she is diagnosed with an acute disease mentioned in the policy. The amount is predefined and fixed at the time of buying the insurance. Not only medical costs but living expenses, loss of income are also covered in critical illness policy. 

Features of Critical Illness Policy

Inherent characteristics of a critical illness plan make it stand out from other health policies.

  1. Coverage 

Almost thirty-six critical ailments are included in the policy, namely, strokes, cancer, organ transplant, etc. Mostly, the coverage depends on the type of policy a person undertakes. For instance, a policy focused on cardiovascular diseases might not cover cancers. 

  1. Payment 

Insurance companies pay a lump sum amount to the insured for the treatment of mentioned illnesses. This amount is fixed and predefined. Also, the amount of insurance differs from policy to policy as specific ailments require higher cover than the others.

  1. Survival Period

The insured has to survive a minimum number of days after the diagnosis of the acute disease to claim the benefit of the policy. Usually, this period is thirty days. It may vary depending on the insurance company.

  1. Claim Process

Unlike regular health policies wherein hospitalization is mandatory for the claim, critical illness insurance provides the benefit of claim after the insured is diagnosed with the disease. Thus, it has a more straightforward claim process than a standard health policy.

  1. Income Loss

One of the best features of a critical illness policy is insurance against loss of income due to acute diseases. The lump-sum amount can be used in some proportion for filling in the earning gap. This ratio depends upon the insurer.

Selecting a Critical Illness Policy

A checklist makes things more precise, and the same is the case for finding the best health insurance for yourself. Keep in mind these parameters while selecting a critical illness policy for yourself or your family. 

  1. Sum Insured

You need to have an idea about the amount of coverage that will work best for you. The treatment cost varies from disease to disease, higher in few than the others. Check your lifestyle, family history, work-related health concerns to choose the right amount. Many sites have the facility to calculate the amount by giving specific information.

  1. Inclusions and Exclusions

Critical illnesses policy explicitly mentions the diseases that are included and excluded. It is not necessary that you will find all the thirty-six ailments being covered by a single policy. And if that’s the case, you might need to shell out a hefty amount for premium. For example, specific policies focusing on cancer may leave strokes out.

  1. Renewal Age 

The insurance industry does not provide renewal after 60-65 years as a common practice. Nowadays, the course has changed, and many insurance companies even provide lifelong coverage. You must inquire with your insurer up to what age you can renew the policy. Always go with a policy that offers maximum renewal age, i.e., entire life.

  1. Standalone or Rider 

A standalone policy provides comprehensive coverage and has a higher premium. In contrast, a rider depends on the base policy and includes coverage up to the regular health policy limit. If you have a mediclaim for five lakhs, then the rider will provide coverage for five lakhs only. For complete coverage, prefer a standalone policy.

  1. Sub-Limits

You must check the sub-limits in the critical illness policy. The total sum assured is divided into sub-limits for various medical costs such as tests, surgeries, etc. For example, if the total sum assured is ten lakhs with a 2 lakh sub-limit for tests and the actual test expense is three lakhs, then 1 lakh may go from your pocket. 

A critical illness policy safeguards your financial stability if, unfortunately, a life-threatening disease strikes. Insurance experts always advise having both regular and critical illness insurance plans for complete security. Hence, whatever age you may have, do consider buying a critical illness plan. The earlier you start, you will have to pay lower premiums with more coverage.

Leave a Reply

Your email address will not be published. Required fields are marked *