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All About Critical Illness Insurance

Critical Illness Insurance

Critical Illness Insurance has been gaining a lot of popularity over the past few years and for good measures. It is an insurance product where the insurance company will pay a pre-decided amount to the insured on the diagnosis of a critical illness. The policy also pays the sum insured if the insured undergoes any of the surgeries mentioned in the policy document.

Some of the most common medical conditions covered as a part of critical illness cover include third-degree burns, cardiac arrest, an organ transplant of major organs, cancer, serious renal diseases, coma, etc. However, insurance companies do not cover pre-existing diseases.

Depending on the insurance company, the policyholder might have to get through the survival period. The usual duration is of 30 days from the date of diagnosis of the medical condition.

Why Should you Buy Critical Illness Cover?

Here are three prominent reasons why one must get a critical illness cover.

  • Expensive Treatment:

    Diagnosis of critical illness usually is accompanied by medical bills that can be tough to swallow. If you already have a health insurance plan, you might run out of cover even sooner than you realise. Also, health insurance policies might not offer coverage for critical illnesses.

  • Recovery:

    Recovery from critical illness might take a while. In most cases, the number of leaves that you have might not suffice. And in some cases, the patient might find it difficult to get back to work. This makes it difficult for them to pay for the treatment and take care of other expenses. 

    The lumpsum payment of a critical illness plan will ensure that you don’t have to worry about treatment-related expenses. Since the pay-out is lumpsum in nature, you can use the amount for other expenses such as transportation or travel, if you have to visit another city for treatment or even another country.

Factors to Consider Before Buying a Plan:

It is advisable to compare a few policies before you zero down and purchase your critical illness insurance plan. Here are some of the factors that you must consider before purchase.

  • Go through the list of diseases that the policy covers
  • Go through the exclusion list (medical conditions that the policy does not cover) of the policy
  • The benefits of renewing the policy if you have not made any claims
  • It is a good idea to check the different options when it comes to the sum insured

The Right Coverage:

As you decide on the right coverage for your critical illness insurance, you need to keep the following three things in mind.

  • The sum insured should be at least twice your annual income
  • You should consider your personal liabilities for the new few years. Liabilities such as mortgages, loans, debts, etc.
  • Your age plays a crucial role. Should you start early, you can get a higher sum insured by paying a smaller premium

Critical illness insurance will ensure that you receive the best treatment possible without having to worry about medical expenses.

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