How to Choose the Right Critical Illness Insurance Policy?

Today, it has become quite easy to fall prey to various lifestyle diseases. There are chances you can suffer from non-communicable diseases such as cardiovascular ailments before the age of 70. However, these conditions can be avoided if you maintain a healthy diet and follow a strict exercise regime. Sometimes it is not in your hands to control the disease because it is hereditary, and so as you grow old, the chances of you contracting a life-threatening disease increase. The costs of such treatments can feel like a financial burden on your entire family.

If you already have a health insurance policy, you must consider purchasing critical illness insurance (CI) plan as well. It is advised that you must purchase the plan when you’re around the age of 40, as you’re at lesser health risks and the premiums are lower too. The everyday stress that you take due to work and other personal issues, you are at risk of getting a heart attack as early as at the age of 35. Therefore buying the policy early in life would be wise.

How does a Critical Illness Plan work?

The basic health insurance works a little differently than a critical illness plan. Under a CI plan, you receive a lump sum amount that is equal to the sum insured, in case you get diagnosed with a serious condition such as stroke, paralysis, etc. This amount can be used for the treatment of such ailments, and the amount that remains can be used to pay off any debt if taken. No matter how much amount is mentioned in your hospital bill, your insurance provider will pay the full sum insured. Therefore, the critical illness plans are defined-benefit plans because the amount to be paid is defined and fixed. Whereas, the other health insurance plans reimburse the expenses incurred.

What does a critical illness health insurance commonly cover?

Let us now take a look at what all is included under the CI plan by most of the health insurance providers:

  • Cancer of certain severity
  • Multiple sclerosis with persisting symptoms
  • Kidney failures
  • Cardiovascular diseases that include myocardial infections
  • Organ transplantation

The critical illness plan not only provides you a cushion if you’re diagnosed with any of the above-mentioned life-threatening diseases but also offers certain tax benefits under section 80 D of the Income Tax Act, 1961.

Waiting period

Another detail about critical illness insurance policies is that they mostly have a waiting period of about 30 days. In addition to this, you can always renew a CI plan whenever and keep doing it for a lifetime. Remember, once you make a claim and utilize the entire sum assured, the policy gets terminated.

The critical illness policies are fixed benefits plans which means the insurer will offer you a sum insured if you’re diagnosed with a critical illness mentioned in the policy. However, you can use this amount for various purposes such as medication, hospitalization, post-hospitalization expenses, or any other use.

Before finalizing any health plan, make sure to run a comparison because various general insurance companies will offer you the same coverage for affordable prices. You can also use the health insurance premium calculator to get instant quotes online. Lastly, make sure to go through the terms and conditions of the policy, along with inclusions and exclusions, so you don’t have to face any hurdle later.

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