Here’s everything you need to know about Critical Illness Insurance plans and why you need to invest in one right away. Read on.
Due to sedentary lifestyles, health issues have increasingly become more complex in nature. Cases of life-threatening diseases like cancer, heart attack, kidney failure etc. are on the rise. Therefore, an adequate Critical Illness Insurance plan is a must.
This will help you get adequate protection from unpleasant surprises like exorbitant medical bills and unforeseen medical emergencies and will supplement your income in case you are unable to work.
Here’s everything you need to know about Critical Illness Insurance plans.
What is a Critical Illness Insurance plan? :
A Critical Illness Insurance policy is a type of Health Insurance plan that pays a lump sum amount, equal to the sum insured, if you are diagnosed with a specified critical illness.
There are a lot of different Critical Illness Insurance plans available in the market. While some cover only a few ailments, others cover a wide range of critical illnesses. Usually, these plans cover around 8-15 diseases including cancer, heart attack, stroke, kidney failure, and coronary artery bypass surgery, among others.
Things you should keep in mind when buying a Critical Illness Insurance plan
Survival clause: Most Critical Illness Insurance plans come with a survival period of 30 days after a critical ailment has been diagnosed. The insured can only make a claim if he/she has survived this period.
Make sure you understand the diseases that are covered in the policy to avoid nasty surprises at the time of making a claim. For example, a policy covering cancer may not cover skin cancer.
You have the option to buy a critical illness plan as a standalone policy or you can buy it as a rider on a Health or Life Insurance A rider may be a bit cheaper than a standalone policy, but keep in mind that once your base policy ends, the benefits of a critical illness plan as a rider will also end simultaneously. Read more about critical illness riders here.
Don’t forget to read the policy documents carefully to understand several inclusions and exclusions associated with Critical Illness Insurance plans.
It’s important to compare different insurers before zeroing in on a policy. The Insurance Regulatory and Development Authority (IRDAI) also releases data on performance of insurers periodically. This includes information such as premium income, claim settlement ratio etc. which you can use to make an informed choice.
More: How To Select The Right Critical Illness Cover