What is a critical illness insurance plan?

Ctitical Illness Insurance

It is an additional plan that will complement your basic health insurance. If the policyholder gets diagnosed with any critical illness then the company will provide the lump sum amount for treatment. Every insurance company has a list of critical diseases for which they are providing coverage. Generally, these diseases take a long time for treatment and that is too very expensive. So, opting for a critical illness insurance plan along with your basic insurance plan would prove to be a relief for your pocket.

Some common critical disease that is developing these days are:

  • Cancer
  • Heart attack
  • Kidney failure
  • Stroke
  • Permanent paralysis
  • Bone marrow transplant
  • Open heart surgery
  • Anaemia
  • Liver disease of end-stage
  • Lungs disease of end-stage
  • Organ transplantation
  • Loss of speech
  • Aortic surgery
  • Blindness
  • Third-degree burn
  • Brain tumour

Why is it important to take a critical rider plan for you and your family?

As per a recent survey, cardiovascular disease such as heart attack, stroke, and Pulmonary diseases will be the main cause of deaths in the coming days. Also, due to our unhealthy eating habits, our body is getting more prone to diseases these days. The age of developing a critical illness is decreasing day by day. Millennials are getting more prone to critical illness as compared to the earlier generation.

There are uncountable companies providing the best health insurance in India. Anyone can opt for critical illness insurance for themselves or their family members. A critical illness will reduce the capacity to work hence the patient will no longer be able to earn money for their family. This also triggers financial crises in families. A critical illness meaning can be better understood by the extreme health conditions when the person will not be able to earn or do work.

  • Those who have a history of any critical diseases can surely choose to add a critical illness cover with their policy.
  • People of more than 40 years are highly susceptible to detect any critical illness so they can opt for critical illness insurance to protect their savings.
  • People working in high-pressure jobs have more risks to be detected with a critical illness. High blood pressure can cause heart attacks, stroke, or paralysis.
  • The role of the earner in a family is most important and crucial. If anything will happen to them the whole family will have to face financial catastrophe. If the earner in your family has any medical history then they can purchase a critical illness cover to take care of treatment expenses.

Difference between critical illness insurance and a health insurance plan:

Critical illness insurance is completely different from the health insurance plan.

  • A simple health insurance plan will not include the treatment of critical diseases.
  • The treatment cost of the critical disease is way higher than the total sum insured of the health insurance. Also, the treatment of critical diseases will take too much time, maybe one year or more than that.
  • You can take advantage of the health insurance policy only after getting admitted to the hospital. But in the case of critical illness insurance, the lump sum amount will be simply provided on the diagnosis of the critical disease irrespective of the treatment expenses. If the treatment will take more than the sum insured amount then you have to pay that from your pocket. There are 36 critical diseases for which an individual can take medical coverage.
  • The waiting period in the critical illness cover depends on the seriousness of the illness. Whereas in the regular health insurance policy, you have to serve a default waiting period of 30 -90 days.

Factors that you should remember while choosing a critical illness insurance policy:

  • Sum insured: You have to determine your need for sum insured before purchasing a critical insurance plan. Treatment of some diseases cost less than compared to other diseases. A predetermined coverage will help you to get the right policy as per your requirement.
  • Sub-limits: Every critical illness plan has a mandate sub-limit applicable to it. Under this sub-limit, you have to pay some percentage of the total sum insured at the time of treatment. Make sure to go for lower sub-limits otherwise, you have to face the consequences by paying a high amount from your pocket.
  • Maximum age renewal: Specific critical diseases are covered up to a certain age. So, it is important to know the exact age up to which your disease is covered. Most of the insurance companies will not cover critical illness after the age of 60.
  • Age: The probability of getting diagnosed with critical illness automatically increases with age. To deal with this situation, you can consult an insurance expert. He will help you to determine the perfect plan according to your age group.
  • Waiting period: All the critical illness insurance has a feasible waiting period of one month. But for certain diseases, it can be more than the normal waiting period. You can compare different policies and go for the insurance plan with a low waiting period.
  • Exclusions in the plan: A critical illness cover will not cover all types of surgeries and diseases. In some cases, the policyholder should have to follow certain conditions to cover critical illness. While some diseases are permanently excluded in insurance policies. So, you have to choose wisely among the plans that cover your illness.

A standalone critical insurance policy is way different from a critical illness rider. A standalone policy has a high premium and provides comprehensive coverage. Where a rider plan has a comparatively low premium and provides less sum insured for treatment. you can take the advice of insurance experts to choose the best critical illness insurance plan for you