Connect with us

Things you Should Know Before Buying Critical Illness Insurance

All the details you’ll need to weigh the different factors to consider before purchasing critical illness insurance.

Getting critical illness insurance can be confusing. No one wants to choose the wrong plan and waste money. Therefore, let’s take a look at some of the things you should know before purchasing critical illness insurance.

Critical Illness Insurance Policy’s Terms and Conditions

The first thing to look out for is how the critical illness policy functions. In most cases, after you send your diagnosis to the insurance provider you can receive a lump-sum payment. You may use it to pay for surgery, hospitalisation, medications, doctor’s fees, or other expenses.

Make sure you read the policy thoroughly and pay particular attention to the following points:

Coverage
Different organisations have coverage for different diseases. The most difficult part of the process might be determining what is covered. Don’t just look at how many serious diseases are covered and choose the one with the most coverage, but you must know the precise definitions of the illnesses in order to prevent unpleasant surprises when it’s time to file a claim.

Exclusions
It’s just as important to understand what the policy doesn’t include in the coverages as it is to understand what is.

Claim Process
A claim process is clearly important for any insurance plan, and critical illness insurance is no exception. Study ahead of time what paperwork you’ll need to file and what the processes are for filing a claim so you’ll be ready when the time comes.

Benefits
In addition to understanding the essential benefits of a critical illness policy you should be aware of the additional benefits you receive when you purchase a policy from a specific company. It’s also a good idea to learn about the incentives available at the time of renewal for claim-free years.

Age of Coverage
Before purchasing a critical illness policy, find out how long the policy would protect you.

Key points

  • A critical illness policy is a type of insurance that promises to pay you a fixed rate if you are diagnosed with a severe illness that the policy covers.
  • A critical illness insurance can be standalone or an add-on to other types of insurance, such as health and life insurance.
  • It is important that you understand the coverage, exclusions and all other aspects of critical illness insurance before purchasing it.

Critical Illness Add-On vs Standalone Policy

Critical illness cover comes in two types: standalone critical illness insurance and critical illness rider. Both offer coverage against severe illnesses, but there are some factors that make them different from each other.

Standalone Critical Illness Insurance
Standalone critical illness insurance is a plan that provides comprehensive coverage for serious illnesses. It’s not attached to any other insurance, meaning you buy it specifically for critical illnesses. Since it’s not linked to other insurance, it offers high flexibility in respect of the sum insured. It can cover more than 30 ailments, but you must renew it annually or in a certain number of years. The premium may change with your age and health condition.

Critical Illness Add-On
A critical illness add-on, sometimes known as critical illness rider, is a policy that you add to your existing insurance product, such as life or health insurance. The coverage depends on the base insurance on which you are opting for a rider, so it might not be as flexible and as comprehensive as standalone critical illness insurance. It usually only covers 8-10 ailments. Also, the sum assured cannot exceed the coverage amount of the base insurance. You have to renew it along with the base insurance. This means that you don’t have to renew your insurance separately. However, if the base insurance becomes invalid, the add-on also stands invalid. The premium of critical insurance add-on remains the same for the duration of the base insurance, so it might be cheaper than standalone critical illness insurance.

Look For the Most Comprehensive Critical Illness Coverage Possible

When researching insurance companies look for critical illness coverage that offers the most protection, whether you are buying an add-on or a standalone policy. Pre- and post-hospitalisation costs, diagnosis expenses, care and medication are all covered by a good critical illness policy. Organ donors, day-care treatment, dialysis coverage, ambulance coverage and a second opinion are only a few of the advantages to think about.

Also, make sure you read the terms and conditions carefully to understand the policy’s exclusions. The insurer’s contract wordings are often difficult to comprehend. If you have any questions about any of the terms, speak to your representative before signing the documents.

Standalone critical illness policy offers high flexibility in respect of the sum insured.

Check What Is Not Covered Under the Critical Illness Insurance Policy

You can review the insurance company’s exclusions list before purchasing a critical illness plan. Exclusions are conditions that are not taken into account by the insurance provider. Examine all of the conditions that apply if you are unable to obtain the claim. Hospitalization costs as well as any other disease or treatment not included on the critical illness list are not covered by critical illness plans. Furthermore, the package would not include the following types of serious illness:

  • Critical illnesses that you have for a long time.
  • Illnesses resulting from war or radioactive pollution.
  • Illnesses resulting from the initial waiting period which can last anywhere from 30 to 90 days.
  • Illnesses caused by the use of alcohol, medications or tobacco<./li>
  • HIV/AIDS and other sexually transmitted diseases.
  • Pregnancy and associated costs.
  • Treatments for cosmetics and the like.

Before deciding a critical illness insurance, look at the list of diseases covered and see whether the insurance company can cover the majority of the critical conditions.

Inquire About the Waiting Period

The waiting period refers to the period during which the policy is payable. Before purchasing a critical illness package it’s a good idea to inquire about a waiting period. It is usually after 90 days from the start of the policy cycle in the case of serious illness and it is for 48 months in the case of pre-existing diseases. As a result, the critical illness insurance plan with a short waiting period should be considered.

Know Who Can Buy Critical Illness Insurance

If you have a family history of cancer, heart disease, diabetes or other disorders, critical illness insurance might be worth considering. In fact, you can begin looking for a plan as soon as possible to avoid being refused coverage due to a pre-existing condition. If you’re concerned that you won’t be able to pay for your medical treatment and family responsibilities you should look into critical illness insurance. Other people who may need critical illness insurance include the following:

    • Senior Citizens who have reached retirement age.
    • People who have a family history of critical illness.
    • Breadwinners
    • People who work in high-stress environments.
    • Individuals above the age of 40.

It is preferable to be financially secure in light of one’s daily routine, dietary patterns, pollution and stress level. The costs of critical illness treatment will deplete all of your savings. Therefore, you should consider purchasing a critical illness insurance policy. Check out our critical illness insurance plans which are extensive and provide the best coverage and benefits.