Critical illnesses such as cancer and diseases affecting the heart are on the rise. A standard health insurance policy might not offer enough coverage to cope with the high costs of treatment for such long term health conditions. You may need additional coverage in the form of critical illness insurance.
Critical illness insurance is a benefit-based plan that pays a lump sum amount of the sum insured when the policyholder gets diagnosed with any of the conditions covered. A good critical illness insurance plan will cover a wide range of diseases including cancer, end-stage liver failure, end-stage lung failure, and kidney failure requiring dialysis. Surgical procedures such as major organ transplants and surgery of aorta are also covered.
Critical illness insurance can, thus, provide much-needed coverage to help you afford life-saving care. As such, you must choose your plan wisely. In this article, we have listed down a few tips that will help you choose the right critical illness insurance plan.
- Look at the plan’s inclusions
A good critical illness insurance plan is one that offers coverage for many illnesses as well as surgical procedures. Apart from the number of illnesses, do also check the extent of the illness covered. For instance, your insurer may offer coverage for cancer only after the disease has reached a certain stage.
- Choose the right sum insured
A critical illness insurance plan often serves as income replacement during a serious illness. If you undergo a heart operation or get diagnosed with cancer, you may not be able to work for a long period of time. Yet, you would still need to pay your bills, afford the expenses related to your treatment, and so on. The lump sum payout from critical illness insurance can prove handy here. Therefore, you must choose the right sum insured. Critical illness insurance plans can even offer coverage that goes as high as Rs 1 crore – such a high sum insured might be a good option if you have many liabilities.
- Ensure that the premium fits in your budget
While extensive coverage is always a good thing, you must ensure that it fits in your budget. Once you have selected a good critical illness insurance plan, make sure that the premium fits within your budget. Think about the years to come and ensure that your premiums do not interfere with your other financial obligations.
- Examine the insurer’s reputation
The insurance company’s reputation matters a lot when you set out to buy coverage. Choose an insurer who has a good claim settlement ratio and favourable customer reviews.
- Read the exclusions
Finally, make sure to read the policy exclusions before you pay for your plan. This way, you can be sure of the details of your coverage and will not be in for any surprises when you need to raise a claim.
We hope that these tips will prove useful when you buy critical illness insurance. Do also keep your regular health insurance plan active so that you enjoy all round coverage against the expenses that accompany ill health.