What Is Critical Illness Insurance?
Critical illness insurance policies cover serious ailments, life-threatening illnesses, and surgeries. These critical illnesses can prove to be a huge shock and disruption in someone’s life and which usually also put a burden on one’s finances.
When one has Critical Illness Insurance, the benefit is that it’s not necessary to be hospitalised to make good on the claim. Once diagnosed, a lump sum amount is paid to the insured, as long as the situation conforms to the company policy.
How Different Is It From A General Health Insurance Plan?
A general health insurance cover only takes care of expenses like the hospital room rent, consultation fees, ambulance charges, and medications administered during hospitalization. The reimbursed amount is usually limited only to the extent of the actual costs incurred.
On the other hand, critical illness covers extend their benefits beyond the hospitalization cost. They let you have full freedom to utilise the lump sum amount as per your needs. The money from the claim can be used to meet any expense ranging from getting a doctor’s second opinion to travel expenses.
Who Should Buy a Critical Illness Policy?
Due to the lifestyle and environmental changes, there has been a spike in the number of people getting diagnosed with serious critical illnesses. It is not easy to exactly assess who is at higher risk and should obtain such a cover. There are certain considerations that make it essential for you to consider critical illness policies:
History of Critical Illnesses in the Family:
The most common reason for getting diagnosed with critical illness is genetics. The risk of diseases like cancer is higher when there is a family history involved. It always helps to proactively protect yourself and secure a good financial future by considering a good critical illness insurance plan, in such circumstances.
Sole Earning Member of the Family:
If you happen to be the sole breadwinner of the family, it is extremely important to secure the entire family by taking up a critical illness insurance policy. This protects the family from the emotional and financial distress that comes with being diagnosed with a dreadful illness. These policies often act as an income substitute while also compensating you for the treatment cost.
Important Factors To Look At Before Buying A Policy
Diseases that are a part of the policy coverage:
Each company offers a different policy, make sure to choose one that best aligns with your healthcare needs.
Your financial stability:
This is one of the most important considerations to be taken into account while buying a policy. If you have enough finances to undertake the expenses that come with getting diagnosed with a critical illness, you can opt for a smaller coverage. It’s always safer to go the extra mile, as healthcare costs skyrocket at an alarming rate. It may not be prudent to have to dip into your savings, in the long run.
It is also imperative to understand what is not covered under your critical illness insurance policy. After the policy is bought, there is a waiting period during which no claims can be made. This period is different for each company and it’s advisable to do a comparative analysis before the purchase.