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How to Choose Right Critical Illness Health Insurance Plan?

Team AckoJul 22, 2021

With the rise in critical illnesses, one could get worried about the future and the loved ones. But being financially prepared to combat the illness and avail the best possible treatment will definitely sail your ship in rough waters. In this article we will discuss how you can prepare yourself with the right critical illness cover.

How to Choose Right Critical Illness Health Insurance Plan?

What Is A Critical Illness Cover?

As the name suggests, this cover extends financial security in the most difficult situation, i.e. if you are diagnosed with a critical illness. This cover can be a part of your life insurance coverage or can be bought as a standalone cover. A critical illness insurance offers coverage for a number of diseases. Remember that the premium depends upon the number of illnesses covered, thus, higher the number of diseases covered higher will be the premium. This is why, instead of opting for bulk coverage, choosing a certain number of diseases will help you to keep the premium amount lower. Consider opting for common illnesses like stroke, cancer, bypass surgery of a coronary artery, paralysis, failure of a major organ, etc.

Also, read: Critical Illness Insurance Cover for the Self Employed

How To Choose The Right Critical Illness Cover?

Choosing the right critical illness insurance solely depends upon your physical and financial situation. Here are a few factors that will help you determine the right critical illness cover:

  1. Age: Buying a critical health insurance early in life will prove to be beneficial from a monetary point of view. The price of these plans is lower for young policyholders. However, it’s never too late to get a financial protection against an unprecedented illness.

  2. Financial Status: If you are financially stable in life, you may consider opting for a policy with a lower sum assured. However, if you are in debt and have a loan, say home loan, to pay off, consider buying adequate coverage that would provide maximum financial help.

  3. Depends: If you are a part of a nuclear family setting, you can select a lower coverage. But if you have more number of dependents like senior citizens and/or relatives to look after, consider selecting a plan with a higher sum assured.

  4. Family History: Apart from the basic number of diseases covered by the plan, you can choose coverage against certain specific illnesses. These can be selected based on family history. Speak to your family members and try to find if any member of the previous generations suffered from a critical illness. Buying a cover accordingly will be helpful.

  5. Features of the cover: When you set out to buy critical health insurance, make sure that you compare the features of similar policies offered by various health insurance companies. Opt for a policy that is rich in useful features and provides adequate coverage.

  6. A support to the current health insurance plan: As mentioned earlier, critical illness insurance can be a standalone plan or a part of your health insurance coverage. Buying a policy that supports your already existing health insurance coverage will be beneficial in terms of premium and features.

  7. Price and Sum Assured: Remember that any type of insurance should be rich in features as well as affordable. Compare covers based on their price after you select the required features. Also, take a look at the amount of sum assured offered under the plan.

  8. Sub-limits: It is important to understand if the policy has a clause of sub-limits. There could be separate limitations on tests and surgery. Thus, read the policy document for any sub-limit when purchasing a critical illness cover.

  9. Renewal age: Usually, a critical illness cover is active for 15-20 years depending upon the tenure of the policy. Still, buying a policy with a higher renewal age will be helpful.

  10. Waiting period: A critical illness policy does not kick-start as soon as you buy the coverage. These covers usually have a waiting period. Select a cover with a minimum waiting period.

Also, read: Health Insurance for COVID-19

The Bottom Line

Financially securing your future for  the worst possible situation is the key when buying a critical illness cover. Be prepared for the worst and face the best.

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