You might have read a lot about the importance of health insurance. Be it concerned family members, friends, or colleagues, everyone encourages purchasing a comprehensive health insurance plan. Nowadays, apart from the basic health plan, insurers are also offering critical illness insurance plans. Keeping the rising medical costs, inflation, and frequency at which previously uncommon illnesses such as cancer are becoming common, purchasing a critical illness insurance plan in addition to your health insurance plan seems like a good idea.
Read ahead to know more about the critical illness insurance plan so that you are in a better position to make an informed decision regarding your health insurance portfolio.
What is a critical illness cover?
A critical illness cover is a separate plan that you can purchase to insure yourself against specific diseases (example – cancer). Usually, there is a list of illnesses that are covered under a critical illness policy. You pay a premium in exchange for a sum assured in case you are diagnosed with an illness listed in your critical illness policy.
How is it different from a basic health insurance policy?
A critical illness plan provides a lump sum benefit upon diagnosis. A health insurance plan looks after the treatment cost. As a critical illness can render oneself bedridden for a long time, having the backup of a lump sum can provide the essential support required to sustain the recovery phase. A health insurance plan will only cater to the treatment cost but not offer support after that as it does not offer a huge lump sum amount compared to a critical illness cover.
Which are the diseases covered?
Different insurers might have different diseases that are covered under their critical illness policy. Around 8 to 20 illnesses are covered. Major diseases covered are as follows:
- Organ transplant
- Complete blindness
- Heart valve replacement
What is the claim process?
In order to raise a claim against a critical illness policy, you have to submit documents stating that you have been diagnosed with a disease covered in the policy. Usually, this needs to be done within 30 days of diagnosis. The insurance company will verify the documents, look at the terms and conditions of the policy and settle the claim (if approved). The insurance company might have a clause due to which they might not cover an illness if it occurs during the first 90-days of the policy period.
Why opt for a critical illness cover?
A critical illness takes you by surprise. It comes without any warning. That is why people are caught off guard. The treatment cost related to such illnesses is also sky-high. Not just that, the recovery time can be lengthy when it comes to a critical illness. This can be problematic for a salaried employee as well as a sole proprietorship business owner. Even after recovery, the person will take time to come to full strength.
How much should be the sum assured?
You must look at your age, your family responsibilities, your liabilities and your monthly income while determining the sum assured of the policy. People generally follow this rule: the amount insured should be double of your annual income so that it makes for a sizeable amount in case of an illness. Also, you should look into your loans and other liabilities while deciding the extent of your cover. As is with a health insurance plan, purchasing a critical illness policy at an early age is a good option.
Here’s hoping that you never face a critical illness but if you do, make sure to have an insurance policy in place to support you during the crisis.
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