Everything you need to know about critical illness insurance policies

Read also: Things to keep in mind while buying health insurance for family

With this type of policy, people will be able to get financial assistance when they are suffering from a critical illness. Such policies prove to be of prime value in an individual’s health insurance plan. But before choosing a critical illness insurance policy, it is better to understand all its aspects for the right decision.

What is critical illness insurance?

Among a wide range of insurance policies, critical illness insurance will provide cover to an individual for critical illnesses like cancer, heart disease, stroke and kidney failure. Such a policy can help a person cover the cost of treatment and recovery, as well as loss of income if he is unable to work.

Such a policy will also provide a mental relief that a person along with his family remains safe from such illness.

Read also: Health Insurance: Parents can insure only dependent children

People can also use critical illness cover to supplement their pre-existing health insurance policies, health insurance plans often miss out on these diseases, leaving people financially vulnerable to such diseases. People who have a high deductible health plan may consider adding critical illness insurance to cover the cost of treatment when they become ill.

Things to keep in mind before buying a critical illness policy

An insurance policy comes with immense benefits, and it is up to the insurer to find out which benefits are of utmost importance to them. Apart from the benefits, there are some aspects that people need to take care of.

Following are some considerations you should keep in mind:

Know the number and types of diseases covered in the policies: Not every critical insurance policy provides protection for the same group of illnesses and diseases. Firstly, they cover only a few diseases, and other insurance policies cover a wide range of diseases. A vital insurance policy provides cover for critical illnesses such as cancer, heart attack or stroke. Therefore, people need to carefully explore the list of diseases they are most concerned about.

For example, if a person has a family history of cancer, he can find a policy that provides coverage for the disease. Apart from critical illnesses, such policies do not provide cover for conditions like Alzheimer’s disease, Parkinson’s, deafness etc.

Amount of coverage: The amount of coverage a person needs depends on the individual’s individual circumstances. A person can opt for a policy that will cover only the cost of treatment and recovery, on the other hand, people can also opt for compensation for lost income if they are unable to work due to illness.

Clauses of Exclusions and Limitations: Each policy has its own exclusions and limitations. Hence the insurer needs to read the fine print so as to be aware of what is not covered in the policy.

-Benefits and Perks: Each policy offers different types of benefits to the insurer. Some policies have a provision for a lump sum payment to the insurer in case of diagnosis of the covered disease. Whereas, other policies provide coverage for medical expenses and lost income.

-Deductions and Co-pays: These types of policies come with deductibles and co-pays. Deductible is an amount that needs to be paid by the insurer before it can start paying health insurance. One must compare the deductibles and co-pays of various important insurances to find their best match in terms of budget and benefits.

– Premium: The premiums of the policy may also vary from company to company and from insurer to insurer. Hence, people should compare the premium amount of different policies before buying one.

conclusion

Before jumping into any kind of high premium critical insurance plan, it is always better to consult your financial advisor or health insurance agent to know all the details. It is only after analyzing the advantages and disadvantages of such policies that an individual should decide whether to opt for them or opt-out of them.