Factors to Consider While Comparing Critical Illness Insurance Plan

Everybody is scared of critical illnesses, especially people who have lost their loved one(s) to them. If a critical illness run in your family, then is important to buy a critical illness insurance plan. It safeguards your finances from life-threatening illnesses, as the specialized treatment required for these diseases is expensive.

Even if you have a comprehensive health insurance plan, the insurance coverage will be limited, as the full expense of the critical illness treatment won’t be covered. There can also be a cap on medical expenses, intensive care unit expenses or prosthetic expenses. Hence, you need to take certain precautions so that the expenses incurred in the treatment don’t burn a hole in your pocket.  

Critical Illness and Its Repercussions on Your Finances

Critical illness not only indicates a decline in the health but also leads to a decline in finances. It can lead to partial or total disability and/or a drastic change in your lifestyle. A critical illness insurance plan is a smart choice to protect yourself against any possibility that can lead to a financial load.

Points to Factor in While Finalizing a Critical Insurance Plan

Before finalizing an insurance plan, keep a note of the following points

The list of Covered Illnesses

If certain critical illnesses run in your family, then make sure all those illnesses are covered by your insurance plan. Only then will your insurance plan give you an extra edge over all the potential illnesses. After all, a good insurance plan should fulfill all your insurance expectations.

The Amount Assured

This is the most important point when it comes to finalizing a critical illness insurance plan. The amount insured must be adequate to fulfill the financial needs of your family if the illness results in your death or partially/totally disability.

The Coverage Size

The ideal coverage is something only you can decide as it depends on the critical illness you have inherited. If you know the benefits that are being offered and how they will help you in the hour of need, it will become super easy to decide whether the coverage amount is right for you or not.

The Claim Procedure

Ideally, the claim procedure must be hassle-free and smooth. It must not involve any unnecessary paperwork. When you need it, the procedure should be able to provide quick claim settlement for your convenience.

The Claim Payment History

When deciding on a plan, considering the Claim Settlement Ratio of your preferred insurance provider is very important. It gives you an idea of the chances of your claim’s approval or rejection. The better the claim payment history of your insurance provider is, the better the chances of your claim’s approval are.

Maximum Renewability

Some insurance plans offer renewability until the age of 50. Ideally, you should go for a plan that specifically offers lifelong renewability so that you can get the most out of your insurance plan.

Age

Elderly individuals must go for larger insurance covers. Since they are more vulnerable to such illnesses, the basic health plans catering to them are expensive and come with a lower sum-insured. In addition, these plans come with a strict set of terms like higher co-payment and sub-limits.

Policy Duration and Amount Insured

These factors are of prominence when it comes to deciding or rejecting an insurance plan. If the amount insured is not sufficient, there is no point in buying a critical insurance plan in the first place.

Waiting Period and Survival Clauses

As per the survival clause, the insured person must survive for a particular time-period after the diagnosis to register a claim. Generally, it is 30 days, but it can vary insurance provider per insurance provider.

Waiting period is defined as a specific duration (generally 90 days) from the start of the plan. During the waiting period, critical illnesses are not covered. The exact waiting period can vary from insurer to insurer.

Sub-limits

Few insurance providers place a cap on the insured amount that can be claimed for certain illnesses.

Claims

Carefully understand the claim process and double check the Claim Settlement Ratio of the insurance provider so that you enjoy a hassle-free service in future.

In case you are wondering which plan to buy, you can check out insurance plans offered by HDFC ERGO Health (Formerly Known as Apollo Munich) health insurance. It offers a wide range of insurance plans.

In a Nutshell

Critical illness plans offer fixed benefits. Insured individuals get the full amount insured regardless of the treatment or hospitalization expenses. Keep in mind that the precise details vary from policy to policy. For instance, a majority of plans come with a survival period clause; that means the insured person must survive for a minimum of 30 days after his/her diagnosis to register the claim for critical illness. However, there are a few policies do not come with this clause.

The insurance coverage varies as well. Some insurers cover partial or total disability and accidental death while some don't.

Before zeroing down on an insurance plan, carefully evaluate, analyze and compare a few plans to make sure that you select the best one.

Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.