Myths and Facts about Critical Illness Insurance

People have various misconceptions about critical illness insurance plans. That is because they don’t read the fine print of their plan and end up making wrongful assumptions. It is important to read the fine print as it helps you to understand what is covered and what isn’t covered by the plan. Myths and assumptions can lead to the rejection of your claim.

You know what’s worse than not having a critical insurance cover? It is the rejection of your claim. When your claim gets rejected, the medical treatment expense can wash off your savings in a single go; even if you had spent a lot of money while buying the plan.sIn fact, burnt money would have more value than that.

If you cannot use your insurance when you need it the most, what is the point of getting insurance in the first place?

In this article, we will discuss some myths and facts related to critical illness insurance policy.

Instead of believing hearsay, you should trust credible sources of information. Here are 8 most prevalent myths clarified for your convenience.

1. Myth-Critical illness insurance provides coverage for disability.

Fact- The objective behind disability coverage is to provide compensation for the loss of income because of the disability. On the other hand, critical illness insurance offers a lump sum payment in case the insured is diagnosed with a critical illness, such as cancer, immunological disease etc. The advantage is that the insured has full liberty to decide how to use this amount. An insured can pay for his/her treatment and use a portion of the funds to look after his/her family as well.

2. Myth- Once I buy critical illness plan, I get coverage for any critical illness.

Fact- It is crucial to understand that a critical illness plan covers only those illnesses that are stated in the fine print of the insurance plan. Hence, you must be careful while going through the fine print of the plan.

3. Myth- When diagnosed with a covered critical illness, I will surely get the claim amount.

Fact- Each critical disease has a precise definition. In case your condition doesn’t fit that definition, your claim could be rejected. It’s important to be aware of such details.

4. Myth- After buying a critical illness plan, I will have to buy life insurance due to my low survival chances.

Fact- In case you get diagnosed with cancer, your life expectancy will be more than 5 years. In case of a heart attack, more than 90 percent of people survive and recover. If you buy adequate insurance coverage, most likely, you won’t need a life insurance.

5. Myth- If my critical illness plan covers cancer, it covers all the types of cancer.

Fact- It is not true for all cases. You should be clear about the coverage offered by your critical insurance plan. Every cancer type is different and may need different insurance coverage. This is why insurance premium varies from plan to plan.

6. Myth-When diagnosed with a critical disease, I’ll get the money immediately.

Fact- Read your insurance policy carefully. After filing a claim, the speed of settlement depends on the insurance provider that you have opted for. Before buying the policy, the Claim Settlement Ratio of the insurer should also be taken into account.

7. Myth-If I’ve pre-existing medical conditions, I can’t buy critical illness insurance.

Fact- Critical illness insurance comes in all sizes. For some plans, you are supposed to undergo a medical screening. For some, no medical screening is required. If you have a pre-existing condition, you might have to pay a higher insurance premium. While you will have to spend extra money from your pocket, it shall be totally worth it when the need arises.

8. Myth-All critical illness insurance plans come with a higher insurance premium.

Fact- Not every critical insurance plan costs a bomb. Before you pull out the chequebook, always compare various health insurance plans so that you can opt for the best insurance one. If you are looking to buy a plan that covers the later stages of a critical illness, you will have to pay a higher premium for enhanced coverage.

In a Nutshell

Always clarify your assumptions and misconceptions about the coverage provided by the policy, so that there is no blind spot. Insurance experts recommended buying a critical illness insurance plan if the critical disease is hereditary. However, don’t just buy the first plan you come across. First, analyze your insurance expectations and compare all the insurance plans that draw your attention. Zero down on a plan that fulfills your insurance expectations.  

Never hesitate in buying a critical illness insurance plan. Though the premium could be on the higher side, the benefits are totally worth it.

When it comes to buying health insurance, one size doesn’t fit all. It is because insurance expectations of people are different. What works for A might not work for B.