5 Things to Know Before Buying A Critical Illness Plan
Unforeseen circumstances can hit us any time. And it is always beneficial that you and your loved ones are protected financially. Although one hears about various plans in the market for critical illnesses, there is always a tiny doubt on how to decide which critical illness plan to buy. We will do exactly that in this article. Let us take a look at the basics and then the factors to consider.
What is a critical illness?
Ailments that can damage a patient’s body permanently or semi-permanently, forcing them to be financially, psychologically, and physically weak for the rest of their lives are called critical illness.
What are the critical illnesses covered?
The critical illnesses covered under any policy differ from insurer to insurer. The illnesses covered mainly include cancer and heart attacks. Nowadays, insurance companies have started providing covers for varied diseases.
Who should buy critical illness cover? Why?
Critical illness insurances are suitable for every working individual. You may face any unprecedented circumstances in life and policy helps you recover from financial and emotional stress. The critical illness policies help you take care of yourself and your loved ones in tumultuous times.
Points to be considered while buying Critical Illness Insurance:
- Diseases covered by the policy
As types of diseases covered vary from company to company, it is advisable to carry a self-assessment to determine a plan suitable to your health-care requirements. Carefully analyse your family history, medical history, and your lifestyle to get an idea about the type of illnesses to which you might be unsafe.
- Acknowledge your present financial situation
If you have the substantial financial strength to tackle an unforeseen medical issue, you can opt for less coverage from your critical illness insurance. However, you must bear in mind that health care costs are rising at an unusual rate, hence solely depending on savings will irreversibly hurt your finances.
- Pick sufficient cover size
You should contemplate the cost of the specific illness for which you are purchasing the cover, to zero-in on the best cover size. For example, heart and cancer-related ailments are rapidly increasing these days. Though the treatments of these illnesses are available, they tend to be extremely expensive. A normal health insurance policy cannot aid in meeting the cost of the treatment. Hence, choose a health insurance plan that gives sufficient coverage for the treatment of such critical illnesses.
- Exclusions in the policy
It is also essential to understand what is not covered under your critical illness insurance policy. After the policy is taken, there is a waiting period during which no claims can be made. This waiting period varies from insurer to insurer, so it is suggested that a comparative study be done for the same.
- Rider vs Standalone
A critical insurance policy can be combined as a rider or add-on to your existing insurance policy or as a standalone commodity. A standalone critical illness plan includes specific critical illnesses. It provides lump sum amount upon diagnosis of different critical illness.
While buying the critical illness policy, do not consider price as the individual criteria to decide the insurance plan. You can consider factors like the option of getting term insurance with critical illness policy, performance of the insurance company, claim settlement ratio, number of illnesses covered, extra benefits, etc.