How to choose critical illness insurance for your health insurance policy

Posted by amrina alshaikh on January 30th, 2020

Life is uncertain and we never know about a critical illness that may come up in the future. Heredity and age may bring in some major illnesses, even when you are maintaining a proper diet and exercising regularly. Over 62% of the bankruptcies recorded worldwide are due to some medical expenses. With such a scenario, it is advisable to have a health insurance plan. This basic policy doesn't provide sufficient coverage to critical illnesses but is perfect for regular medical care.

A critical illness insurance policy is an extra coverage or is a supplement to your basic health insurance plan. They offer a lump sum amount of money to the person insured, if upon proper diagnosis, he/she is found to have a life-threatening condition. Treatment of critical illnesses such as the first heart attack, cancer, coronary artery bypass surgery, primary pulmonary hypertension, major organ transplant, stroke, and kidney failure, etc, comes under this coverage. Generally, 8 to 20 major critical illnesses are covered. These treatments are more costly than those for regular diseases.

Diseases that are excluded from the coverage include illnesses due to genetic disorders, illnesses caused due to smoking, alcohol consumption, tobacco usage or drug abuse. Intentional self-injury and attempt to suicide are excluded. Illness due to HIV and any pre-existing disease that was not mentioned while purchasing the cover gets excluded.

Critical illness insurance is beneficial as it covers the cost of health care and treatment, provides recovery aids, pays off debts and forms a temporary source of income in case of loss in income for not being able to work. Some insurance companies offer special health insurance plans for women and senior citizens.

While choosing ideal critical illness insurance, you need to keep some points in mind. Prepare an approximate budget of the treatment by discussing with experienced people, check whether the illness is covered under the policy and check the waiting period of the policy. Generally, this period ranges from 3 months to 4 years, from purchasing the policy to getting benefits from it. It is suggested to buy the cover at a younger stage.

A critical health insurance policy can be purchased as a stand-alone policy or as a rider with a basic health insurance policy. The terms and conditions are almost similar. The cost and flexibility in choosing the sum insured are higher for a stand-alone policy. Some companies offer lifelong renewability while others cease at 50 years of age. Such a plan can be purchased from a non-life insurance company, a standalone health insurance company or a life insurance company.

The critical illness plan does not reimburse hospitalization costs, as it is a defined benefit plan. For this, you need to purchase a mediclaim policy. Parents, children, spouses, siblings and members having direct relations with the insured can be covered depending on the terms and conditions of the policy provided by the insurer.

Before choosing a health insurance policy, you must have a clear knowledge of your medical history. Critical illness insurance policies are important for everyone.