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Important Factors to Consider When Choosing a Critical Illness Policy | 4038


Important Factors to Consider When Choosing a Critical Illness Policy

WhatsApp Image 2023 08 07 at 9.21.56 PM

Is your car more important than your health?

No, right?

Why then do you buy car insurance and not critical illness insurance?

Is this just because car insurance is compulsory?

A health insurance plan is even more vital because it protects you against all critical health issues.

Your health carries its impacts on almost all phases of your life. If you are healthy, you can plan for a better future.

Therefore, an insurance policy for your health is among the most powerful tools.

Also, it can be the best gift you can offer to you and your family.

What is Critical Insurance?

In general, critical insurance is a type of plan designed to pay a tax-free lump sum in case of critical illness diagnosis during the policy term.

However, a critical illness policy isn’t a substitute for your basic health insurance. It adds an extra cover to your regular mediclaim policy or insurance product. It is the best option because it can provide you with the proper coverage for any life-threatening diseases.

Why You Need Critical Insurance

Medical costs are rising at a higher pace. Getting the best treatment for critical ailments is not easy, cheap and convenient. It takes a good amount of time and money. Therefore, a comprehensive health insurance policy is the right bet.

Assume that you are the only earning member in your family. And unfortunately, you’re diagnosed with a major illness, such as cancer, strokes, etc. In that case, you would probably like to quit your job to get specialized care.

This can let you lose monthly income, and increase the expenses. In such an event, a critical illness policy can be your best friend.

I already have a health policy, so I don’t need a separate critical policy

Does this sound similar?

Many people think that they don’t need critical insurance because they already have a health policy. But, simply investing in a health policy is not sufficient for you due to the following reasons:

  • Your health plan may not cover all expenses
  • It may have a limit on doctors’ fees
  • It may have a cap on specific expenses like on medicines, intensive care.
  • Or, it may not cover the full cost of treatment.

So, your health policy may not be enough. In that case, you’ll have no option but to either break your savings, borrow money from others or pay the medical bill from your own pocket.

So, buying a critical illness policy is the best solution. It will cover your family and yourself against all medical expenses incurred on acute ailments.

The best critical illness policy includes the following benefits:

  • Coverage for medical and household expenses
  • Tax-free under Section 80D of the Income Tax Act
  • Enough funds available in an emergency, so you can concentrate more on medical treatment
  • Coverage for the overseas treatment

How to Buy a Critical Illness Policy?

Listed below are some important factors to buy the best critical illness policy. Follow these tips and you will be able to shop for a comprehensive critical illness policy.

The List of Illness Included:

It’s important to look at the list of all critical illnesses covered in your policy. In general, different insurers provide risk coverage for different critical illnesses. Go through the policy wordings, terms and conditions and understand all the exclusions in the policy.

The List of Illnesses Excluded:

Like knowing the inclusions, taking note of things not covered under your critical illness policy is equally important. As a thumb rule, read the policy details carefully and understand the exclusions of the policy.

The Right Size:

Before making any decision, it’s essential to know what the insurance company is charging. If you are aware of all the benefits offered, you can easily decide how much protection you need. Consider the factors like recurring costs, future financial liabilities and treatment costs in case of income loss.

Medical history and age are also vital to know when you decide the appropriate sum assured. Be sure the sum assured offered by the company is higher if you are aged, as you are more likely to develop chronic ailments. Moreover, have a look into accounting existing covers like a personal accident, mediclaim, and disability insurance policy.

Your Health Condition:

Your present health plays a vital role when it comes to deciding whether to buy a critical illness policy or not. A person – who smokes and lives a hectic work life – is more prone to vulnerable health problems in the future. It’s, therefore, good to choose the best critical insurance policy early so that you can’t encounter too many hassles.

Buying a Special Plan?

There are some critical illness plans that are available for special groups like senior citizens and women. Such policies are designed keeping in mind the need of these people.

To take an example, Bajaj Allianz has a women-specific plan. This plan provides coverage for ovarian cancer, cervical cancer, and breast cancer. Also, 50% sum assured is paid for the insured’s child congenital disability. Further, the policy provides bonuses for children’s education and in case of job loss.

But, these plans are slightly costly. Because, when you choose a woman-specific plan for a 30-year-old woman from Bajaj Allianz, you can avail a cover of 2 lakh.

On the other hand, if you choose to purchase a standard critical illness policy with a higher sum assured of Rs 3 lakh from Bajaj Allianz, the cost will reach Rs 900 a year.

Financial Standing

Even if you have a good financial situation and can combat any unpredictable health issues, a critical health plan will be helpful. You can go for a plan with smaller coverage. This is because health care costs are rising leaps and bounds and further inflation in the healthcare sector is inevitable.

The Complement of Health Policy

When you choose a critical illness plan, make sure it complements your health insurance policy in order to get adequate coverage at an economical price. Both plans should cover aspects of health care. This is how you can keep your health insurance portfolio secure.

Claim Procedure

Understanding the procedure of filing claim is another area of concern. This is important for any insurance product. Doing so will allow you to understand in advance about documents and formalities you would require when filing a claim.

Age Coverage

Before you make your purchase decision, it is pivotal to know till what maximum age the policy will provide coverage for critical illnesses.

Final Words

A critical illness insurance policy is extra insurance for life-threatening ailments if you have purchased comprehensive health insurance. It provides you with additional layers to your health insurance.

Thus, a critical illness policy is not less important than your car insurance. If you can buy insurance for your car, you can buy a health policy too. Consider the above factors and buy a critical insurance policy wisely to live a healthy life!


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