Critical Illness Insurance - Tips to Choose the Right Plan

A critical illness insurance policy, as the name suggests, is a health insurance plan that provides coverage against critical and life-threatening conditions such as cancer, heart attack, kidney failure, coma, third-degree burns, organ transplants etc. In this policy, the insurer pays a lump sum amount if you are diagnosed with a critical illness. You can use the money for your treatment and other medical expenses. However, you must wait until the survival period is over to get the claim amount. 

Why should a person buy a critical illness policy?

In today’s day and age, anybody can fall prey to any major diseases. These illnesses come unannounced and cause collateral damage to not just to the victim but to the family members of the victim too. The health insurance policy covers hospitalisation and other expenditures, but the expenses that arise out of major illnesses are not covered under a regular policy.

Most of the times, it is because it exceeds the sum assured limit as the cost of treatment for critical diseases is high. A critical illness insurance policy can significantly help you in this regard, and pay for expenses like medicines, consultation, bed charges and check-ups and tests. Therefore, not just a general health insurance policy, a critical illness policy is also equally important to cover us if such situations arise. 

How does a critical illness policy work?

Unlike a basic health insurance policy, a critical policy does not cover hospitalisation or post-hospitalisation expenses. The working of a critical illness policy is entirely different from a basic health insurance policy. It does not offer cashless facility or the option to reimburse expenses. It directly gives the insured a lump sum amount when the insured is diagnosed with a critical disease. 

How to select a critical illness policy cover?

It is vital that you carefully choose the critical illness policy. Insurance companies offer a wide range of plans, but you must weight your situation and pick the best plan to suit your specific requirements. Some of the factors that you must consider are:

Know the treatment expenses –

Do your research well about the approximate cost of the treatment you may incur for your condition. While doing your research, you must take into account the money you may spend on buying medicines, consultation, diet etc. and then decide the sum assured. Once you have an approximate cost in mind, you can choose the appropriate sum assured. 

Illnesses covered – 

This is a critical factor to consider. Look for an insurance company that provides you with the widest coverage against critical illnesses. Also, you must check the premium charges for the condition; some insurance companies charge a higher premium for certain conditions. If the insurer is offering the right cover and the premium is affordable, you can purchase the policy.  Critical Insurance Policy offered by IFFCOTokio covers up to 25 Critical Illnesses and Surgeries.

Waiting Period –

Every health insurance policy has a certain waiting period. It is essentially the time when the coverage is not applicable. Generally, the waiting period for most diseases lasts for about three to four months. It is paramount that you look for a policy with the least waiting period