Critical Illness Insurance Overview
Jul 21, 2020

An Overview of Critical Illness Insurance Plans

Have you heard about insurance plans covering specific illnesses? Do you know how this differs from an individual health insurance policy? Will a Critical Illness cover be beneficial for you? This article would answer the above questions and help you choose the best critical illness policy for yourself.

Critical Illness covers are aimed at reducing your financial burden during the treatment of major illnesses. Unlike other health insurance plans, a critical Illness policy provides disbursement of the complete sum insured amount on the first diagnosis of the listed critical illnesses. Since it does not involve any deductions, it makes the claim disbursement process transparent and simple. This is the first major advantage of a Critical Illness Insurance policy. The insured can utilize this amount for treatment of the ailment, lifestyle changes, donor expenses or a planned treatment outside India etc.

The ailments covered under these plans generally include Heart Attacks, Major Organ Transplants, and Cancer etc. The number of ailments covered in a plan can range from 8 to 15. These are listed by the insurer and vary for each insurance provider. You have to select a plan which is suitable in terms of the type of ailments covered. Though it is difficult to foresee certain health threats you may face, your age and family medical history can help you understand the ailments you might be susceptible to.

Critical Illness insurance also offers a wide range of Sum Insured options. The Sum Insured determines the maximum liability of an insurance company in an event of a claim. These options are available from 1 Lakh to 50 Lakhs but could be restricted by the insurance provider if the age of the insured is above 45 Years. The sum insured opted and your age are the two factors which determine the premium charged.

It should be noted that a critical illness policy come with two important conditions:

  • First, a waiting period is applicable to the policy. This means an insured cannot claim under the policy for the specified number of days from the date of commencement of the insurance. The waiting period is generally between 28 to 30 days and depends on the plan provided by the insurance company.
  • Second, the claims are payable in the policy only after completion of a predefined survival period. This period would range from 28 to 30 days and varies for different health insurance providers. This means a claim is payable only of the member survives for the defined survival period after the first diagnosis of the ailment.

Another important factor to be considered at the time of buying the best Critical Illness Insurance Policy is the Claim Settlement ability and processing procedure of the insurance company. This is important as the claim amount in these policies are paid during the ongoing treatment and the disbursement is made in full. You can also look into types of medical insurance opt for plans that would cover yourself and your family members under a single policy. These are known as Floater policies and are a more economical option when compared to an Individual Critical Illness policy.

Keeping in mind the rising medical expenses for treatment of Critical Illnesses, it is advisable to additionally cover yourself and your family for such ailments. The disbursement of the complete sum insured amount will definitely help when you need it the most. Find the best critical illness insurance policy in India on the Bajaj Allianz website.

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