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Dec 15, 2023

What Are the Dos and Don’ts While Buying Critical Illness Insurance?

All through our young age, we have heard the adage ‘health is wealth’ emphasised over and over. We try to implement it by following a rich and balanced diet, exercising to keep our body healthy, incorporating good habits, and yet the possibility of illness affecting us will go up as our age increases. This can either be due to our lifestyle habits or due to hereditary conditions. Since the human body is not immune to ailments, it is a smart choice to ensure a safety net for certain types of ailments. This safety net can be in the form of a health insurance cover that not only ensures financial coverage for treatments, but also makes sure that the right treatment can be sought when the time comes. There are different types of health insurance plans that are available. Among these different types, a critical illness plan is what stands out for the features that it provides. Here, the compensation is paid in lumpsum on the diagnosis of the ailment instead of providing for the treatment cost. This lumpsum payment helps tackle not only the treatment costs but also compensates for any loss of income during the period of treatment. Critical illness insurance does not wait for the insured to be admitted to a medical facility or complete the treatment to make the payment, but instead, pays on the diagnosis of the ailment. Moreover, the amount of compensation is defined from the beginning, which is generally the entire sum assured of your policy. Hence, these critical illness insurance plans are also called defined benefit policies. Here are some of the dos and don’ts when buying a critical illness plan:

Things to remember when buying a critical illness plan

Checking the treatments covered

Since critical illness plans are policies that are designed to cover certain specific ailments, it is essential to look for a plan that covers the ailments as per your requirements. If you have a family medical history of a specific ailment, it is essential to seek coverage for such an ailment in your critical illness cover. *

Determining the sum assured

Based on the treatment cost of specified ailments, you must opt for the sum assured in your critical illness plan. This ensures an adequate insurance cover keeping in mind the steep medical inflation and the present treatment cost. *

Familiarising the claim process

You must familiarise yourself with the insurance claim process as it can help you get to know the necessary steps when raising an insurance claim. *

Things to avoid when buying a critical illness plan

Do not avoid researching about the insurance company

The credibility of the insurance company is a determining factor before you commit to buying a particular policy. You can enquire about the insurer’s reputation on various forums and make a judgement based on customer testimonials too. In addition, make sure to read the fine print of your insurance policy before finalising the purchase.*

Do not replace your family health plan with a critical illness policy

Even if you are buying a critical illness cover, make sure to not replace the family floater policy or an individual health cover completely. As a critical illness cover only takes care of specified ailments, a family floater plan or an individual cover provides far greater coverage. *

Do not buy a policy without understanding its terms thoroughly

When buying a critical illness cover, make sure to thoroughly understand its terms related to the situation where an insurance claim shall be paid. * With these dos and don’ts of buying a critical illness plan, you can ensure that the right policy is bought, based on your requirement. In this process, you can make use of a health insurance premium calculator that not only helps determine the premium of your insurance plan but also compares various insurance policies.   * Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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