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Oct 4, 2022

Critical Illness Health Insurance Policy: How Does It Work & Benefits

You must have surely heard that health is the biggest wealth you can have. The COVID-19 pandemic did reinstate the importance of having good health in the long run. However, critical illnesses are soaring high each year. Other than causing health issues, critical ailments can also be financially draining. Fortunately, health insurance plans are available that can be used to safeguard your finances and seek quality medical treatments specifically for critical ailments. Here’s all you need to know about critical illness plans and how they work.

What is a Critical Illness Policy?

Unlike standard health insurance plans that provide coverage for ailments that can be treated, critical illness policies cover illnesses that when unattended on time, can be fatal. Cancers of different types, renal diseases, cardiovascular diseases, liver cirrhosis, and lung diseases are some examples of critical ailments that are covered under critical illness insurance.

How Does a Critical Illness Insurance Policy Work?

Critical illness plans provide financial compensation in the event you are diagnosed with a specified illness as mentioned in your policy terms. The insurance company pays a lumpsum compensation on the diagnosis of the ailment and does not wait to reimburse the actual treatment costs. This way, you can use the lump sum payout to pay for preliminary treatments, operations, and even post-treatment expenses as per your discretion. For instance, Mr. Sharma buys a critical illness plan with ₹20 lakh coverage. A few months later when he is diagnosed with cancer, the insurance company pays the entire amount of ₹20 lakhs which can be used for tests and other treatment costs. Thus, a critical illness policy can help for the entire treatment, right from pre-treatment through post-treatment expenses.

What is the Advantage of Buying a Critical Illness Insurance Plan?

The following are the advantages of choosing a critical illness policy:
  • Financial Cover

A critical illness policy pays a fixed sum on the diagnosis of any of the critical ailments as mentioned in your policy terms. This amount can be used to manage medical expenses and other treatment costs that can quickly become a financial burden. *
  • Coverage for Various Illnesses

A critical illness plan mentions the specific ailments that are covered within its scope. Thus, you need not worry about your financial health in case of any of those specified illnesses. *
  • Safety Net for Loss of Income

Since a critical illness policy provides a lumpsum payout on diagnosis, there is a safety net for any loss of income. You need not panic for those times when complete bed rest is advised and which leads to a limitation in your income earning capabilities. *
  • Complement Your Health Insurance Coverage

Health insurance is a necessity in today’s day and age, and a critical illness policy complements your standard health cover that protects against medical treatment costs. A critical illness plan in combination with your standard health cover provides all-around insurance coverage that helps not just manage medical costs, but also other non-medical expenses. * *Standard T&C Apply Since critical illnesses are becoming more prevalent in the country, having a health plan specifically dedicated to tackling the steep treatment costs helps. In determining which policy is right, you can make use of a health insurance premium calculator. This free tool helps in determining the premium based on the features that you opt for and also aids in comparing several policies head-to-head.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.          

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