Critical or catastrophic illness insurance plans are suitable for people predisposed to certain severe diseases. Still, they really should be bought by anyone who wishes to stay extra-prepared for unexpected illnesses.
You might have been fortunate enough never even to have heard of critical illness covers. Still, it is one of the ways to cover the majority of your expenses for debilitating diseases or corrective surgeries one might need to cure these diseases.
The price of such covers won’t break the bank when you buy them and protect your savings, in the case of serious illnesses. Most health covers won’t be enough for the prolonged treatments required for such diseases.
If you don’t already have insurance, given the current circumstances, you might want to reconsider your stance on getting an adequate health cover. And while you’re looking at the best family health insurance plans in India, why not investigate a critical illness policy that suits you, as well.
How is a critical insurance plan different from a regular health cover?
Most of us often confuse one of these with the other, but this could not be further from the truth.
The payout from most health insurance plans kicks in once the hospital bills are submitted to the insurer. Many insurers even offer the freedom of going cashless at multiple hospitals on their network, if you’re covered. A health cover is extensive, but the payout may not be enough to reimburse the exorbitant charges of critical illness treatments.
Contrary to a health cover, a critical illness plan might be able to cover for up to 30 to 40 diseases financially. The payout, in this case, is offered upon diagnosis itself. However, waiting periods may vary depending upon the severity of the case.
Financial institutes might also offer you the option to include a critical illness add-on with your existing health insurance policy.
What should you expect when you buy a suitable critical illness cover?
A good cover should be enough to compensate for your hospitalization expenses. Critical illness coverage is provided for diseases such as organ failure, paralysis, most types of cancers, heart disorders, and so on.
There is also an assurance of getting a lump-sum payout, and the claim is processed quickly. The payout might help some people to even get back on their feet if they have lost their job due to their illness.
Some exceptions for the coverage of policy include complications and death arising from congenital disorders, smoking and drinking, and cosmetic surgeries.
What would be the possible benefits of getting one such insurance plans?
These policies are incredibly beneficial for people that are the sole providers for their households, or those that have a family history of critical diseases, or people working in highly stressful environments or with occupational hazards, or people over the age of 40.
There are some added tax-saving benefits as well. Under section 80D, senior citizens can save up to INR 20,000, and up to INR 15,000 (for others).
Selecting the perfect plan for your needs made simple:
While looking for the perfect policy that suits your needs, you should consider the following points:
- The sum that has been offered should be enough for your case
- There is often a waiting period, beyond which the policy kicks in
- There is also a mandatory survival period
- Number of diseases being offered a coverage
- There must be a possibility of renewing the policy.
- Also, check the maximum age for getting a renewal
- Look up the inclusions and exclusions under your policy
Some FAQs that you might have as well:
Do you require any documents to get the insurance payout?
You need to submit an approved proposal with all the details and then ask for the sum that might be enough for you (according to your plan).
What are pre-existing illnesses?
If the insured person has been diagnosed or given medical treatment for a condition, four years (48 months) before getting a policy, then these would be considered pre-existing diseases. Coverage to these might be offered by the insurer after the waiting period is over.
Many people lose their jobs and, subsequently, a massive chunk of their income due to medical emergencies. If you are ever stuck in such a predicament, you won’t like taking the additional stress of trying to save your career while struggling to come up with ways to pay off your hospital bills, all together.
A suitable critical illness insurance plan might help you out in such a scenario. But, again, it goes without saying that before finally investing in one plan, you should look at all your options.
