Critical illness insurance in a nutshell


You must have heard about the numerous benefits of having a health insurance plan. As life is unpredictable, therefore people must keep themselves prepared for the worst. Health issues can derail your happy life anytime. The more serious is the illness, the more significantis the impact on your life. To deal with such situations in life, we need something more than just a health insurance plan. In such cases, we need critical health insurance policies, as the regular policies prove to be insufficient in providing the much-needed coverage. Before we get into how to buy a critical illness insurance plan, let us help you know about the meaning of it.

What is a critical illness insurance policy?

Diseases are of various categories; some can be mild while some can be life-threatening. When you suffer from health conditions like viral fever or malaria, you know that the cost of treatment won’t make a hole in your wallet. But when we talk about diseases or health conditions like cancer, kidney failure, tumor, paralysis, or heart attack, we know that life can suddenly turn upside down. The cost of treatment involved in such cases can be sky-high. If you do not have enough bank balance, it can be challenging for you to deal with the finances. This is where the role of critical illness insurance policies kicks in. The coverage amount you get with this kind of insurance policy is much higher when compared to the regular ones. These policies cover most of the critical illnesses.

Key features of critical illness insurance policy

  • What kind of health conditions or diseases do they cover? Most of the insurance companies in India include 8 to 36 types of critical illnesses in their critical illness insurance policy. Major organ transplant, cancer, paralysis, heart attack, coronary artery bypass surgery, tumor, aorta surgery, kidney failure, multiple sclerosis, etc. are some of the conditions covered by this kind of policy. Before you buy a critical illness insurance plan, you must make sure that it covers the major diseases. It would be better to keep your family’s medical history in mind at the time of buying a policy.
  • How much cover can you get? The coverage amount you get from this kind of insurance policy is usually in lacs. In the treatment of diseases like cancer and kidney failure, you would need at least 10 to 15 lacs (INR). For a middle-class family, to arrange such a huge amount can be a significant challenge. Rather than depending on anyone or breaking your existing investments, it is better to get yourself covered by purchasing a critical health insurance plan. You should opt for a policy that offers at least 15 lacs (INR) as the coverage amount. From surgery to rehabilitation, the policy would cover almost everything.
  • What other benefits do I get? When the breadwinner of a family falls seriously ill, and he/he is unable to carry on with his/her duties, the flow of income stops all of a sudden. As a result, it gets too difficult for the family members to meet with the cost of treatment. In fact, they might struggle with their daily expenses also. In such cases, a critical illness insurance plan can prove to be a savior. Most of the critical illness insurance plans provide a fixed amount for certain months, which one can use for their day-to-day expenses. The policyholder also gets a lump-sum payment for his/her treatment. Once the insurer releases the amount, it is up to the policyholder and his/her family member to decide how to utilize the amount.

How to buy a critical illness health insurance policy?

When you buy a critical illness health insurance plan, there are a few things you should take into account. First of all, you must make sure the sum insured the policy is offering is at least four times of your annual income. For example, if your annual income is 6 lacs (INR), you should opt for a sum insured of at least 24 lacs (INR). Secondly, take a look at the waiting period and make sure it is not more than 36 months. A lot can happen in three years, and hence it is better to think about your near future at the time of buying a policy.

Thirdly, having a policy that offers comprehensive coverage can prove to be more beneficial for you. Such kind of policy covers a wide range of critical illnesses, which means you don’t have to worry a lot about the list of exclusions. So, keep these things in mind and go for the best critical illness insurance policy for yourself and your family members. It is usually better to purchase insurance policies online these days. You get the best deals and offers to choose from.

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