Critical illness insurance can prove to be a saviour when, often without prior warning, we are afflicted by a serious health condition. To tackle such circumstances that test our mental, emotional, and financial preparedness, prior thought and a wise investment in a good policy is the best decision we can make for ourselves and our family. Here are a few tips that will help you choose the correct plan to invest in.
What is a critical illness insurance?
Critical insurance covers pay you a lump-sum amount, free of taxes, in case you are diagnosed with any of the serious health complications within the ambit of your policy. Your policy may cover conditions such as cardiac arrest, stroke, several types of cancer, coma, multiple sclerosis, paralysis and kidney failure, to name a few.
Risk covers vary with the companies offering the policy. It is crucial to carefully consider the list of illnesses not covered in your policy before making the final decision to buy it.
Things to consider before buying a critical illness policy
Before buying critical illness insurance, it’s important to evaluate certain aspects to ensure you get the most suitable coverage. Here are the key things to consider:
- Know why you are buying your policy. A critical illness plan can be utilised in paying off debts related to medical costs, making modifications to your home, and paying off a mortgage.
- A policy will help you if you do not have enough savings to cover serious illnesses or if your employment benefit plan is not conducive towards providing you enough relief while you are sick.
Know the process of filing your claim. Learn what renewal benefits you will receive from your insurance company for the period of time when no claim is filed.
- Read the policy in detail before buying, lest you miss any exclusions or other factors within it. Check what hospital network your insurance company endorses.
- Consider factors such as costs of treatment, medicine and follow-up plans while deciding your sum insured. You have the choice of opting for either a stand-alone plan or just a rider. Stand-alone plans, although more expensive, will allow you a higher claim amount.
- Careful consideration prior to buying an insurance will ensure that when the time comes, the cover yields optimal benefits to mitigate the situation at hand.
Hence, a health insurance policy is a valuable asset to have. In times of need, it can take care of all the medical expenses at hand, so that focus is kept on treatment rather than worrying about taking care of the bills piling up.
Can critical illness insurance replace health insurance?
While critical illness insurance offers useful financial support when it comes to serious health conditions, it cannot be used to replace your regular health insurance. Health insurance covers several medical expenses, including hospital stays, doctor visits, diagnostic tests and minor illnesses or injuries, which makes it an essential part of your healthcare planning.
Critical illness insurance is not a replacement but an added boost to the regular insurance policy. It covers costs that are sometimes left out by the policies, such as travel, for treatment or home care during prolonged illness. You should consult the insurance provider and come up with a way to use both policies together to ensure that you are secured whether it is a general health issue or a severe illness that requires long-term financial support.
Conclusion
Getting a critical illness insurance policy in addition to your regular health insurance plan is a simple step that proves beneficial in the time of need. It gives you the peace of mind that comes from knowing you can cover the medical costs while focusing on recovering. By understanding the scope of coverage, waiting periods, the sum insured and the insurer’s reputation, you can make an informed decision that adds to your existing health insurance.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.