Whenever there is a discussion regarding health insurance policies, most people need to learn the difference between different policies. Most people buy a standard health insurance plan assuming all diseases are covered. However, they need to be more accurate about the impact of critical illness.
Diseases such as cancer, stroke, liver disease, kidney failure, heart attack, and much more are counted as critical illnesses. Therefore, people should buy critical illness insurance for themselves or their family members, specifically if there is a family history of such diseases. However, it does not mean people should not buy health insurance plans; instead, they should invest in an excellent critical illness plan as a top-up.
What is Critical Illness Insurance?
Critical health insurance covers life-threatening diseases and supports you financially in the event of diagnosis of such illnesses. In this insurance, you get a lump-sum amount to take care of treatment and other financial obligations. Depending on the policy’s terms and conditions, an insurer can use some portion of this amount as their monthly salary if they cannot work.
What are The Factors to Consider Before Choosing Critical Illness Insurance?
Different insurance companies in India offer critical illness health insurance plans with various perks and benefits. When you look to buy a policy, it should be focused on your needs more than anything else. Hence, here is a list of five key factors before deciding the best critical illness cover for yourself or your family.
Keep in Mind Your Increasing Age
What most of us don’t consider is our age at the time of buying any insurance. Instead, we assume we are healthy and will remain the same forever. But we forget that age increases the chances of getting critical illnesses.
Also, the treatment cost of these diseases is much higher than the normal ones. Therefore, getting yourself insured in the first place and staying vigilant and protected from uncertainties becomes necessary.
Forgetting to Check The Waiting Period
The waiting period is the time you will need to wait before you can enjoy the benefits of your critical illness insurance. This period differs from company to company and the type of policy you purchase. It could be as low as a few days to as high as a few months.
Hence, when buying critical illness health insurance, always keep the waiting period in mind. The higher the waiting period, the more you may have to pay from your pocket in case of any unforeseen situation.
Check The Claim-to-Settlement Ratio
There are some big names in the critical illness health insurance sector, and they have plans with great benefits. Moreover, you may have an insurance plan with a company that also may have an option of getting a critical illness top-up. So remember to go by something other than just the name or word of mouth.
Instead, check the insurance company’s claim-to-settlement ratio to understand your chances of getting the claim approved or vice-versa. The claim-to-settlement ratio is the number of cases the insurance company agrees as settlements to the issues they receive. The higher the percentage, the more the chances of approval.
Premium Amount on The Policy
In India, most critical illness insurance is offered at a very affordable premium, but every company is different. Hence, it is recommended to check and compare multiple plans, their coverage, and additional perks compared to the premium they are asking for.
There is no correlation between higher premiums and policy coverage. However, sometimes, you may need more than what you need from the policy despite paying more premiums. So, go for the policy with more coverage and a better premium rate.
Checking for Exclusions and Inclusions
How many of you have checked the terms and conditions or what is written beneath the * sign in your policy documents? Only a few. While purchasing a policy, we often restrict the broad things highlighted on the mediclaim policy brochure but miss the most critical part – the exclusion and inclusions.
Make it a mandate next time to read everything in detail before signing the policy document. It will save you from unnecessary disputes and confusion during claim settlement.
If you feel buying an insurance plan is a waste of time as only some get an acute disease, it is time to rethink. The world is already undergoing a lot of unforeseen issues. You don’t know how pollution and other environmental elements may impact your health in the long run. Hence, protecting yourself and your family should be your first step and buying the critical insurance plan will be climbing that step.