Why Buy Critical Illness Insurance Plan

Why Buy Critical Illness Insurance Plan

Critical illness cover is also popular by the name of critical illness insurance  that offers a tax-free lump sum amount in the case where you are diagnosed with any critical diseases.Your critical illness insurance pays out if you get one of the critical illness or injuries mentioned in the policy. Now not all conditions are included. The coverage will also specify how extreme the situation needs to be for being eligible for coverage. Examples of  critical disease are- heart attack,  stroke and much more

Factors to keep in mind while shopping for critical illness cover

List of critical illnesses not covered under your policy: It’s essential to recognise the illnesses covered in your coverage, further, it’s far important to take a notice of factors no longer included in the policy.

Understand the technique of submitting the claim:  claim is critical for any insurance coverage. Sois the case with a critical illness insurance policy. Accordingly,  check properly in advance about the formalities and documents you would be required to submit a claim.

Advantages you would get at the time of renewal: before buying any critical illness insurance plan, make it a factor to discover approximately the renewal benefits you will get from your insurer for the year you haven’t filed any claim.

A few other elements that one should search for before buying critical illness cover are  network hospitals, claim settlement history among others. To understand about critical  illness insurance pros and cons, it is important to understand the coverage criteria, exclusions and different elements of the plan document.

Who must buy?

The money you get from a  critical illness coverage may be used to pay off a loan, to pay medical bills, home adjustments or for something else.

Critical illness cover may be a good choice for you, if:

– You don’t have financial savings to help you over in case you had been severely ill

– You don’t have an excellent employee health coverage to cover a period of day off work because of sickness.

Ways to choose sum Assured

To decide sum assured you must keep in mind the important elements like expenses, recurring charges and monetary liabilities.

Additionally, remember current covers consisting of mediclaim or personal  accident and disability coverage.

Stand-alone or rider?

You either can purchase a critical illness plan as a standalone coverage, or you may integrate essential illness riders along with your existing medical health insurance plans. The coverage terms and conditions under each of the options are more or less identical. The choice among a standalone policy and a rider relies upon on your requirement.

Generally, a standalone policy gives extra flexibility in choosing the sum insured and larger covers as compared to riders. The limitation on the sum insured under a rider is normally the same as the basic policy. Therefore, if you have a  health plan or time period coverage of Rs 5 lakh and buy a critical illness rider with it, it is unlikely that the insurer will provide you a sum insured of more than Rs 5 lakh for the upload on cover.

There might be a difference in pricing as a standalone critical illness policy will cost greater because it comes with the option of choosing a higher sum insured.


Leave a Reply