Health care and treatment costs are rising exponentially in India. Lifestyle diseases like Cancer, etc. are more prevalent in people of all ages. In case you are financially well-off, it’s not something that would bother you as you would have enough money to take care of high medical costs associated with the treatment of these lifestyle diseases. But, there are people who are not so well-off and they need to plan in advance to avoid such contingencies ahead in life.

However, before starting with any sort of planning, it’s important to know various options available in the market. While most of the people know about health policies, they are still unaware of the fact that there is something known as Critical Illness Policy also available in the insurance market.

What Is A Critical Illness Plan?

Critical illness insurance plan is a health plan specifically designed to cover major critical illnesses such as cancer, heart attack, renal failure, etc. One of the best features of this plan is that you’ll receive the claim amount the moment you’re diagnosed with any one of the critical illnesses (listed in the policy document).

A critical illness plan can be bought by any individual who belongs to an age bracket of 18 – 65 years. However, there will be a pre-policy medical screening test conducted for individuals above 45 years of age. Another great feature of this plan is that it can cover all your family members, including your kids who are above the age of 6 years.

Points to Consider Before Buying Critical Illness Cover

Here are some factors that will help you zeroing-on the best critical illness plan suiting your individual needs:

1. Standalone or Add-on:

You can either opt for a term plan with a critical illness rider or a critical illness insurance plan on its own. Going for a term plan with critical illness add-on will not only provide you with a life cover but will also cover you against major critical illnesses.

On the other hand, you can consider buying a stand-alone cover if you already have a life insurance policy but are looking forward to strengthen it with the additional benefit of critical illness insurance.

2. Types Of Critical Illnesses Covered In The Plan

It’s a must to go through the list of critical illnesses covered under a plan as it may vary depending upon the insurer you choose. Obviously, it’s always better to go for a plan that covers most of the diseases.

Here, it’s important to understand that the longer the list of covered illnesses will be, the costlier the plan is going to get (due to higher premiums).

3. Take Into Account Your Medical History And Current Medical Condition

Your medical history and current health conditions are major factors to take into account while looking for a critical illness insurance plan. Nonetheless, the insurance provider is going to evaluate your health conditions before selling the policy. And, it’s going to affect the premium rates and the coverage you are going to get.

It’s ideal to purchase a policy when you are in a healthy state as it will ensure you get a comprehensive cover at low premiums.

4. Evaluate Your Current Financial Situation

If you don’t have any debt to pay off, you can also do with a low level of critical illness plan. However, if you have to take care of long-term debts such as a mortgage, etc., it would do well for you to get a higher coverage. Doing so will ensure that you have enough amount to pay-off such debts even if you wouldn’t be working any longer.

5. Consider Your Family’s Situation

Whether you are young and single, or have young dependents to take care of, it’s better to go for combined life insurance policy and critical illness plan with a long tenure. It will help you ensure your family’s financial stability even when you are not around. Also, you can choose health insurance for parents depending on your priorities and requirements.

In case you are at your retirement age, with most of your high-end debts paid off and and your kids already finished with their college; go for a stand-alone critical illness policy specifically designed to meet the treatment costs of a critical illness.

6. Limits on the sum insured

Although, critical illness insurance plan is designed to manage your finances in the need of hour, there are some illnesses plans that have sub-limits. For instance, if you have opted for a sum insured of Rs 10 lakhs, there are chances that it will come with a limit for hospitalization costs, medical tests and surgical costs.

There are also some critical illness insurance plans that have a condition to wait for medical & hospital bills to release the claim amount. Therefore, it’s recommended to opt for a plan that will provide you with a lump sum amount on the diagnosis itself.

7. Renewal limits:

There are certain insurance plans that come with a limit for renewal and the plan can’t be renewed once reached that prescribed limit. Therefore, look for a critical illness insurance plan which offers you coverage for a longer duration.

Conclusion:

In the end, make sure to take a careful look at the plan details before zeroing-in on a critical illness insurance plan. Also, make it a point to read through the list of exclusions mentioned in the policy document.

You can also consult your family doctor to get a better understanding of different medical terms used in the document. Submit a proper declaration about your current and past health conditions while applying for a CI plan. Most importantly, start practising a healthy lifestyle and let the critical illness plan take care of your financial woes in case a medical emergency occurs.