The Insurance Times March 2023

Things To Know Before Choosing A Critical Illness Insurance

When faced with a critical illness, the last thing you want to worry about is money. This is why critical illness insurance can be such a valuable asset. This type of insurance policy pays out a lump sum of money if you are diagnosed with a critical illness. However, before you purchase a policy, there are some things that you should know. This blog post will discuss the basics of critical illness insurance policies and what you need to know before purchasing one.

Let’s get started.

What is a Critical Insurance Policy?

A critical illness insurance policy is a type of health insurance that covers the costs of medical treatment for severe illnesses and conditions. Critical illness insurance can help cover costs like hospital stays, surgeries, and medications. Critical Illness Insurance can be an essential safety net for families who might not otherwise be able to afford the costs of critical illnesses. Therefore, you must buy one critical illness insurance policy.

Things you Must Know Before Purchase

Mentioned below are these few important things that you must know:

  1. Check how the plan works

Critical illness insurance policies cover you for a lump sum benefit if you’re diagnosed with a critical illness. Most critical illness plans will have a ‘definitions’ section that outlines what conditions are covered, but it’s important to check that the plan covers the most relevant illnesses.

  1. Check the waiting period

Most critical illness plans have a waiting period, which is usually 30, 60, or 90 days from when the policy starts. This means that your critical illness insurance won’t pay out if you’re diagnosed with an illness during this time.

  1. Check whether you can make claims for partial benefits

Some critical illness plans will pay out a partial benefit if you’re diagnosed with a less serious form of the critical illness covered by the policy. For example, suppose you have cancer and your critical illness insurance policy covers cancer. In that case, you may be able to claim a partial benefit if you’re diagnosed with a less severe form of cancer. This can be helpful if you need to make a claim but don’t want to deplete your entire benefit amount.

  1. Consider Exclusions

No critical illness insurance policy is complete without a list of critical illnesses that are not included in the plan. Be sure to check if your critical illness is excluded from the policy.

  1. Premium

The critical illness insurance premium is the price charged by the insurance company for providing coverage. This cost is typically a monthly or annual fee but may be paid as a lump sum. The premium will depend on various factors, including the insurer, policy type, and coverage amount.

  1. Sub Limits

It is important to check for critical illness insurance policies with a sub-limit. This means that the policy will not cover the entire cost of critical care. Make sure to understand what is and is not covered under your policy.


The Bottom Line

When choosing a critical illness insurance policy, it’s important to do your research and compare policies from different insurers. Make sure you understand the terms and conditions of the policy, and ask plenty of questions before making a decision. This way, you can be sure you’re getting the coverage you need at a price you can afford.

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