Critical illness health insurance is a cover that provides coverage for expenses related to a critical illness. In India, several insurance companies offer critical illness policies. It typically covers illnesses such as cancer, heart attack, stroke, kidney failure, and major organ transplants.
Some Important Features of Critical Health Insurance Policies in India Include:
- Coverage for a specific list of critical illnesses: Most critical illness policies cover a predefined list of illnesses, which can vary from insurer to insurer. It is important to carefully review the list of covered illnesses before purchasing a policy.
- Lump sum payment: Unlike traditional health insurance policy, which typically reimburse expenses incurred due to a medical condition, this one provides a lump sum payment upon diagnosis of a covered critical illness. This lump sum can be used to cover medical expenses, as well as other expenses that may arise due to the illness.
- Waiting period: The policy typically has a waiting period of 30-90 days before coverage begins. This means that if you are diagnosed with a covered critical illness within the waiting period, you will not be eligible for coverage.
- Renewability: Most critical illness policies are renewable, which means that you can continue to renew your policy each year. However, some policies may have a maximum age limit for renewal.
- Premiums: The premium for critical illness insurance will depend on factors such as your age, medical history, and coverage amount. It is important to compare policies from multiple insurers and choose a policy that provides adequate coverage at an affordable premium.
Types of Critical Illness Policy
There are Two Types of Critical Illness Insurance Policies Available in India:
- Standalone Critical Illness Insurance Policy: This provides coverage only for critical illnesses and does not cover any other medical expenses. The policy pays out a lump sum benefit if the policyholder is diagnosed with any of the covered critical illnesses during the policy term.
- Critical Illness Rider: This policy is an add-on to a base health insurance policy. The critical illness rider provides coverage for critical illnesses on top of regular health insurance coverage. The policyholder pays an additional premium for the rider, which provides a lump sum benefit in case the policyholder is diagnosed with any of the covered critical illnesses during the policy term.
How to Understand Which Life and Critical Illness Cover Is Right for You?
Choosing the right life and critical illness cover can be a daunting task. Here are some factors that you should consider before selecting a plan:
- Coverage: Check the illnesses that the plan covers. Most critical illness insurance policies cover diseases such as cancer, heart attack, and stroke, but some may offer coverage for additional illnesses. Look for a plan that covers the illnesses that are most likely to affect you based on your medical history and family medical history.
- Cost: The policy that you select must fit your budget. The premiums for these policies can vary widely, depending on the coverage offered and your age, medical history, and lifestyle. You should balance the cost of the policy against the benefits provided.
- Benefits: Check the benefits provided by the policy. Some policies provide a lump-sum pay-out on the diagnosis of a critical illness, while others may provide benefits in the form of monthly payments. Some policies also offer additional benefits such as coverage for hospitalisation expenses, pre and post-hospitalisation expenses, and so on.
- Exclusions: Look for exclusions in the policy. Most policies have exclusions such as pre-existing conditions, illnesses caused due to substance abuse, and self-inflicted injuries. It is essential to understand the exclusions before purchasing the policy.
- Reputation: Before you purchase a policy, research about the reputation of that insurance company. Check online reviews, ratings, and feedback from other policyholders to ensure that the company is reliable and has a good track record of settling claims.
- Customer service: Look into the customer service review of the company. It is important to choose a company that has a good customer service record and is responsive to its customers’ needs.
By considering these factors, you can make an informed decision and select the health insurance policy that is right for you. It will help you take care of your financial constraints in case of an emergency medical requirement. Connect with the experts at Niva Bupa to know more about the different types of critical health illness and which one is suitable for you.