What is a Critical Illness Health Insurance Plan?

January 14, 2020

What is a Critical Illness Health Insurance Plan?

A health insurance plan is vital to get protection against the various health problems that you may suffer in your lifetime. It helps you cover the treatment cost. Read on to know more about critical illness health insurance plan, what it covers and how to buy one.

The critical illness insurance policy provides coverage against life-threatening medical conditions like heart attack, cancer, etc. The insurance provides coverage in terms of a lump sum upon the diagnosis of the illness. You can use the amount for the treatment.

Essential factors to consider while buying Critical Illness Plan

Sum assured

One of the vital factors to consider while buying critical illness insurance is the amount of cover that suits your needs. The treatment cost for critical illness can be very expensive. Knowing how much protection you need will help you choose the right plan to suit your needs. Make sure to get a quote from at least 3-4 insurance companies and compare them well before selecting the one that works best for you.

Waiting period

Typically, all critical plans come with a waiting period. This means that you can avail of the benefits of the cover only after the end of the waiting period. Several insurance experts recommend buying critical illness insurance that has a low waiting period.

The maximum age for renewal

Some critical illness health insurance plans provide coverage for a limited time or until you attain a specific age. Other plans assure lifelong coverage. While buying a critical illness plan, you must know the exact age up to which you can renew your insurance plan. It is better to buy a plan that has no limitation on maximum age for renewal.

Pre-existing diseases

In India, most insurance companies cover pre-existing illness after a waiting period of 3-4 years, but some companies do not cover the pre-existing condition at all. Hence, while buying critical illness health insurance policy, you must carefully assess the inclusions and the exclusions in the pre-existing disease clause.

Free-look period

Today, for the benefit of the customers, the insurance companies allow a 15-day free-look period to assess the pros and cons of the policy. During the period, if you find that the plan is not catering to your needs, you can request the company to cancel the policy and process the refund.

Illnesses covered under Critical Illness Policy

Although the medical conditions covered under a critical illness plan vary based on the plan you choose and the insurance companies’ coverage policy, generally, the critical illness policy covers the following conditions:

• Heart attack /stroke

• Organ/bone marrow transplant

• Cancer (sometimes it may be limited to a specific age)

• Kidney failure

• Permanent paralysis

• Life-threatening liver diseases

• Loss of speech/hearing impairment

• Major burns

Critical health insurance exclusions

Every insurance policy has its unique terms and conditions, and critical illness health insurance plans have their limitations. Although the terms may vary from one insurance company to the other, generally, most insurers do not cover the following conditions:

• Any critical illness that you may suffer due to self-inflicted injury

• The illness arising because of alcohol abuse, drug abuse or consumption of any other intoxicating substance

• The illness suffered due to Human Immune-deficiency Virus (HIV) infection

• Illnesses arising because of cosmetic, or obesity-related treatment

• The critical illnesses, which are linked to congenital diseases.

To know about the inclusions in the policy, you must refer to the terms and conditions stated in the policy documents. If you want to buy critical illness health insurance, knowing the exclusions is just as important as knowing the inclusions. This will help you make an informed buying decision.

Customers can apply for Health Booster Policy that covers your illness expenses.

Non customers can apply for Health Booster Policy that covers your illness expenses.

 

 

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