What Is A Critical Illness Cover?

There is no denying the fact that our life is uncertain. With the increase in the risk of lifestyle diseases and rising cost of medical expenses, it is advisable to invest in a health insurance policy. It provides coverage in case of expenses incurred for medication and hospitalization. Understanding the health insurance terms is the first step towards making the right investment decision. ‘Critical illness plan’ is one such important term, which you should thoroughly know about.

What is Critical Illness Plan?

If you have already purchased an insurance plan, it is advisable to invest in a health insurance critical illness plan. It is a, which pays a lump sum amount that is equal to the sum insured, if you acquire a serious ailment like a stroke or cancer. The cover will provide a lump sum benefit that can pay for the cost of your treatment and care in addition to recuperation expenses. The insurer will pay the entire sum insured, regardless of the expenses incurred by you. It is basically, a defined benefit plan since the payout is pre-decided.

What is Covered Under Critical Illness Plan?

In case of a health insurance critical illness plan, different insurers offer different coverage. Majority insurers cover about eight to 20 critical illnesses or more. These include coronary artery bypass surgery, cancer, heart attack, heart valve replacement, paralysis, organ transplant, kidney failure, stroke, and aorta surgery. The coverage for the same can range anywhere above INR 1 lakh.

Why Buy a Critical Illness Plan?

Due to the uncertainty of life, you never know when you might end up with a critical illness. If you do not have a critical illness cover, you will have to incur all the expenses from your pocket. Medical costs are increasing and it is not easy to pay for the hospitalization and medical expenses from your savings. Individuals with a pre-medical history find it difficult to get an insurance policy. Moreover, it is difficult for individuals with critical illness to get a life cover. Hence, a rider in the form of a critical illness plan on your health insurance plan will help you remain secure against any critical illnesses. The plan will provide you with a financial coverage on the expenses incurred in the treatment of the same.

What is Waiting Period Feature in Critical Illness Plan?

The waiting period is a feature in the plan that requires the insured person to survive for at least one month after the critical illness is diagnosed. Additionally, there is also a 90- day waiting period at the start of the policy. Hence, any illness, which is diagnosed within a period of 90 days and occurrence of death within a period of 30 days after the diagnosis will not be covered in the plan.

How to Buy The Critical Illness Plan

The plan is available as a rider on your health insurance plan. When you buy it as a rider, the policy will continue even after the rider has been used. The rider will remain constant through the entire policy period; hence, the cost of the policy may come down. In case of buying a critical illness policy, the premium might increase with your age due to the increased chances of a critical illness. It can be purchased as an individual plan or as a family floater plan.

It is ideal to look for a health insurance that offers a rider for critical illnesses. However, if you have any pre-existing conditions, you need to mention the same to the company before going ahead.