Things to Consider Before Buying Critical Illness Policy

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Let’s face it, our life and health are uncertain. From catching a simple cold to diagnosing a critical illness, we never know when we might suffer from any ailment. Considering this uncertainty associated with life and health, it makes sense to think about having adequate support during medical emergencies.

Most people believe that by simply investing in a health insurance policy they’re fully protected. However, in reality, a standard health insurance plan doesn’t cover the exorbitant costs of treating life-threatening illnesses. Serious health issues such as cancer and strokes which may lead to financial ruin are not covered by general health insurance policy. In such a critical situation, the only way to safeguard your future and that of your loved ones is a critical insurance policy.

What is Critical Illness Insurance Policy?

In view of the fact that surviving a serious medical condition could leave a patient with exorbitant medical bills, critical illness insurance was developed. Treating critical illnesses require extensive medical care which often outstrips the income and savings of a family. As such, buying a critical illness insurance policy can help the family to pay for the treatment of diseases which are not covered by traditional insurance.

Critical illness insurance provides coverage in medical emergencies such as heart attack, organ transplants, cancer, kidney failure, paralysis, coronary bypass, and many more. Typically, more than 35 critical illnesses are covered under critical illness insurance. In general, the insured person receives a lump sum amount to cover the costs associated with the disease. The amount received, however, depends on the type of policy.

The biggest advantage of critical illness insurance is that the money can be used for various non-medical expenses. This includes paying for daily living expenses, transportation expenses, etc.

How to find the right Critical Illness Policy?

Before investing in any critical illness policy, it’s important to understand that each policy has specific terms and conditions. Depending on your needs, make sure that the illnesses you’re concerned about are included in the policy. Notably, there are some policies that exclude some particular cancer and chronic illness are usually not included. If your diagnosed illness is not included on the policy list, your claim may be denied by the insurance company. You must look for diseases that you think you could be particularly susceptible to. Here are some tips to keep in mind while shopping for a critical illness policy.


  1. Estimate the cover you need

To purchase the right critical illness policy, first consider your financial standing and estimate the amount you would need to be covered. Factors like your family structure, your present age, and your dependents, especially aging parents all need to be taken into account. In addition to this, expenses such as payment for mortgage or EMI and rental payments should also be considered. In short, every expense that needs to be taken care of in case of loss of income during hospitalization should be estimated. However, this doesn’t mean to go for a policy that is out of your budget.

  1. Understand the associated waiting and survival period

Usually, to obtain the sum assured for your medical expenses depends on the waiting and survival period. The time period between buying an insurance policy and the disease getting diagnosed is termed as the initial waiting period. While the specified duration an insured person survives after diagnosis of a critical illness is the survival period. Make sure you understand these terms before finalizing the policy.

  1. Know the settlement process

It is important to check all details related to the settlement process and read the fine print. This is where an experienced insurance advisor can be of great help and assist in choosing the best critical illness policy for your needs.

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