How To Compare Critical Illness Insurance Policies
When Ramesh's friend suffered a stroke, Ramesh got to witness the financial toll it took on his friend's family. They did not have any financial backup in place, so his friend's family really struggled to meet their everyday expense. Ramesh was now convinced that he needed to include a critical illness insurance plan to his insurance portfolio. Should he suffer from any critical ailment, the payout from the policy would cover his expenses for the time he took off work.
A critical illness cover provides protection against specific life-threatening illnesses, like cancer, third degree burns, end stage renal disease etc. Treating such diseases usually require several visits to the hospital. So not only does one have to bear the hospitalization cost, there will be other expenses like doctor visits, medical expenses, etc. A critical illness plan pays out a lump sum amount that can be used to cover all these expenses. The lump sum payout from this policy is besides any health insurance benefits that may be paid out.
It is most important to compare various policies before selecting the most suitable one. Here are the factors to keep in mind while comparing different critical illness policies:
List of covered illnesses
The list of serious illnesses covered under an insurance plan will vary from one insurer to another. If a particular critical illness runs in your family, you need to ensure that you get a plan that covers that ailment. The most suitable insurance plan for you is one that covers all your insurance needs. It is also advisable that you opt for one where the most number of illnesses are covered.
Survival and waiting periods
Critical illness plans generally come with a survival clause, which means that the insured individual must survive a certain number of days after being diagnosed of a covered illness for the insurer to pay the benefit. Besides this, there is also a waiting period of about 90 days for commencement of the policy and around 3 years for coverage of pre-existing illness. Consider going for plans that have very little to no survival and waiting period.
Premium Vs Coverage
Go for a policy that provides the maximum cover, and at the same time, is easy on your pockets. The plan that you select should be such that it covers your entire expenses for another 15 or 20 years should you get diagnosed with a critical ailment and not be able to work.
Fate of policy in the event of claim
Most of the time, a policy stands cancelled and non-renewable after an insurance company has made a claim payout. However, there are some providers that classify illnesses into groups, and should you file a claim for a treatment under group A, your policy will continue to remain active, but the same group illness for which the claim has been made (in this case, group A) shall be excluded from the coverage.
A critical illness cover should never be opted for in haste. You need to invest a certain amount of time and effort in comparing the various options in the market based on the above factors as well as their pricing structure before settling on one. OneInsure is here to help you find the most suitable critical illness plan. Drop us a mail at email@example.com or write to us in the comments section below to find a plan that covers your needs.