Key things to know before buying critical illness cover

By Anshul IST (Released)

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A critical illness insurance plan, as the name suggests, pays out a lump sum if the insurer is diagnosed with a critical illness such as cancer or stroke. Read on to get more details

Critical illnesses have recently begun to affect people in their most productive years of life, with appalling social and financial consequences. Another big concern is the rising healthcare inflation rate in India. Thus, at any stage of life, one cannot afford to spend a large portion of one’s savings on the treatment of a particular disease. This is why it is always suggested to remain adequately protected by taking out the right insurance product.

In addition to a comprehensive insurance plan, it is equally important to be covered by a critical illness insurance plan (AMC). This adds additional coverage to the usual mediclaim insurance policy or product. These plans not only give the insured a lump sum but also provide much needed financial backup.

What illnesses are covered by critical illness?

Some of the illnesses covered by the IC are cancer up to a specified stage, heart attack (first time), open heart bypass surgery, coma of a specified severity and kidney failure requiring regular dialysis, among others.

Why is it important to have a CI plan?

Given the increase in critical illnesses and the high cost of their medical treatment, customers must opt ​​for the Critical Illness Plan (AMC).

In addition, current health plays a vital role here. A person who smokes and leads a hectic working life is more prone to vulnerable health issues in the future. It is therefore good to choose the best critical insurance policy early so that the insured does not have to encounter too much hassle.

How does the diet work?

A critical illness insurance plan works very differently from a normal health insurance plan while providing the customer with maximum financial protection, said Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking Ltd, in an interview with CNBC-TV18.com.

“Upon diagnosis of a serious illness, the insurer pays the insured the entire sum insured as a lump sum regardless of the hospital bill. The lump sum received by the insured can be used for paying hospital bills, home loan payments, premiums, living expenses and other expenses that may arise from loss of income while the insured cannot work during the treatment and recovery phase,” said Naïdu.

What are the terms of a critical illness insurance plan?

According to Naidu, the waiting period for a critical illness plan is generally 90 days from the date the policy is issued. The insurance company does not approve claims made within 90 days of policy issuance.

Additionally, most insurers require the policyholder to survive at least 30 days after being diagnosed with a critical illness to file a claim.

About Evelyn C. Heim

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