10 Points to consider while buying Critical Illness Cover

The cost of health treatment is skyrocketing. There are many cases of lifestyle disease like heart disease, stroke, obesity etc. In case you have a lot of money, you won’t be bothered about medical expenses. However, if you have a limited set of monthly income you should worry about growing medical expenses. One way of arresting this issue is buying a health insurance policy. Apart from health insurance policy, one can also go for Critical illness cover plan.

What is a Critical Illness Cover Plan?

A critical illness insurance plan is a health plan specifically designed to cover major critical illnesses such as cancer, heart attack, kidney failure etc. The best part of critical illness cover plan is you will receive the claim amount the moment you are diagnosed with any one of the critical illnesses listed in the policy document.

A critical illness plan can be purchased by any individual belonging to age bracket of 18-65 years. There is a mandatory pre-policy medical screening test for any individual opting for policy above 45 years of age. You can cover all your family members under this plan including kids above the age of 6 years.

If you are planning to purchase critical illness cover, you should consider following points.

Critical Illness Cover

10 Points to consider while buying Critical Illness Cover

Standalone or Add-on

There are two type of critical illness cover plans available in the market. First is standalone plan and second is Add-on plan with term insurance. If you are buying new policy it is advisable to go for pure term plan along with critical illness cover. This is to ensure life and critical illness cover in the single plan.

List of critical illness insurance coverage

One of the important point to check when you buy such policy is list of critical illness covered under this plan. It is advisable to buy policy that cover large number of illnesses. However, please note that large number of illness cover means higher premium amount.

Medical History and Current Medical Condition

Your medical history and current medical conditions are major factor to take in account while buying critical illness plan. Insurance company will evaluate your health condition while evaluating premium rate of policy.

Claim Process

It is essential to know about claim process before buying any insurance policy. You should also check about document required while filing claim.

Renewal Benefits

Critical Illness plan requires renewal every year. It becomes essential for you to know renewal benefit in case you have not filed any claim in the previous year.

 Maximum Coverage Age

One of the important point of consideration is coverage age supported by insurance plan. You should select an insurance plan with maximum coverage age.

Current Financial Situation

Another important point which plays crucial role in the selection of critical insurance plan is your current financial situation. If you have sound financial condition you may opt for low level critical illness plan.

Family Situation

If you are young and single, you can go for term plan along with critical illness rider. This will give you complete coverage of life and critical illness. If you are family person you can go for standalone critical illness plan.

Limit of Sum Assured

There are some plans that comes with pre-conditions of waiting period. In such plan you have to wait for medical & hospital bills before claiming amount. Make sure you go for plan which will provide you with lump sum amount on the diagnosis itself.

Renewal Limits

There are certain insurance plans that come with a limit for renewal and the plan can’t be renewed once reached that prescribed limit You should avoid such plan.

In the conclusion, I would like to say apart from above points you should carefully look at key features and list of exclusions mention in the plan before buying.

The Author

Raviraj Parekh

Raviraj is the man behind moneyalpha.com. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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