Things to Watch Out for When Purchasing a Critical Health Insurance Policy

Critical illness insurance is a cover taken for life threatening illnesses. It is not a replacement for the basic health insurance but is taken as additional insurance which covers expenses and treatments for critical illnesses that the standard health insurance plan does not cover. Critical illnesses include major cancers, stroke, by-pass surgery, kidney failure, heart surgeries and coma amongst others.

Purchasing a Critical Health Insurance Policy

It is not necessary for every individual to buy critical Health Insurance Policy – it depends on circumstances from case to case. However, critical illnesses can strike anytime and it is advisable to have it in your insurance kitty. Here are important tips to be considered before you buy this insurance policy.

Evaluate the Necessity

If you have been diagnosed with one of the life threatening illnesses then it makes sense to purchase this policy. In cases where a certain ailment runs in the family and is hereditary or genetic in nature, it is advisable to opt for critical illness Health Insurance Policy.

Financial Condition

Purchasing a critical health plan obviously results in premium that is in addition to your basic health insurance plan. However, the premium is far lower than the cover this insurance provides. Also, you need to keep your future financial situation in mind when taking a decision regarding purchase of critical illness health cover. You may be earning very well today but a critical ailment will put a heavy dent on your earnings and earning capacity. In light of rising medical costs it is wise to opt for this cover if you are susceptible to such life threatening diseases.

Evaluate the Policy

Never rush when buying a Health Insurance Policy for critical illnesses. Go through the list of illnesses covered and make sure it specifically covers conditions that you have been diagnosed or likely to be diagnosed with.  Read the terms and conditions properly and check the inclusions and exclusions in your policy. For example, some insurers may provide for hospitalization expenses but exclude cost of medicines whereas you may want your critical illness health policy to cover both. This is why a clear understanding of the policy is extremely important.

Complement your Health Insurance

Your critical health insurance cover should complement an existing health insurance. There is no point in buying two insurance policies that provide exactly the same thing. Your critical health illness insurance should cover incidences and expenses that your general health insurance cover does not. This ensures that you have an overall health protection.

Waiting and Survival Period

Waiting period is the period that commences after buying policy. Any critical ailment contracted during this period is not covered by the insurer. Waiting period is associated with general health insurance as well, wherein only accidental injuries are covered even if they occur during this waiting period. There are four types of categories in waiting period:

  • Initial waiting period
  • Waiting period for pre-existing diseases
  • Specific waiting period for certain specific ailments mentioned in the policy document, and
  • Waiting period for maternity or new born cover.

On the other hand, survival period is the minimum time after the first diagnosis for which policy holder has to survive to claim the benefits under critical Health Insurance Policy. Make sure that both these periods are very short.

Settlement Process

No matter how loaded your critical illness health cover is, the claim settlement process with your insurer should be smooth and hassle free. If you have to run from pillar to post proving your claim or going through complex processes to receive your rightful claim then the best of insurance policy can prove to be a liability. Therefore, check online reviews, take opinions of those who have already availed insurance and purchase insurance from a long standing reputed insurance company.

Critical illness Health Insurance policy can prove to be very useful for those who happen to need it. If you are contemplating purchase of this type of cover then do pay heed to aforementioned tips so that you secure an effective and all encompassing health cover.

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Disclaimer: All content on this website is for informational purposes only and should not be considered to be a specific diagnosis or treatment plan for any individual situation. Use of this website and the information contained herein does not create a doctor-patient relationship. Always consult with your own doctor in connection with any questions or issues you may have regarding your own health or the health of others.