7 Tips to Read Before Buying a Critical Insurance Policy

With the uncertainty in life and health, it’s wise to build a financial cushion to fall back on during medical crises. Critical illness insurance policies are as important today as any other life insurance, term insurance, or health insurance policy. Not only are terminal diseases like cancer are becoming more prevalent, but to fight and beat them you need to have significant money for treatment costs and hospitalization expenses.

Before you buy critical illness insurance, consider these 7 tips to make an informed decision.

Things to Consider When Purchasing a Critical Illness Cover

Tip#1 Consider Your Family Structure

Consider the number of family members and dependents you have, especially aging parents. Get comprehensive critical care insurance cover, so that the needs of your family are met on time.

Tip#2 Check the Workings of the Plan

Check how the plan works. Your insurance policy should be able to provide a lump sum amount when you are diagnosed with a serious disease. Some plans also offer a death benefit. The sum assured is fixed. Use a critical illness premium calculator to find the payable premium based on your coverage, age, and income. Check other clauses like survival period and ease of accessibility. Based on these factors, make your buying decision.

Tip#3 Consider Waiting Period

“Waiting period” refers to the time during which the policy is payable after the insured person gets diagnosed with a defined critical illness. In such plans, benefits are offered after 90 days of commencement of the policy. For pre-existing diseases, this is 48 months. So, consider a policy with a low waiting period.

Tip#4 Look for Exclusions

Before buying a policy, look for the list of exclusions. This means situations which the insurance company doesn’t consider for processing claims. Find a policy that offers maximum coverage with minimal exclusions.

Tip#5 Check the List of Illnesses Covered

Your critical illness plan should cover a long list of serious diseases. Read through the policy details carefully for this.

Tip#6 Check for Premium Waiver Benefit

It would be wise to opt for a plan which offers a premium waiver benefit, when you get diagnosed with a critical illness. This means that you don’t have to pay the premium after diagnosis and acceptance of the claim by the insurance company for the rest of the policy term.

Tip#7 Consider Various Other Benefits and Sub-Limits

Sub-limits are benefits including hospital room rent or inclusion of specific diseases. You can get the flexibility to choose a plan based on your desired features and budget. Moreover, there are plans which can offer benefits like:

  • A second opinion from a panel of medical experts
  • Premium discounts for non-smokers
  • Rider options
  • Multiple benefit structures
  • Life stage re-balancing
  • Increasing cover benefit
  • Fixed pay-outs independent of nature of expenses incurred

Choose critical illness insurance based on your financial standing, long-term obligations, and future goals. So that, in case you unfortunately face a terminal illness in the future, it doesn’t impact your family members and their plans.

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