How to Select the Best Critical Illness Insurance Plan

by Himani Mathur Content Writer

A general health insurance plan helps pay for medical expenses that arise suddenly. Without this insurance, you would have had to pay for the expenses incurred. You can add numerous add-ons to general health insurance and if you don’t have these add-ons, the policy may not suffice if you have been diagnosed with a serious disease.

A critical illness plan on the other hand pays for your treatment during a critical illness, like organ failure, cancer, blindness, loss of limbs, or even deafness. The plan only becomes active when the policyholder is diagnosed with a critical illness that is specifically covered in the plan.

Why You Need Critical Illness Insurance?

If you already have a health insurance policy, you may wonder about the purpose of a critical illness plan. Your existing health insurance would pay for hospitalization and doctor’s consultation, so there is no need to add to the monthly expenses. However, your traditional health insurance will not be able to cover the treatment associated with critical illnesses. This requires a critical illness insurance policy that is specific to the disease.

When you are diagnosed with a critical illness, you lose income, sustain partial or complete disability, and experience dramatic changes in your life. The financial expenses associated with the treatment would be very high, and your regular health insurance will not be able to cover these expenses.

You may be surprised to learn that the premium for critical illness insurance is generally less than general health insurance. So, you will not incur major expenses when it comes to paying the premiums.

Selecting the Best Critical Illness Plan

Here are some tips to help you choose the best critical illness insurance for your healthcare needs:

Standalone or Add-on: You have the option of getting the insurance as a standalone policy or you can add it as a rider onto your general health insurance plan. It is prudent to remember that a standalone policy will be more flexible as compared to an add-on, as the add-on sum insured will always be lower than the original health insurance policy.

Keep in Mind Existing Health Insurance: As you grow older, the chances of becoming critically ill increase. Hence, you should take into consideration the coverage offered by your existing health insurance plan before buying critical illness insurance. This way, there will be no overlap in the coverage that both plans offer.

Special Plans: Health insurance providers offer special plans for senior citizens and women. These plans are designed keeping in mind the specific needs of women or senior citizens. So, check for these special plans when you start hunting for critical illness insurance.

Check for Renewability: Many critical illness plans cannot be renewed after the age of 50. However, you can still find insurance providers that offer lifetime renewability. Most senior citizens should take a another look at critical illness covers, as their general health insurance may not cover all the diseases that come with age and the plan also may be expensive with a low sum insured.

Use these tips to find the best critical illness plan that suits your needs. Make sure that you understand the inclusions and exclusions, so that you can choose a plan that will take care of your treatment, should the need arise. Be sure to compare plans before making the final choice.