A Vital cover for your medical insurance program

Rahul’s parents were almost devastated to learn that their son has suffered from a cardiac arrest at an early age of 43. During this storm of their lives for his parents, a health insurance seemed like a ray of hope. However, they were shocked to learn that the health insurance would not cover the high costs of hospitalization and medication. Is there any clue on what could have Rahul done is such a crisis situation? He missed out on critical illness policy cover. Like Rahul, most of us feel that a comprehensive health insurance plan is enough to deal with all health problems, but we overlook that critical illness and medical insurance plans are two completely different policies that cater to separate purposes. It is good to have a health insurance but a wise step of critical illness policy will let you avail an extensive coverage and secure your future against unforeseen medical predicaments. The premium for critical illness plans are generally based on sum assured, term selected, age, lifestyle and health of the insured. It is best to buy these plans at an early age and protect self and family from financial burden that might arise due to lack of adequate funds in the event of being diagnosed with critical illness.

A critical illness can mean loss of income, total or partial disability and change in lifestyle. The financial burden could be far more than what an indemnity medical insurance plan offers. Buying a critical illness plan is the best way to get over these shortcomings. While a protection policy covers hospitalization, a critical illness plan pays a lump sum on diagnosis of serious ailments listed in the policy document.

These lump sums that you get can be used for various purposes such as to pay for expensive treatments or recuperation aids, make up for loss of income due to fall in the ability to earn or pay off debts. Both these plans provide benefits in different ways. A critical illness plan is a supplement to your medical insurance plans.

Financial experts say the purpose of a critical illness cover is paying for expensive treatments. Plus, it is much cheaper than an indemnity plan. For instance, a comprehensive health plan for a 30-year-old with a sum insured of Rs 5 lakh costs around Rs 6,000 a year. A critical illness policy with the same cover costs Rs 1,500 a year. A comprehensive health plan covers a wide range of risks and is therefore significantly expensive than a critical illness plan that covers specific situations. Some people who feel the need of getting insured for the regular treatments and also worried about the twirling days can opt for a combination of comprehensive health insurance and critical illness cover which can give a good balance between pricing and coverage.

Critical illness covers are fixed benefit plans. One gets the full sum insured irrespective of whether one is hospitalized or not or what the treatment expenses are. However, details vary from plan to plan. The built-in coverage also differs from policy to policy. While some insure accidental death and partial or total disability due to accidents, some don't. One should evaluate and compare a few different plans to decide which suits one the best. Consider the list of critical illnesses covered, the cover amount, the claim procedure and the payment history of the insurer while incorporating this extensive coverage in your medical insurance plan.