Making the Most of a Critical Illness Policy
Most people opt for a health insurance policy that offers basic cover against illnesses and their ensuing costs. However, there may be times when you or your family member is diagnosed with a critical illness - one that may cause loss of livelihood, and may even require extensive treatment. In such a scenario, financial obligations may be many and meeting each of them may be a daunting challenge. The Critical Illness Policy indemnifies the insured with a lump sum on the diagnosis of such an illness. This amount can be used in meeting expenses of any kind - from paying off mortgages to settling medical and surgical bills.
There are several players in the insurance market that offer Critical Illness plans of varying features. Here are some salient features that need to be considered before opting for a policy that is most relevant to your requirement.
1. Enlisted illnesses
Every company has its own list of critical illnesses. While most cover important ones like cancer and stroke, there are several other equally damaging illnesses like blindness, HIV, deafness and kidney diseases that should ideally covered in a critical illness policy. You can opt for a policy on the basis of your personal medical history alongside considering genetic disorders that you may be vulnerable to.
2. Plan Features
From renewals to top-ups, every critical illness cover comes with its own set of features. While some policies mature when the investor turns 50, it is always advisable to go in for one that has a larger cover in terms of age. Older people are susceptible to more illnesses and it is prudent to be covered by a critical illness plan at such times. The policy should allow top-up for an existing plan enabling you to obtain greater protection and benefits.
3. Stand alone or Rider?
A question often pondered upon, a stand-alone policy refers to a critical illness plan that is bought on its own merit, without conjunction to a health or life insurance policy. A rider critical illness plan is usually limited in its scope and coverage. Apart from typically covering lesser number of illnesses than a stand-alone, a rider policy when claimed causes the attached life or health policy to be terminated. A stand-alone over an existing health or life insurance provides blanket protection for a minimal premium investment.
4. Coverage Continuation
Some health insurance companies offer critical illness policies that cease to exist once a claim is made. However, it is recommended that you opt for a policy that offers coverage continuation for all the diseases, in spite of a claim. This will help you obtain hassle-free cover from selected diseases for long periods of time.
There are several players in the insurance market that offer Critical Illness plans of varying features. Here are some salient features that need to be considered before opting for a policy that is most relevant to your requirement.
1. Enlisted illnesses
Every company has its own list of critical illnesses. While most cover important ones like cancer and stroke, there are several other equally damaging illnesses like blindness, HIV, deafness and kidney diseases that should ideally covered in a critical illness policy. You can opt for a policy on the basis of your personal medical history alongside considering genetic disorders that you may be vulnerable to.
2. Plan Features
From renewals to top-ups, every critical illness cover comes with its own set of features. While some policies mature when the investor turns 50, it is always advisable to go in for one that has a larger cover in terms of age. Older people are susceptible to more illnesses and it is prudent to be covered by a critical illness plan at such times. The policy should allow top-up for an existing plan enabling you to obtain greater protection and benefits.
3. Stand alone or Rider?
A question often pondered upon, a stand-alone policy refers to a critical illness plan that is bought on its own merit, without conjunction to a health or life insurance policy. A rider critical illness plan is usually limited in its scope and coverage. Apart from typically covering lesser number of illnesses than a stand-alone, a rider policy when claimed causes the attached life or health policy to be terminated. A stand-alone over an existing health or life insurance provides blanket protection for a minimal premium investment.
4. Coverage Continuation
Some health insurance companies offer critical illness policies that cease to exist once a claim is made. However, it is recommended that you opt for a policy that offers coverage continuation for all the diseases, in spite of a claim. This will help you obtain hassle-free cover from selected diseases for long periods of time.
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