No doubt, health insurance is much required in this era by almost every individual to counter the medical treatment cost. Life is unpredictable, and hence we must keep ourselves prepared always. However, there are also some illnesses which are not ordinary and fall in the category of critical illness. There are diseases which one may have to counter over a period, where the treatment is much costlier. Diseases such as cancer can create havoc for one who is not financially capable enough to bear the cost of treatment.
In such a situation, rather going for health insurance one needs to have critical health insurance policies where such critical diseases are covered, and one can get ample benefits in terms of monetary support.
The coverage you get:
The coverage of diseases usually varies between the service providers; but there are some diseases which are covered by almost every service provider. Here is a short list of such diseases. The policyholder needs to check the coverage of diseases before going for the claim and confirm the diseases that are covered by the service provider from whom he has got the insurance.
- Organ transplant (Major)
- Bacterial Meningitis
- Traumatic injuries of the head
- Cancer (of different types and at different levels)
- Open heart surgery and valve replacement
- Coma with specified severity
- Kidney failure and dialysis
- Multiple sclerosis
- Aplastic anaemia
- Liver Disease at the end stage
- Lung diseases end stage
- Major burns
- Paralysis of limbs
- Muscular dystrophy
- Bone marrow transplant
- Heart attack for the first incident
- Open heart coronary
Who all need to have this policy?
The critical illness can help almost everyone as these diseases are of such a nature where the treatment is costly and lasts for a more extended period. If one does not have this plan, he may be ruined financially or may need to stop the treatment. If one is salaried and the family is dependent on the sole income of the salary of the concerned person, he needs to have this plan first. There are various terms for which The Critical Illness Plan can be purchased.
The policy explained
A critical illness insurance plan can be purchased separately as many of the service providers in the market offer the same. Even in normal term insurance or endowment plan, one can have coverage for these diseases according to the critical illness rider. However, there is a difference between life insurance, health insurance and critical health insurance plan which one must know before buying the plan.
In critical illness, one can go for a specific sum assured as the majority of the service providers have various plans with fixed and flexible sum assured. Against the provision of health insurance or life insurance where one can claim only for the medical treatment, in this plan, the service provider offers the sum assured to the policyholder with the diagnosis itself. The claim requires only a diagnosis report and supporting documents as per the process prescribed by the service provider. The policyholder, after getting the sum assured, can use the same as per his will. He can go for further treatment or can also pay off his old debts with the amount received from the service provider.
How much cover should one go for?
It depends on person to person as a majority of these devices can be treated only through some expensive treatment. However, with the increase in sum assured one can also see an increase in premium and hence if one goes for higher sum assured which he may not need, he will have to bear the extra cost of such premium. For this reason, the sum assured for a critical illness plan must be chosen carefully. The premium of this plan also depends on a number of factors, such as the age of the policyholder, type, area of residing, habits and lifestyle, etc.
Looking at various factors affecting one’s life, it is always recommended to have a critical illness policy in any form, whether it is a part of life insurance or separate plan for the critical illnesses only.