Given the uncertainty that comes with life and health in general, it is always a good idea to make sure you have enough cushion to fall back on in the event of a medical emergency. However, investing in a health insurance policy alone is not always enough. Suppose you are diagnosed with a disease that necessitates specialized care, such as cancer or stroke.
In that case, your insurance provider may not provide sufficient coverage for the costs incurred, and you will have to pay out of pocket. In this case, you may want to consider purchasing critical illness insurance to protect your family and yourself from a medical emergency.
Before you look for a suitable policy, let us understand how critical illness insurance works.
What Is Critical Illness Insurance?
Severe and long-term diseases that necessitate costly medical treatment are covered by critical illness insurance. When you pay an additional premium amount, most life and health insurance policies include a critical illness rider that enables the insured person cover the hospitalization and treatment costs. The diseases that are covered under the critical illness policy may differ from insurer to insurer.
In most cases, after you submit your diagnosis of a critical illness to the insurance company, you will receive a lump-sum payment under the CI plan. You can use it to pay for treatment, hospitalization, medications, and doctor’s fees. The sum insured of the critical illness policy is predetermined. As a result, you should obtain information on the sum insured from the insurance provider before making your purchasing selection.
Other than this, there are some other things you should keep in mind when buying critical illness insurance:
1. Consider Your Requirements
When considering critical illness coverage, the first thing to examine is your family structure, current age, and dependents, particularly ageing parents. For example, if you have senior citizens in the household, it may indicate that you require additional coverage for unexpected illnesses such as strokes.
In case you are the sole earning member of the family, a critical illness policy will provide an extra layer of protection for your loved ones against unexpected diseases that could have a financial impact. As a result, buy a critical illness coverage that will provide you with enough financial assistance so that your family’s other requirements are not jeopardized.
2. Assess Your Health Condition
Your health at the time of buying critical illness insurance may influence whether or not you purchase it. For example, if you smoke frequently and have a stressful work environment, you are more likely to have health problems in the future. As a result, it is usually a good idea to get started early, in financial terms.
On the other hand, being a smoker may also result in a minor increase in your premium. Keep in mind your family’s medical history, as you may be susceptible to similar health issues in the future.
3. Know Your Financial Situation
Suppose you believe your current financial situation is stable enough to handle any unexpected health concerns. You may want to choose a critical illness insurance policy with a lower coverage level in that case.
However, no matter how much money you make now, keep in mind that healthcare expenses are skyrocketing, and additional inflation in the healthcare industry is unavoidable. As a result, consider all these criteria before settling on the sum insured.
4. Choose The Right Cover
It is crucial to consider the required coverage to decide which policy is best for you. In case of some severe illnesses, the treatment is less expensive than for others. Estimating your coverage requirements can help you select the best critical illness insurance for your requirements.
5. Check The Policy Features Carefully
It is never a good idea to be hasty when it comes to insurance. Even if critical illness insurance is not your primary health insurance plan, it is still crucial. As a result, before choosing one, look over the benefits of critical illness insurance, the exclusions and inclusions and the list of illnesses covered to see if it is suitable for you.
Along with that, make sure you read the terms and conditions completely to understand the policy’s exclusions. The policy wordings as presented by the insurer can often be difficult to comprehend. If you have any concerns about any of the agreements, make sure you have your questions answered before signing the documents.