Insurance have become a crucial part of our personal financial planning and future financial security. In fact, nowadays, insurance is available for all sorts of events, objects and activities. Health is one important factor where insurance plays a critical role. With rising costs of healthcare, it’s impossible to bear the burden of hospital stays for even a trivial illness. And, the costs become sky high if the health condition is a threatening one. Thus, it is advisable that you must keep a critical illness handy for such unforeseen situations.
Now the question arises which critical illness insurance to buy and for how much amount. In this article we’ll discuss a few factors which shall help you in making your decision. Whether you buy health insurance online or by directly visiting in person, you must always keep these things in mind.
1. Sum Assured
It’s important to know how much sum assured amount you want to keep, because you will have to choose your policy according to that. Some treatments and costlier as compared to treatment of other illnesses. So, knowing how much coverage you want is really helpful.
2. Waiting Period
A critical illness policy will come with a waiting, that is the period after buying the insurance in which you cannot make a claim. It’s always best to buy a plan with least waiting period.
3. Rider vs standalone critical illness policy
A standalone policy will have a higher premium, but it will also provide you with a more comprehensive coverage. On the other hand, in a rider you may get coverage against some critical illnesses, but the coverage amount will be lesser. However, you also pay a lower premium with a rider. The sum-assured in a rider corresponds to the sum-assured in the original health insurance. Like If your health insurance has a coverage of 5 lakhs, critical illness coverage will also be limited to 5 lakhs.
It’s recommended to have a standalone critical illness plan to have a more comprehensive coverage.
4. Inclusions and Exclusions
You must always check all the health conditions included in the policy and what conditions aren’t included. This will help you make a clearer picture what exactly are you buying coverage for. It’s even more important if you’re planning to have a coverage against specific set of illnesses.
Common exclusions are chewing or smoking tobacco, alcohol or drug abuse related illnesses, pregnancy related conditions, cosmetic surgeries, infertility treatment etc. With the deadly virus Corona in air, you can also look for a policy which will cover Corona virus infection. For example, all Max Bupa indemnity plans cover hospitalization for Covid-19.
Age is always an important factor in buying a critical illness insurance. A senior citizen will have a wider coverage but also higher premium as the risk of getting an illness is higher. The younger you are premium is lesser. Thus, you should choose a plan suitable for your age.
6. Maximum Renewal Age
Many policy providers will have a specific age up to which the coverage is provided while some will have lifelong coverage. So, you must always know beforehand that up to which age will you be able to renew the plan. It’s always better to take an insurance with higher maximum renewal age.