The available options in health insurance can be overwhelming; this is more so if it has to do with a critical illness. Be it heart disease, cancer, or kidney failure; the right insurance can prove to be a saving grace. Let us consider what you should know about health insurance for critical illnesses in India.
Understanding Critical Illness Insurance
Critical illness insurance is a type of insurance product that provides monetary support at the point of diagnosis of a serious medical condition. It differs significantly from health insurance, which covers hospitalization and treatment expenses incurred by an individual. Critical illness insurance will provide you with a lump sum on diagnosis, which you may then use toward any expenditure, whether it is for treatment or daily regular expenses so that your mind and body remain focused only on recovery without the additional burden of your finances.
Things to Remember While Buying a Critical Illness Insurance Policy
Scope of Coverage: Many policies are designed to cover different illnesses. Ensure that the policy you choose provides comprehensive coverage in its list of critical illnesses and includes diseases rampant in India at large, such as cancer, heart disease, and diabetes-related complications.
Sum Insured: The sum should suffice for treatment expenses, post-treatment care, and other expenditures. Take a look at your financial needs and see what sum insured amount would have comprehensive support for you.
Waiting Period: Most of the critical illness-related policies allow a waiting period before which it will not bear any claim. This period of waiting can go up to 30 days to 90 days. So, make sure about this while purchasing any policy.
Clause of Survival Period: This clause requires the insured person to survive for a period following diagnosis. This period may vary, and the individual needs to fully understand this content.
Renewability and Maximum Age: Check the maximum age for renewal and whether the policy includes a clause for lifetime renewability. Some might have conditions restricting renewal beyond a certain age, leaving one in a lurch later in one’s life.
Most policies will definitely contain a pre-existing condition exclusion clause. Do disclose any such illnesses if you have pre-existing conditions at the very beginning and understand how those will impact your coverage.
Why Aapka Policy Wala?
Aapka Policy Wala believes in protecting your future from the realities that life throws at you. We help you with a variety of policies on critical illness insurance that meet the requirements of the majority of Indians. Our professionals take you through each of the steps so you can make a well-informed decision that suits your health and financial circumstances. With us, you wouldn’t be just taking insurance but an associate committed to taking care of you.
Types of Critical Illness Policies in India
There are many types of critical illness policies that cater to various needs and preferences within the market in India. Some of these include:
Standalone Critical Illness Insurance: These policies only provide coverage against critical illnesses, with payment made at the time of diagnosis. This is especially suited for people who already have comprehensive health insurance and want to substantially cover themselves against serious illnesses.
Critical Illness Insurance Rider: Most of the insurers offer critical illness insurance as a rider with your current health insurance policy, as compared to buying a new policy for the same.
Group Critical Illness Insurance: Most of employers offer a single-policy critical illness insurance facility to their employees. While this might be most convenient, one should look at the coverage details and get an independent policy if this group plan is not good enough.
Critical Illness Insurance Benefits
Financial Security: Whether for treatment costs, household expenses, or to actually repay loans, its lump sum payout totally ensures financial security in life’s stressful periods.
Focus on Recovery: You wouldn’t have to worry about finances but channel your energies to recovery and well-being.
Flexibility: The payout is not really for medical expenses; you can use it for anything, from travel for treatment to modifying your house, or even as income replacement in case you are unable to work.
Tax Benefits: Premiums paid for critical illness insurance qualify for deductions under Section 80D of the Income Tax Act, adding to the financial benefits.
Tips to Choose the Right Policy:
Consider the following while choosing a critical illness policy:
Research and Compare: Not all the policies that come your way should be picked. Do research on a few of them, compare them based on features, and read the reviews by other customers to arrive at the right one for you.
Check the Ratio of Settlement of the Claim: The high claim settlement ratio describes the insurer’s dependability to settle claims. Therefore, only pick those insurers boasting good records.
Understand Terms and Conditions: The policies may have convoluted terms and conditions. Be sure to understand properly the inclusions, exclusions, and any special clauses.
Seek Expert Advice: Seek advice from insurance consultants like Aapka Policy Wala to assist you with their opinions in making decisions on the best policy for you.
How Critical Illness Insurance Works
The best way to know how critical illness insurance works is to learn from real-life examples. Here are a few:
Ramesh’s Story: Ramesh, a 45-year-old software engineer, was diagnosed with cancer. His critical illness policy gave him the aggregation he needed for treatments and for taking care of his family for the time he needed to recuperate. This cushion gave him the ability to care for his health without unnecessary stress from the financial burden.
Sunita’s Story: Fifty-year-old school teacher Sunita had a critical illness rider taken along with her health insurance. When she suffered a heart attack, the policy payout covered her medical and home care expenses, thus ensuring a smooth recovery.
Common Myths of Critical Illness
Even while it is very essential, a number of myths and misconceptions surround critical illness insurance. Let us demystify some of the most common ones:
Myth: It Is Similar to the Regular Health Insurance
Fact: It is not the same as regular health insurance. Regular health insurance pays for the cost of hospitalization and treatment, whereas critical illness insurance pays out a lump sum on diagnosis. This amount comes in handy in meeting a lot of other expenses that an individual may have to incur because of the serious nature of the illness.
Critical illness insurance does not come for free, but then the same varies from person to person due to a variety of factors like age, health, and sum assured. Even though the financial protection it provides is priced as it is, it is worth much more than the cost of the premiums when you are suffering from a serious illness.
There are various policies on offer that take into consideration all kinds of critical illnesses. Before purchasing the policy, review the list of covered diseases and ensure that all major diseases are covered unconditionally.
Myth: Young and healthy people do not need it.
Fact: Critical illness could strike anybody and at any time regardless of age or health state. Buying a policy at a younger age usually results in a cheaper premium and guarantees protection from a young age.
Myth: Claims Are Rarely Paid
Fact: Reputable insurers have high claim settlement ratios. Choosing a good insurer ensures that all claims are processed hassle-free.
How to Make a Claim
For the benefits under your policy, in case of illness, one of the many essential steps is knowing how to get the same, and you can get it by claiming under the policy. Here’s how you do it step by step:
One intimation
Once you know that you have a critical illness, inform your insurer at the earliest. Give them all the details and documentation they require.
Submit all required documents‘
You are to provide the required diagnosis report, medical records, and all other documents needed by the insurance provider. Ensure that all submitted documents are complete and accurate to avoid unnecessary delays.
Follow-up Contact the insurance provider to know the status of your claim. This expediter speeds up the process and also resolves many problems that have crept in inadvertently.
Receive the Payout
Once your claim is approved, the lump sum amount will be disbursed by the insurance company. You are free to spend this money as you would want to pay the bills for the treatment, household expenses, and any other financial debts.
A critical illness insurance policy is more of a safety measure and less of a financial product. The peace of mind it gives you is great. Understanding the fine distinctions between policies and making informed choices can ensure that you and your loved ones are well-protected against life’s surprises.
At Aapka Policy Wala, we believe in smoothening the complexities of health insurance in easy educative ways. We need to educate and give confidence to you to make rightful decisions regarding your tomorrow. So take the first step today and make sure you’re investing in a policy that covers everything with complete peace of mind.
Remember, after all, critical illness insurance is not just an expense but an investment in your health. So make the right decision today, confidently protecting your future.