Choose critical illness insurance to avoid economic strain in emergencies

In today's fast-paced world, where medical advancements are continually evolving, the financial burden of treating serious illnesses can be overwhelming. Critical illness policies have emerged as a vital tool in managing the economic strain that comes with life-threatening diseases. These policies provide a comprehensive financial safety net, ensuring that individuals can focus on recovery without worrying about the financial implications of their treatment.

 

Understanding critical illness policy

 

“While a standard health insurance policy addresses general medical expenses, critical illness insurance products offer financial protection against specific life-threatening conditions such as cancer, cardiovascular diseases, and strokes. Notably, health insurance policies tend to cover medical treatments and hospitalisation charges. However, a critical illness plan can provide additional financial support that may not be fully accounted for under a basic plan,” said Shilpa Arora, COO and co-founder of Insurance Samadhan.

 

 

If someone is diagnosed with cancer, they must pay for treatment and hospitalisation costs, along with additional expenses for maintaining a good diet, hiring a physiotherapist and a caretaker, purchasing monthly medicines, seeking medical consultations, and undergoing tests. In such a circumstance, a critical illness policy can help cover these additional expenses and provide much-needed financial relief.

 

“Another concern associated with the diagnosis and treatment of a critical illness is the loss of income. We have seen that serious health conditions can lead to prolonged absences from work or permanently impair one’s ability to return altogether. Several studies have found that individuals may experience a 20 per cent decline in earnings within four years post-hospitalisation. Such circumstances result in loss of earnings, making it difficult to cover health and living expenses. Thankfully, the lump-sum payout from a critical illness policy can provide financial security during such phases. This is why I advise individuals to consider integrating both health insurance and critical illness coverage to tackle the multifaceted costs of treatment and recovery,” Arora said. 

“Opting for the critical illness benefit by paying an additional nominal premium, along with a life insurance policy, provides the dual benefits of health and life insurance. Notably, the premium amount remains constant throughout the tenure of the policy. At ICICI Prudential Life, we offer critical illness benefits for up to 30 years to our customers,” said Srinivas Balasubramanian, Chief of Product & Marketing, ICICI Prudential Life Insurance Company Limited.

 

  Points to keep in mind while buying critical illness insurance

 

Coverage scope: Check which illnesses are covered. The best policies cover major conditions like cancer, heart attack, stroke, kidney failure, and major organ transplants. 

 

Sum insured adequacy: Select a coverage amount that can handle both medical expenses and income replacement. Consider your monthly expenses, existing liabilities, and inflation in healthcare costs.

  Waiting period: Most policies have a waiting period (typically 30-90 days) after purchase before coverage begins. Understand this timeframe clearly.

 

Age restrictions: Be aware of entry age limits and coverage duration. Some policies offer coverage only until a certain age.

 

Premium costs: Compare premiums across insurers, but don't choose based solely on price. Consider the value of coverage and benefits offered.

  Exclusions: Understand what isn't covered. Common exclusions include pre-existing conditions, self-inflicted injuries, and certain high-risk activities.

 

Claim settlement ratio: Research the insurer's claim settlement history to gauge reliability during claims.

 

Medical test requirements: Be aware of any medical examinations required before policy issuance.