Home Life & Style Health Be Smart When Buying Critical Illness Coverage

Be Smart When Buying Critical Illness Coverage


​​​Diagnosis of a critical illness is nothing less than a nightmare coming true. It’s a major life turner that can have far-reaching consequences, both emotional and financial. Because a critical illness not only has the ​potential to break down one’s morale, but it can also wipe out one’s savings. Therefore, when the cost of medical expenses is skyrocketing, critical illness coverage is considered as the most realistic solution to fight against the unpleasant event financially.

Choosing a critical illness cover has its own benefits:

  • Stage-based lump-sum payouts
  • Availability of multi-claim option
  • Income replacement (Monthly income benefit option)
  • Tax benefits

However, when it comes to choosing the policy, you need to be smart enough to pick the right cover.

Know the List of Critical Illnesses Covered

Not all critical illness policies cover the same conditions and illnesses. Some policies provide coverage for a broad range of illnesses, while others are very specific and may exclude certain ailments. Therefore, it’s a must to go through the list of critical illnesses covered under a policy as it may vary depending upon the insurance company you choose. Obviously, it’s always better to go for a policy that covers most of the diseases.

A majority of insurance companies cover major critical medical ailments, which include- heart attack, cancer, stroke, kidney failure, paralysis, and organ transplant to name a few.

Estimate the Cover You Want to Buy

Considering the alarming growth in the cost of treatments over the years, its only practical to choose a sum assured basis a systematic research involving the treatment cost, recuperative aids, or potential financial liabilities. Today, insurance companies offer a vast range of sum assured options, so choose your coverage carefully.

Also, consider if you want to go for a comprehensive plan or a standalone policy like cancer insurance policy, as you are blessed with a choice here. In both the options, there are no major changes in the policy terms. By and large, a standalone cancer insurance policy can provide extensive coverage (for cancer) in comparison to a comprehensive critical illness plan.

Age of Coverage

Before buying the critical illness insurance, find out till what age will the policy cover the listed critical illnesses. Because some insurers may cover the illnesses up to the age of 70 years while others may cover only up to 65 years of age.

Know the Exclusions

While it’s essential to identify the things included in your critical illness policy, it is equally crucial to take note of things not covered under the policy. Therefore, to understand the exclusions, as a thumb rule read through the policy details carefully.

Several exclusions which are not covered in the critical illness policy are as under:

  • Illness caused due to tobacco, smoking, alcohol or via any drug intake
  • Illness due to internal or external congenital disorder
  • Infection due to HIV/AIDS
  • Death with injuries due to war, civil war, terrorism, navy or military operations
  • Infertility treatment
  • Any dental care or cosmetic surgery
  • Hormone replacement treatment etc.

Understand the Claim Filing Procedure

Before you finally choose any critical illness cover, it is important to check the claim process as it varies from one insurance company to the other. The best cover is the one that explains the conditions in the most precise and simple way. Accordingly, read the terms and conditions carefully and comprehend them before you sign the dotted line. Don’t get carried away with the marketing gimmicks, discuss with experts or explore on the web before you make your final decision.

Critical illness policy is a win-win solution for both, you and your family. All you need to do is to select the policy wisely so that you leverage the best when the time comes.