4 Things To Look for While Buying Critical Illness Insurance
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Hi! Welcome to FundooMoney, your 24 X 7 buddy in all matters related to personal finance. As the financial year heads towards its end every year, you receive emailers, text messages and calls from insurance companies about their critical illness plans. In this noise and information overload, how do you pick the best plan for you? Here are few tips.
Get a fix on the source You can attach a critical illness rider to a new life insurance plan that you might be buying. Or, you could buy it as a standalone cover from a life insurance or general insurance company.
Figure out the plan category that works for you The term of critical illness plans offered by general insurance companies is usually lesser than those offered by life insurers. While general insurers offer a cover for 1-5 years, life insurers provide it for a longer term—10-20 years.
Check the extent of coverage Ensure that you zero down on a plan that has a wide coverage of a large number of financially debilitating critical illnesses. All insurers cover nine to 12 major critical illnesses or even more such as: cancer, coronary artery bypass surgery, heart attack, stroke, kidney failure, aorta surgery, heart valve replacement, major organ transplant and paralysis.
Understand when benefits kick in A typical feature of critical illness plans is that the insured person needs to survive 30 successive days after the diagnosis of the critical illness to make the claim. Remember, if the critical illness incepts or manifests during the first 90 days of policy inception, no claim is paid.
Find out about medical examination There could be a medical examination conducted in empanelled hospitals depending on the age, sum insured opted and any adverse health declaration on the proposal form. Most insurers reimburse 50 percent of the cost of the tests while many others do it at their cost.
In the end, a quick recap. Before buying a critical illness plan you must:
1. Get a fix on whether you will buy it from a life insurance or general insurance company
2. Figure out the plan category that works for you.
3. Check out on the number and extent of coverage of critical illness along with the conditions related to benefits.
4. Find out details of any medical examination.
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