Critical Illness Insurance – Myths and Facts
Health disorders or ailments which require prolonged medical treatment are termed as critical illnesses. Diseases such as heart disease, cancer, kidney or liver failure, etc. fall under this category. These diseases not only take a toll on one’s health but also burn a hole in the pocket. It can put you in financial distress if you don’t plan for a have a sound insurance plan.
Why critical illness insurance is necessary? Investment in critical illness insurance is imperative to help manage the cost of medication and treatment of these diseases. Due to its similarity with health insurance, there are various myths of critical illness insurance. Assumptions and misconceptions can lead to the rejection of the claim. The denial of the claim stands worse than not having critical illness insurance. If you can’t get the coverage when you need it the most, then what is the point of getting the insurance?
Here’s a list of some of the myths and facts about critical illness insurance:
1. It’s not my age to buy critical illness insurance
Critical illness is not age-related and can occur at any age. In today’s times with changing lifestyle, unhealthy food habits, and stress at work, numerous youngsters are being diagnosed with a critical illness.
2. Mediclaim and critical illness insurance is the same
Mediclaim and critical illness insurance are different from each other. A critical illness plan provides lump sum coverage when you are diagnosed with critical ailments like cancer, kidney failure, paralysis, etc. Mediclaim, on the other hand, covers hospitalisation expenses when you fall ill and admitted to the hospital for more than 24 hours.
3. Critical illness insurance covers disability
Critical illness insurance provides a lump sum amount for critical diseases. The insurer has the freedom to use the coverage amount in whatever way he wants. He can use it for his treatment or can even use it to pay a mortgage, etc. Disability coverage, on the other hand, provides compensation for loss of income due to accidental disability. Compensation is provided for loss of limb or hands, partial or total blindness, etc. due to a major accident or injury.
4. Critical illness insurance plan covers all critical illnesses
Critical illness insurance policy provides coverage for only those ailments or diseases, which are mentioned in the policy wording. Though most of the diseases are covered, it differs from insurer to insurer and also depends on the terms and conditions specified in the fine print. It is therefore advised to read the policy wording carefully before you buy critical illness insurance.
5. If diagnosed with a critical illness, coverage will be provided
Every plan clearly defines the critical illnesses which are covered under it. In case your condition does not fit the definition, there are chances of claim rejection. So, it’s essential to be aware of every minute detail.
6. If a critical illness plan covers cancer, all types of cancer are covered
Every cancer type is different and may need separate coverage. You need to go through the policy document carefully to understand which type of cancers are covered by your plan and which are not. The critical illness plan generally covers cancers like liver cancer, breast cancer, colorectal cancer, etc. On the other hand, there are certain exclusions, including skin cancer, early-stage prostate cancer, etc. Again, read the policy wording thoroughly.
7. Immediate coverage when diagnosed with critical disease
The claim settlement ratio (CSR) differs from one insurance provider to another. The time and speed of the settlement depend on the insurer you have opted for. Before buying the policy, you can check the CSR associated with the provider.
8. If there is a pre-existing medical condition, I can’t buy a critical illness insurance
Critical illness plans are different for different insurers. Some require pre-medical screening while some do not. If you are diagnosed with a critical ailment during pre-medical testing, you might have to pay a high premium. But, a pre-existing condition doesn’t stop you from buying a critical illness plan.
9. Critical illness plans generally have high premiums
It’s not always the case. Before choosing a plan, compare various health insurance plans and opt for the policy that suits your needs the best. If you are buying a policy that covers later stages of critical illness, then you might have to pay a higher premium. Then, some health plans provide coverage for critical illness as an add-on. So, you can look for various options available. Though buying a dedicated critical illness plan is a better choice in the long run.
Critical illness insurance is not always expensive. If there is a family history of critical illness, it is recommended to go for a critical illness insurance policy. Do a thorough research and based upon your expectations, analyze various plans. Thoroughly check the terms and conditions mentioned in the policy. Clear all your doubts and buy the plan that fulfills your requirement.
A critical illness plan is a must with today’s lifestyle. When you buy critical illness insurance, you might have to pay a high premium, but it’s worth in the time of need.