Critical Illness Insurance - Myths and Facts

Busy work schedules, improper sleep, wrong eating habits, alcohol, and tobacco use, and reduction in physical activity are some of the major factors that are influencing our health and making us prone to critical illnesses.

Critical illnesses are health disorders which require prolonged medical treatment, such as heart disease, liver or kidney failure, cancer, etc. As these illnesses require extended medical care, you need to be financially capable to face the medication and treatment costs. And obviously, it isn’t possible to manage everything out of your savings. Hence, having a critical illness plan is absolutely imperative.

Benefits of a Critical Illness Plan

While looking for the best health insurance, one must consider looking for a critical illness plan as well.

A critical illness policy will provide a lump sum amount in the event you are diagnosed with a critical illness listed in the policy terms and conditions. You can use the policy payout in any way you want. And after the claim, the policy gets terminated.

Having said that, you can judge whether a critical illness policy is best for you or not by checking your family history, understanding the policy better and knowing the misconceptions associated with it.

To help distinguish between the myths and the facts, here are the top myths and facts associated with critical illness insurance: -

Myth - As I have critical illness insurance, I will be covered for all critical illnesses.

FACT - Having a critical illness cover doesn’t mean that you will be covered for all types of critical illnesses. This is why it is important to read the policy terms and conditions at the time of policy purchase. You will be covered for those illnesses that are clearly stated and defined in your critical illness policy. Not paying attention to the details can turn out to be a big mistake.

Myth - When diagnosed with a critical illness, I will get the claim amount immediately.

FACT - Upon diagnosis of a critical illness, you won’t be offered the claim amount at once. The time of settlement varies from one provider to another. Before buying the policy, you can ask your provider as well as consider the Claim Settlement Ratio associated with the provider. If you want your critical illness policy to work the best for you, read your insurance policy carefully.

Myth - As my critical illness insurance covers cancer; I am covered for all types of cancer.

FACT - Again, not necessary. You need to read the policy document to know what types of cancer are covered by your insurance policy.

Myth - If I’ve pre-existing medical illnesses, I cannot buy critical illness insurance.

FACT- There are different critical illness insurance plans. Some require a medical screening, while some do not. If you have a pre-existing illness, you might have to pay a higher insurance premium.

Myth - All critical illness insurance plans have a higher insurance premium.

FACT - Not every critical insurance plan is expensive. Before you consider buying a plan, there’s no harm in comparing the best health insurance plans on offer. Checking how much that extra add-on is going to cost, and how much you can save if the worst does happen, are essential aspects to check in this regard.

Besides the dedicated critical illness plans, there are health plans which come with critical illness as an add-on cover. However, if you are looking for critical illness benefits, buying a dedicated critical illness insurance plan is without a doubt a better choice in the long term scheme of things.

Know more about health insurance coverage in detail

**To understand exactly about the policy coverage, exclusions, etc. read the Policy Wordings carefully.**