Critical Illness Insurance

4 questions to ask yourself when buying critical illness insurance


We live in a world where we have little or no time to focus on the nitty-gritty of our health. Most of us are in a premediated rush to get things done and overlook important aspects of our health. However, sedentary and unhealthy lifestyles can actually trigger challenging health issues that can sometimes even put our lives under threat. This is where critical illness insurance comes into play. Ponder a while over these aspects when you are going about choosing an insurance package.

What does the policy cover?

Critical illnesses are usually categorized as diseases that can be life-threatening or fatal. Some insurers may also go to the extent of covering total and partial disabilities under the scheme. However, some of the major diseases covered include cancer, Heart attacks, kidney failure, paralysis and organ transplants, among a few others. The insurance policy offers a lump sum that can save you from the fiscal hardships in case the unforeseen happens.

Is it the same as Health Insurance?

A critical illness policy will pay you a lump sum once a deadly illness has been diagnosed. This is additionally non-taxable and can be flexibly used by you. However, a health insurance policy will only go as far as covering hospital bills and may not give a payout that may be adequate enough to cover the treatment costs of critical illness.

How much should the cover amount be?

The risk of running into the domain of deadly diseases is a risk that hangs over everyone like a Damocles Sword. But you can of course, reduce it to some extent by adopting a healthy
lifestyle. However, you may still have a mishap that can leave you disabled in which case the policy would be beneficial. The sum assured is conventionally 3 to 4 times that of your health insurance coverage.

What doesn’t it cover?

Various insurance companies have specific rules when it comes to exclusions of illnesses in the policy. For instance, some may not cover a pre-existing condition. However, some exceptions may include and may not be limited to injuries that are self-inflicted, drug abuse-related conditions and injuries incurred while indulging in illegal activity, among others.

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