Life-threatening illness can happen to anyone, and it usually does come with an exorbitant price tag attached to it. These catastrophic illnesses take a toll on a person’s physical and mental health and drain them financially. Critical illness can still deliver a heavy blow to a person's lifetime savings despite having a health insurance plan. It is because health insurance covers only the hospitalisation charges and not the treatment charges, especially the diseases with more prolonged treatment.

What are Critical Illness plans?

Critical illness plans are supplementary insurance plans covering the cost of treatment and recovery of a severe illness. It covers you against life-threatening illnesses that involve exorbitant medical expenses for regular treatment. It also offers you lump sum coverage for pre-and post-hospitalisation expenses. However, it is essential to consider few factors before buying a critical illness plan for yourself.

Factors to Look into While buying a Critical Illness Plan

Research

Conduct thorough research on comprehensive critical illness plans. Understand the inclusions, exclusions and clauses thoroughly to eliminate last-minute surprises while trying to file a claim. For example, certain insurance

companies cover illnesses like cancer, stroke, heart attack, while Alzheimer's are not considered a critical illness by some. Hence, ask an insurance aggregator to explain the plans being offered and customise your best plans.

Maximum Age Limit for Coverage

Check out the maximum age limit that the policy will cover you before buying a critical illness plan. Few critical illness plans restrict the age limit to 60 years. Therefore, go for plans that offer you lifelong coverage.

Pre-existing Diseases

Not all insurers will provide you coverage for pre-existing diseases. Talk to your insurer about the history of health ailments running in the family and pick a plan that covers these adequately.

Claim Procedure

Going through the hassle of documentation is the last thing one could ask for during emergencies. So instead, choose the insurers who offer a hassle-free claim settlement process along with the highest claim settlement ratio.

Waiting Period

All Critical insurance plans have a certain waiting period until the policy benefits are offered. No claim is admissible by insurers until 90 days in case of new policies. However, the waiting period doesn’t stand for renewals. When a critical illness is diagnosed, few insurers wait for 30 days to proceed with the claim only if the insured survives that period. Choose the plans that do not have such a clause.

Lookout for Sub-limits

Not considering sub-limits on critical illness policy will have you bear a certain amount of incurred expense from your pocket. Read the sub-limit clause in your critical illness plan to stay informed of the limitations in advance and choose accordingly.

While a young and healthy person might wonder if it is worth buying a critical insurance policy, it is always best to stay prepared for emergencies in today’s situation. Moreover, these plans are best when purchased early, where health risks are minimal due to lower costs offered.

Life is uncertain. So, let’s brace ourselves to handle all challenges wisely.

The author is Founder and CEO at expediting Healthcare

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.