Health insurance, specifically a critical illness Insurance plan, covers you if you are diagnosed with any of the specified serious illnesses and pays a lump sum for the treatment and rehabilitation required. The most common critical illnesses covered by many insurers are usually life-threatening illnesses, heart attack, stroke and cancer. There are a lot of factors to consider when you are willing to begin your insurance plan. Some of these elements are the length of the health insurance plan, the coverage provided, and how long it would take to pay off the monthly payments for the insurance plan. It might get confusing for you to narrow down a critical illness plan with the best coverage and offer for you, with so many options available. Read on to learn more about this and the factors you should consider while choosing a plan!
What is a Critical Illness Plan?
The term 'critical illness plan' describes plans that provide health insurance and coverage for people diagnosed with a specific list of serious illnesses. These conditions are categorised as "life-threatening" illnesses, heart attack/stroke, cancer and others. Critical illness is a health condition that is serious enough to disrupt your daily life. This may be due to long-term effects of the condition or sudden acute onset. If you are diagnosed with a critical illness, you might need help in the form of rehabilitation treatments, nursing care, and doctor's appointment bills. Critical illness insurance helps meet your expenses by providing a lump sum payout should you suffer from certain specified illnesses and meets the plan's definition of disability.
A critical illness plan also provides coverage for other serious health conditions not mentioned above. Critical illness policies are designed to cover any conditions that meet their definition of disability. These insurance plans can be purchased for individual or family packages. The premium amount varies from insurer to insurer and from policy to policy, depending on the insured person's age, gender, etc.
Critical Illness and its Effects on Your Finances
Certain conditions can be life-threatening and majorly affect your normal routine. These issues not only affect your physical health but also have a significant financial impact. It might force you to take a break from work or quit, or in some cases where the illness results in a disability, it might even make it hard for you to seek further employment. If you have a critical illness insurance plan, it provides you monetary assistance in the form of coverage during hardships so you can support yourself and any loss of income.
Conditions That Qualify for Critical Illness Plan Benefits:
There are certain criteria that must be met to qualify for critical illness plan coverage. These are usually included in terms of the policy. Listed below are a few of the illnesses which qualify for this plan coverage:
Cancer
Cancer is a group of diseases, usually due to abnormally uncontrolled cell growth in the body, and can affect different parts. It can be benign in nature or malignant. If you have cancer, you will require chemotherapy and radiation treatments. These treatments often come with a heavy financial burden, especially if you aren't covered under a critical illness insurance plan. The lump sum amount provided to the insured person by the critical illness plan will help pay for the medical bills incurred during cancer treatment. It also provides monetary assistance to the family members who provide care during recovery.
Heart Attacks/Strokes
Heart attack patients require long-term care, which translates into a heavy financial burden to be carried by the family members. Avoid this by purchasing a critical illness insurance plan. In addition, this insurance plan will also provide financial assistance during the physical rehabilitation of the affected person. It will help them lead a normal life after recovering from a heart attack or stroke.
Cardiovascular Diseases
Cardiovascular disease (CVD) means various diseases that involve the heart and blood vessels. Cardiovascular diseases are the number one cause of death in the US. Cardiac arrest can lead to a stroke, heart attack or myocardial infarction. Heart failure is when the success of your heart is reduced or even stopped completely due to damage that has occurred in the largest muscle of your heart. For rare conditions like this, the insurance plan covers the cost of treatment, medications, and sometimes even patient transportation.
Arthritis
Arthritis is a common disease characterised by inflammation of joints. It occurs because of an overloading or prolonged use of joints with extended movements. Since this condition usually involves pain, it can be very debilitating for its sufferers. Therefore, the insurance plan you'll sign up for should cover most, if not all, of the treatment and further rehabilitation expenses for this health condition.
Points to Consider While Comparing Critical Illness Health Insurance
Choosing a plan that provides the desired coverage and financial security is essential. The right critical illness plan will not only give you the desired coverage but will also protect you financially. Here are some factors to consider while comparing the various types of plans:
Plan Coverage
While comparing health insurance plans, it is important to check whether they provide coverage in case of pre-existing conditions or any disease already existing in your family history. This can be termed a "waiting period". You should avoid choosing plans based on waiting periods and look at the overall benefits of each plan.
Health Bars
Critical illness plan health bars are used to show the amount an insurer will pay if certain illnesses occur for the insured person. The amount paid will be higher if you choose plans with a longer health bar, thus giving you more coverage and a sense of security.
Health Bars for Combined Treatments
The health bars for combined treatments provide more benefits than individual treatments. They are more beneficial and guarantee coverage for other specified illnesses that qualify for critical illness plan benefits in addition to the primary illnesses covered under your plan.
Treatment Sums
You should check what happens when critical illness occurs together with any other conditions like heart disease or diabetes. All these conditions may require different treatments, and it is necessary to know the amount payable for each treatment.
Length of the Treatment
It is very important to know how long the treatment will take. Although the specific length of time will be mentioned in the plan, it is always advisable to use a calculator on the insurance company's website that works out the total cost with and without taxes.
High-income Restrictions
The amount your plan pays for a higher-income individual can also vary significantly. Considering this, it becomes important to know your exact income and the final monetary benefit your plan will pay in case you have other critical illnesses along with the specified illnesses.
Check the Extent of the Lump Sum Amount
A lump sum word may sound humungous but can sound irrelevant in terms of inflation. So, check the lump sum to be disbursed by the plan and assess it based on the treatment cost of critical illnesses now. Have the coverage amount more than the treatment cost because the costs can always rise.
Restrictions of Coverage
You should also consider whether a plan would cover any pre-existing conditions or any other condition that has been present for a long time. This will help you decide whether your plan provides the coverage you deserve and need in case of critical illness.
Conclusion
Critical illness plan benefits can be very important when you are suffering from a serious disease or injury. While choosing an appropriate plan, it is necessary to look at factors like the sum insured, health bars and lump sum payout options that suit your needs. Based on family history and other factors, it is also important to assess the conditions you might have a predisposition to choose the best critical illness insurance plan for you and your family.
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