Importance of Critical Illness Insurance

In times of medical inflation and rising illness rates, having a health insurance policy is essential. However, in certain medical situations, a standard health insurance plan may not be sufficient. A critical illness insurance (CII) plan provides additional financial security against serious health conditions.

For those unfamiliar, a critical illness insurance plan offers pre-determined financial compensation if the insured is diagnosed with a covered serious illness.* Claims are subject to terms and conditions outlined in health insurance and critical illness insurance policies.

While a CII plan can be beneficial, selecting the right plan requires careful consideration. Here’s a guide to help you choose the best policy.

Factors to Consider Before Purchasing a Critical Illness Policy

Before completing the proposal form for a critical illness insurance plan, verify the following aspects:

1. Diseases Covered in the Policy

The primary factor in any insurance plan is its coverage. In a CII policy, it is crucial to review the list of diseases included.

The critical illness insurance policy offered by Bajaj Allianz General Insurance Company covers a wide array of diseases, including but not limited to:

• Myocardial infarction (first heart attack of specified severity)
• Open chest CABG
• Stroke (resulting in permanent symptoms)
• Cancer (of specified severity)
• Kidney failure (requiring regular dialysis)
• Major organ transplantation
• Multiple Sclerosis (with persisting symptoms)
• Surgery of Aorta
• Permanent paralysis of limbs

Besides diseases, the policy also covers certain medical events and surgeries, providing broader financial protection against unforeseen health challenges.

2. Coverage Restrictions

Each coverage element in your CII policy will have specific terms and conditions outlined in the documentation. Carefully review these terms to understand the instances in which claims can be filed. The document will also include general exclusions, which specify situations where coverage is not applicable.

3. Waiting Period and Survival Period

Most insurance policies have a waiting period, which is the duration after policy purchase during which claims cannot be made. The critical illness insurance plan from Bajaj Allianz General Insurance Company has a waiting period of 90 days.*

A distinctive feature of critical illness insurance is the survival period. This refers to the time an insured individual must survive after being diagnosed with a covered illness for the insurer to disburse the benefit. The survival period in Bajaj Allianz General Insurance Company’s CII policy is 30 days.*

4. Balancing Coverage and Premium

While extensive coverage is desirable, it often results in higher premiums. Choosing a CII policy should involve balancing financial security with affordability. Utilize online calculators, such as a Mediclaim policy for family premium calculator, to estimate costs and determine a feasible premium. Compare multiple policies to find one that aligns with your coverage needs and financial situation.

Critical Illness Insurance Is Not a Substitute for Health Insurance

Even a highly comprehensive CII policy cannot replace a standard health insurance plan. A CII policy provides a lump sum benefit upon diagnosis but does not cover routine hospitalization, diagnostic tests, ambulance charges, and similar expenses. For standard medical costs, a traditional health insurance policy is more suitable.*

To maximize benefits, consider purchasing both health insurance and critical illness insurance from the same provider. Claims are subject to terms and conditions outlined in health insurance and critical illness insurance policies.

Conclusion

Now that you understand the key factors in selecting a critical illness insurance plan, you can make an informed decision for yourself and your family. A well-chosen CII policy can provide financial assistance, allowing you to focus on recovery rather than financial burdens in case of a serious illness.