How to Choose the Best Critical Illness Cover for Yourself

What is Critical Illness Rider?

Critical illness rider is an additional coverage benefit available with life insurance plans at a nominal additional premium. The rider provides financial protection if you are diagnosed with life-threatening health conditions like cancer, renal failure, or in need of a liver transplant. The rider pays a lump sum once the illness covered under it is confirmed, which you can use to cover medical expenses or other financial needs. If you’re wondering how to choose the best critical illness rider, look for factors such as coverage amount, the list of illnesses included, the claim settlement process, and policy terms.

The growing incidences of non-communicable diseases like cardiovascular diseases further make it imperative to go for a critical illness cover which gives a lump sum which help you in meeting the non-hospitalization expense as well. Just to put this in perspective, Cardiovascular Diseases (CVDs) are growing at 9.5% annually and are one of the fastest growing chronic illnesses in the country, according to ASSOCHAM-Deloitte joint study. CVDs account for one-fourth of all deaths in India.

 

Key Things to Consider: Focused on Buyer’s Perspective

So while we know for sure that critical illness covers are 'critical' for your financial health, it is equally important to know how to choose a good critical illness cover. Here are a few tips for choosing the ideal critical illness cover for you:

 

1. Know the cost of medical procedures:

Quite often we purchase a health policy without even understanding the cost of medical procedures or the expenses for regular follow-ups after hospitalization or in-house care required in case of a critical illness. Before deciding on a cover, you should know what it could cost if some illness of serious nature strikes you in future. Go for a higher cover to account for inflation and periodic increase in the cost of health care.

 

2. Know the critical illness plans available:

Before buying a plan, do a thorough research on how many diseases and procedures it covers. Just a large number of diseases covered may not mean much until you know what procedures are covered, and if there are any limits on expenses. Weigh all the options and resist the urge to go for the cheapest product. Here you also need to decide whether to go for a separate critical illness plan or you can combine critical illness riders with your life or health insurance plans. It really depends on your requirement. A stand-alone policy provides more freedom in deciding the sum insured and gives you a larger cover when compared with riders. Usually, the sum assured under a rider (such as critical illness) cannot exceed the base policy’s sum assured. For example, if your term insurance is ₹10 lakh, the critical illness rider will typically be capped at ₹10 lakh. Because of these limitations, opting for a separate critical illness policy may be better if you need higher coverage.

 

3. Assess your finances:

You wouldn't want to spend your savings on meeting hospital bills. Consider all the factors like what is the premium, how many family members are covered in the policy, if the plan covers dependent parents and do you get the premiums back at the time of maturity in case you never need to claim from the policy. Take into account any existing covers such as mediclaim or health insurance plan that you might have.

 

4. Know your age and lifestyle situation:

Age is a big consideration while going for a critical illness cover. Older people should buy larger covers since they are more vulnerable to illnesses and also because the health insurance plans are expensive and offer low sum assured. You may need to consider your lifestyle before deciding the amount. A healthy lifestyle helps in minimizing the risk of a critical illness. But if you are a smoker, and walking up to your car is the only exercise that you indulge yourself in, or if your family has a history of diseases like diabetes or blood pressure, you need to buy a large critical illness plan, which covers most of these diseases.

 

5. Look for special features:

Some policies may have a special feature like return of total premium on maturity, waiver of premium on accidental partial or total disability rider. Choose the features or riders judiciously as per your requirements.

 

6. Keep your Health Condition in Mind

When looking for the best critical illness riders, you should take your current health situation into consideration. If you have pre-existing illnesses or lifestyle risks (like smoking or high blood pressure), insurers may charge you higher premiums. Pre-existing conditions don't always disqualify you, but the premiums might be higher. Along with your current health, you should also review your family’s medical history. If close relatives have suffered from critical illnesses such as cancer or heart disease, it’s wiser to opt for a critical illness plan early.

 

Who Is Eligible to Buy a Critical Illness Rider?

Before you choose the  critical illness rider, it’s important to know who can apply for it. Here are the common eligibility conditions most insurers follow:

 

1. Age Requirements

Generally, insurers have a minimum and maximum entry age requirement for a critical illness rider. However, the age criteria vary from insurer to insurer. Also, critical illnesses can strike at any age, and family history may increase the chances even earlier. Choosing early can help you get critical illness benefits at a lower premium.

 

2. Free from Pre-Existing Conditions

Ideally, you should be healthy when applying for a critical illness cover. Pre-existing conditions may lead to higher premiums or exclusions. Individuals already diagnosed with a listed critical illness are ineligible. dd

 

3. Financial Readiness

When choosing a critical illness cover, you should ensure that you’ve sufficient funds to pay regular premiums. The premiums can be higher with age or existing health issues.

 

4. Consent for Medical Check-Up

Insurers often require you to undergo a medical examination when applying, particularly for higher cover amounts or older age. Being open to testing shows transparency and helps you qualify for better terms.

 

Key Takeaways

1. Critical illness riders offers a lump sum payout on diagnosis of serious diseases like cancer, renal failure, or heart ailments.
2. You can buy a critical illness cover as a rider with your life insurance plans at a nominal additional premium and subject to availability.
3. It covers both hospitalisation and high non-hospitalisation costs such as medicines, post-surgery care, and therapies.
4. To choose the best critical illness cover, consider coverage amount, illnesses covered, claim process, cost of medical procedures, and policy features.
5. Factors like age, lifestyle, finances, and family medical history play a vital role in selection.
6. Eligibility depends on age, health status, financial readiness, and willingness to undergo medical tests.

 

Conclusion

Choosing the best critical illness policy ensures financial security during tough times and shields your savings from unexpected medical costs. It will also help you to live a stress-free life. Keep these tips in mind before you purchase critical illness cover to get the maximum benefit. Till then, stay healthy, stay stress-free!

 

FAQs

 

1. How do I choose the right critical illness policy?

Select the best critical illness policy by considering your age, health, lifestyle, coverage amount, diseases included, and exclusions. Compare insurers, check riders and premium options, and consult an advisor if needed.

 

2. How can I determine the coverage needed for critical illness insurance?

To figure out the coverage for a critical illness insurance plan, look at your financial responsibilities like medical bills, loans, monthly expenses, and your children’s education. Based on these, calculate an amount that would comfortably cover these needs if a critical illness strikes. Also, check the maximum coverage available under the plan to ensure it matches your needs.

 

3. What should be the optimal amount for critical illness cover?

A good critical illness rider amount should be enough to cover treatment costs, household expenses during recovery, liabilities like loans, and incidental costs, while considering your existing savings. However, note that the rider sum assured cannot exceed the base policy sum assured.

 

4. Is is important to buy critical illness insurance?

The rising incidence of life-threatening diseases like cancer and heart ailments stresses the need for having critical illness insurance. It provides a lump sum upon diagnosis, helping cover medical expenses, thus ensuring that your family receives the needed financial support during tough times.