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Best Critical Illness Plan – How to Choose

Aug 20, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

critical illness insurance

A Critical Illness Plan acts as an insurance cover in which you receive a lump sum amount for the treatment, in case you are diagnosed with a critical disease covered by your existing insurance policy.

It is an important plan because it will take care of your financial needs during the time of a medical emergency. Moreover, securing your life against pandemics like COVID-19 is the need of the hour. Hence buying a protection plan with cover against 36 critical illness can be a wise choice. Aegon Life Term Plan covers you against 36 critical illnesses and also covers deaths due to Coronavirus.

Apart from that, there are several critical illness insurance plans available in the market, so it may become difficult for a person to choose an appropriate one.

How to Choose the Best Critical Illness Insurance Policy – Consider the Following

    1. Decide how much coverage you need today and in future
    2. The range of diseases covered
    3. Stand Alone or Rider
    4. Sub-limits
    5. Renewal Limits
    6. Waiting Period

Take a minute to learn more about each of them.

Cover Amount:

The cover amount is a critical aspect to keep a note of. You need to be sure about the amount you want to be covered with. Various illnesses have different healthcare costs with some being more expensive than the other. You should take into account your medical history and present health condition before narrowing down on the right amount. Compare a few quotes from the insurance providers and then decide on the plan you are comfortable with.

The range of diseases covered:

When you take a look at a critical illness plan, check the range of critical illnesses covered in the plan. The major illness which should be covered: cancer, stroke, first heart attack, and open chest CABG. Coverage for these diseases can be availed through a standalone plan or a rider benefit on existing insurance plan.

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Stand Alone or Rider:

Critical Illness covers have two variants: standalone and rider.

A standalone policy allows you to determine the sum insured. It must be renewed every five years which means the premiums change as per the age and health conditions of the policyholder. On the other hand, a critical illness rider whose coverage amount cannot exceed the base policy amount enjoys a longer tenure and the premiums paid for it is cheaper compared to standalone policies.

Sub-limits:

Critical illness plans are built to take care of all your financial needs during a medical emergency. However, there are often some sub-limits in them too. Say, you have a plan or INR 5 lakh, there will a limit or INR 2 Lakh for medical tests and the remaining INR 3lakh for surgical costs. The sub-limits differ from plan to plan, a wise thing would to be check and compare the limits before you agree to them.

Renewal limits:

Many insurance policies have a limit after which the critical illness plan can’t be renewed. Plans like Aegon Life’s iCI rider has a minimum entry age of 16 and a maximum entry age of 65 with a maximum maturity age of 75.

Waiting Period:

Most of the critical illness policies have a waiting period of 2-3 years for pre-existing diseases, after which they provide cover to these diseases. If you by any chance are diagnosed with an illness, you won’t be covered by the plan because critical illness plans have a waiting period ranging from three to six months. Go for a plan which has zero or a very short waiting period, for you never know when a medical emergency may strike.

Health should never be taken lightly and nowadays with such stressful times, we can never be sure what may happen. A critical illness plan will always come in handy. Insurers such as Aegon Life offer good critical illness plans and health insurance plans with great features with excellent rates.

Insure your loved one’s financial future after you with a term insurance plan

You can get tax breaks if you have a life insurance policy as well, provided you have add-ons like medical insurance and critical illness riders.


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