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Looking for A Critical Illness Plan? Here’s How It Works

Jul 17, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Health Insurance Policy

The uncertainty of life is not in our hands and very often this is the most daunting part of it. Especially, when it comes to health issues, even the healthiest of people face the wrath of frightening and unwanted diseases. As health has become a crucial aspect these days where stress levels are high, people are much more concerned about their physical and mental health. Critical illness refers to diseases or situations which are much more dreadful than the common ones. Just like Typhoid is considered as normal illness, something like paralysis, stroke, a late detected auto immune disease or even sudden blindness come under critical illness.

The main reason of this bifurcation is the impact of these diseases. The other reason can be the expenses for treatment of these diseases. Critical diseases, as menacing as they are, can cost a fortune when it comes to treatment. And while dealing with these diseases is tough, financial challenges make it even worse. No one is ever prepared for such expenses overnight. You need prior planning to be financially strong, against critical illnesses which are inescapable. Health insurance has become vital in today’s world, but the out of pocket costs for a major critical illness can be financially damaging. Being financially strong is the basic need to fight these diseases.

What are critical illness plans?

General Illnesses and critical illnesses cannot be covered in the same policy. They are totally different depending upon their treatment and the impact. That is why there are different insurance plans that specially cover critical illness.

Critical illness plans otherwise known as a critical illness cover or a dread diseases policy is an insurance product, which insurers to provide. The policy holder will receive a lump-sum amount to cover himself/herself financially against such critical conditions. However, when you are choosing a critical illness policy ensure that the illness you are diagnosed with is covered in the policy. Aegon Life’s iTerm Plus plan is available with 4 options to choose from. It provides coverage for up to 36 critical illnesses along with in-built benefits like accidental death.

The policy may require the policyholder to survive a few days after the disease is diagnosed, after which only the insurance money can be claimed. This time period is known as the survival period. This time period varies from company to company but usually lasts for a time period of 14 days. Also, there are specific rules like having a proper diagnosis report before actually paying the amount. The critical illness policies pay the health providers directly for the curing cost of critical-illness treatment. It might include everything from fee for the specialists to procedures at a few high-ranked hospitals. The coverage amount varies from around a base of 1 lakh and upwards.

Though one feature that needs to be considered is that there is about 30 days waiting period followed by 90 days waiting period at the start of the policy. Any diseases diagnosed within the first 90 days and death within 30 days after the diagnosis is generally not covered.

How to choose?

Critical illness plans or CI plans can be bought from any non-insurance company, health insurance company, and even life insurance company. Usually, in life insurance companies, critical illness plans can be a separate plan but can also be added to the base plan as a rider. There are different terms and conditions applied in the process. Though CI plans are fixed deposit plans, even if you do not have any critical illness, the sum insured is returned. Choosing the best critical illness plan depends on the yearly investment, waiting period and the amount that you will receive at the time of treatment.

Critical illnesses bring upon a stressful time for you and your family. The last thing you need is to be burdened with the pressure of paying for the treatment or not knowing how to afford the treatment. For this reason, getting yourself insured under a critical illness plan is vital.

Advt. no.: IA/Jul 2018/4159


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