Is Your Standard Health Insurance Enough? Why Critical Illness Cover is an Essential Rider for Financial Protection..

Purchasing a health insurance policy is considered a wise move in today's times. We buy a policy with the hope that it will provide relief from hefty hospital bills in the event of illness. However, many times, we overlook some crucial details when purchasing a policy, which can later lead to a major financial disaster. One such omission is Critical Illness Coverage. This is an oversight that can leave a family financially devastated upon the diagnosis of a serious illness. With today's changing lifestyle and increasing pollution, the risk of serious illnesses has increased more than ever. Therefore, it's crucial to understand how much and how your health policy protects you.

People often consider their base health insurance plan to be complete protection, but the truth is that treatment for serious illnesses is not only expensive but also lengthy. This is when not just the hospital bill but the entire financial balance of the household is disrupted.

Understand the Mathematics of Critical Illness Cover
Many people believe that their standard health insurance plan is sufficient for all types of illnesses. However, there's a significant difference. Your regular health plan typically covers hospitalization, surgery, doctor's fees, and medication expenses (reimbursement). This means that the company reimburses you (or offers a cashless option) based on your bills.

However, critical illness cover is completely different. It's a special rider or add-on plan that you can add to your primary health or term policy. Its most important feature is that upon diagnosis of a critical illness covered by the policy, the insurance company pays you a lump sum (lump sum) amount. This amount can be 10 lakh, 20 lakh, or 50 lakh, as chosen by you. You don't need to submit hospital bills for this. A mere diagnosis report is sufficient.

The question arises: when hospital expenses are already covered under a regular policy, why is this lump sum needed? The need is enormous. Treatment for serious illnesses like cancer, stroke, or kidney failure isn't limited to hospital stays; it often lasts for months, sometimes even years.

During treatment, a person's job or business often comes to a halt, which can lead to a loss of regular household income. A regular health policy will cover the costly chemotherapy bill, but it won't cover household groceries, children's fees, or loan EMIs. This is where a lump sum payment from a critical illness comes in handy. The policyholder is free to use this money in any way they choose – whether to seek better treatment, both domestically and abroad, to cover other expenses (such as expensive medications and nursing care), or to compensate for lost income. This coverage protects you from financial hardship and allows you to focus solely on your health.

What illnesses are covered?
The scope of a critical illness policy is quite broad. While coverage may vary from policy to policy, most insurance companies include certain major and life-threatening illnesses. There are many policies available today that provide financial protection against anywhere from 20 to 30-35 critical illnesses.

These include:

Cancer
Heart attack (Myocardial Infarction)
Stroke
Kidney failure
Major organ transplant (Liver or Lung)
Paralysis
Multiple sclerosis
Coronary artery bypass surgery (CABG)

Serious surgery and burns
This coverage prepares you for situations where the cost of treatment can be far greater than you imagined and your life savings can be depleted in a matter of months.

Keep these things in mind when purchasing a policy.

After understanding the importance of critical illness cover, it's crucial to consider a few things when purchasing it to avoid any problems later on during a claim.

List of Illnesses: First, check which and how many critical illnesses are covered by the policy. Are those illnesses covered for which you have a family history?

Waiting Period: Every policy has a 'waiting period,' which is typically 90 days. This means you can file a claim only after 90 days of purchasing the policy. Furthermore, for pre-existing conditions, this period can range from 2 to 4 years. Be clear about this.

Survival Period: Many policies stipulate that the policyholder must survive for a certain period (such as 14 to 30 days) after the diagnosis of the illness to receive the claim amount. This is an important clause that must be checked.

Coverage Limits and Premiums: Choose the right coverage amount based on your age, lifestyle, and family history. It's not wise to opt for less coverage just for a lower premium.

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