Buying critical illness insurance plans can be confusing. Which one do you go with, what do they cover, how long does the plan last for?These are a lot of questions you have to ask yourself before you buy the right one.
More and more people are becoming ill from life-style diseases, such as cardiovascular illnesses, open heart surgery, and paralysis, conditions that require a lot of care to keep under control. But when they get out of control, how do you find the right plan to take care of your needs?
How Do Critical Illness Plans Work?
When looking for the right health insurance, keep in mind that a critical illness plan works much different from a regular health insurance plan. A critical illness plan provides a lump sum of money to the insured when a serious ailment occurs. This sum is the equal to the insured sum within the details of the plan.
The lump sum can be used for the cost of care and treatment, any costs of recuperation, and settle any debts that remain from treatment. The terms of any plan state, what the amount is that will be paid out, regardless of the cost of hospital expenses. A health insurance plan, on the other hand, only reimburses for costs that have been incurred during hospitalisation and other related treatment.
What a Critical Illness Plan Covers?
Now that you know how it works, what does a critical illness insurance plan actually cover? Depending on the provider, what is covered by the plan can vary. The majority of insurers cover at least eight to twenty major critical illnesses; some cover even more. The most common illnesses and conditions that are covered include cancer, kidney failure, stroke, heart attack, and several heart-related treatments and surgeries, just to name a few.
The Costs of a Critical Illness Plan
Treatment for these devastating illnesses is expensive, so having a plan to cover them can also be expensive. Expect to pay about `1,500,000 for a plan that will cover majority of the costs. It would be a good idea to look at your family history as well to determine the best plan, as this will tell you what conditions you may or may not be predisposed towards.
The Downsides of CI Plans
The first caveat is that the insured party must survive at least 30 successive days after the diagnosis of the illness or condition before a claim can be made. Not to mention that there is also a 90-day waiting period at the start of the policy.
The second downside is that a CI plan will not cover the costs of hospitalisation. It might be good to have an additional health insurance policy in place to cover these costs.
Before you invest in any one critical Illness plan, it’s always best to read all of the policy details beforehand so that you know what you’re signing up for. You don’t want to be caught with surprises later down the road, leaving you financially and emotionally ruined. If you’re still unsure, you can always bring a policy to your family doctor to see if it covers what you need.