How Does Critical Illness Insurance Work?

In everyone’s life, a time comes when you start thinking about things that you have hoped in the past that you will never need to buy. The list may include the phone number of a good lawyer, hair dye, anti-wrinkle cream, and more. Apart from these general items, there are some crucial things that you should consider, and health insurance is one of them.

Thinking about going to a doctor or a long term expensive treatment is something no one wants to go through. However, life is uncertain, and you can never expect what is going to hit you the next second. Getting sick is terrifying, and it also ruins your financial position. The money you have been saving for a car or a home will vanish in a matter of days.

Sadly, when we opt just for health insurance, we forget the point where it won’t cover critical illnesses such as cancer, heart diseases, etc. To make sure you are covered for essential ailments like heart problems, kidney failure, etc., you have to get a critical insurance policy.

What Is Critical Illness Insurance?

First of all, you need to understand what Critical Illness Insurance is. This particular type of insurance covers the financial risk that comes with severe medical conditions. Health problems like kidney failure etc. are not covered under health insurance. Unlike the health insurance plans, you will get a lump sum amount in case you are diagnosed with any of the listed critical illnesses. The idea behind such insurance plans it to cover the complete recovery process and not just the treatment.

How Does Critical Illness Insurance Work?

When you are diagnosed with a critical illness, you are not only burdened with the medical bills and cost associated with the recovery process, but you are also losing working hours that were supposed to be spent in earning bread and butter. Critical illness policy will cover the financial burden in the time of a life-threatening event. Every insurance company has a list of critical illnesses that are covered under such plans. In case you are diagnosed with any of these, you will get the amount by just informing them with Photostat copies of the diagnosis, etc.

Critical illness insurance covers an array of ailments that are not covered under health insurance. Some of these health problems are:

  • Heart diseases
  • Cancer
  • Kidney failure
  • Organ failure
  • Coma
  • Paralysis

Please note that when we talk about critical illness insurance, it is entirely different from health insurance and disability insurance. While critical insurance is aimed at providing cover for the treatment, recovery, and personal income loss, health insurance only protects the medical bills. Whereas disability insurance covers personal expenses while you are unable to work because of a health issue or an accident.

Factors that can influence the premium amount

The premium that you need to pay for a critical insurance plan depends on several factors. The insurance company will ask you a series of questions to determine how is your current health situation. Also, there is a waiting time of 3 months linked to critical illness insurance. If you get diagnosed with a critical illness during these three months, the company will not pay you anything even if the disease is in their list of covered health problems. Here are some factors that can have an impact on the cost of the premium:

  • Your medical history
  • The current medical condition
  • Family medical history
  • Age
  • Gender
  • Work environment
  • Coverage you seek

Documents required for filing a critical illness insurance claim

  • Filled and signed the form to file the claim
  • Photocopy of your identification documents
  • Medical certificate issued by a registered doctor or hospital with details about the critical illness. The certification should come from a specialized health professional not less qualified than MD or MS
  • Investigation documents like scans, blood reports, etc

In addition to these documents, the insurance company may ask for additional documents based on the situation. In general, the insurance company releases the payment in a few days after receiving the duly filled claim request form.

Is it worth to get critical illness insurance?

If critical illness insurance is worth or not is a million-dollar question and to answer it, let’s assume you are living a healthy disease-free life with no prior medical condition or family history of any serious medical condition. One day you feel little pain in the side of your abdomen, which keeps on increasing. When you check with the doctor, you get diagnosed with severe kidney disorder, which requires immediate surgery.

In this case, your health insurance is not going to provide any support other than the doctor’s bill or medicine bills. Rest all you have to pay from your savings. This is where critical illness insurance comes in handy. It will provide you all the financial support that you seek. The lump-sum amount that you will get on diagnose will cover all medical bills and provide you some financial support while you are recovering. It is a wise decision to go for critical illness insurance.

News Reporter

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