These policies covering heart attack, organ transplant, loss of vision or cancer or any serious medical condition as prescribed by your insurance company involve paying a lump-sum amount to cover treatment, prescriptions and deductibles. Sounds great, right as the yearly premium comes at a not so premium pricing. However, there are a few points which needs to be pondered over:
- Waiting periods – most benefits will not be provided till 90 days
- Reduction in benefits with age – in addition to increase of premium with age, the lump-sum payment may get reduced with age
- Not all diseases may be covered – for example, non-invasive cancers may not be covered in all policies. It’s important to read the fine print
- Not all pre-existing diseases are covered
- Is generally a one-time payment – so in cases of repeat heart attack, it may not be cover
So, this begs the question – should you buy critical care insurance?
Critical Illness insurance plans do not cover pre-existing medical conditions as covered by traditional mediclaim. Also, the increase in premiums for critical illness insurance plans are much higher than traditional plans. Further, most policies will reduce or completely remove your benefits on reaching a specified age, when you would require the coverage the most.
This insurance does give the user a degree of comfort; however, for many, critical illness insurance is just not worth the price. You should be fully aware of the benefits available with your mediclaim should you suddenly face a serious illness. If you think it is insignificant, try topping-up your plans for a far more affordable option. The overall premium may be higher, it will be worth it to not buying an independent critical illness insurance policy.