A sedentary lifestyle, unhealthy food choices, stress, improper sleep patterns, hectic work schedules, hereditary factors, and consumption of tobacco and/or alcohol, to name a few, expose the body to critical illnesses. A critical illness refers to a serious condition like liver/kidney failure, cancer, stroke, or heart disease. When diagnosed with any of these ailments, a person requires extended treatment and care. As the treatment of such ailments can drain one’s savings, it is wise to invest in critical illness insurance.
This fixed-benefit healthcare policy or plan covers specific ailments and pays a lump sum amount to the policyholder. The policyholder can use the payout to pay for his/her medical expenses and non-medical expenditures, such as children’s fees, day-to-day living expenses, etc.
So, does a critical illness cover offer coverage for all forms of cancer? Will the person receive the payout as soon as you make a claim? Here are some common misconceptions about critical illness insurance and some clarifying facts..
Critical illness insurance: Myths vs. facts
Some common myths and facts associated with critical illness insurance policies are listed below.Myth 1. A critical illness cover will offer coverage for all critical illnesses.
Fact: You will be covered for specific ailments, as listed in your policy document. Review the policy’s terms, conditions, exclusions, inclusions, and limitations before purchasing it. You will be covered for only those ailments listed and clearly described in the policy.Myth 2. I will receive the payout as soon as I am diagnosed with a critical illness.
Fact: The time taken for claim settlement differs from insurer to insurer; it also depends on an insurer’s claim settlement ratio. Also, you must complete the survival period (i.e., 30-90 days from the date of issuance of the policy) to receive the lump sum payout.
Myth 3. Since my policy covers cancer, all forms of carcinoma will be covered.
Fact: Your policy will clearly state the type, stage, and severity of various forms of cancer that will be covered.
Myth 4. I have pre-existing diseases, so I cannot purchase a critical illness cover.
Fact: If you have any pre-existing diseases, you may have to shell out a higher premium. However, this does not mean you cannot opt for a critical illness insurance policy. Your chosen insurer may ask you to undergo a health check-up for screening. Depending on your health, you may have to pay a higher premium if you are deemed to be at an increased risk of developing a critical illness. However, a pre-existing disease does not make you ineligible for receiving coverage by critical illness insurance.
Myth 5. Critical illness insurance is expensive.
Fact: All critical illness policies do not come with high premiums. You can choose a standalone policy, or an add-on critical illness cover to enhance the scope of coverage of your standard/basic health insurance policy. If you choose a critical illness rider, the premium will be less than that of a standalone policy.
Myth 6. Critical illness insurance plan covers all ailments.
Fact: A critical illness insurance policy covers specific ailments only. Your policy document will clearly list the specific illness you will receive coverage for, and you will only receive coverage for such illnesses.
Myth 7. I have been diagnosed with a critical illness listed in my policy. I will definitely receive coverage for it.
Fact: You are not automatically eligible to receive coverage just because the ailment is listed on your policy document. Your claim will be approved only if you meet certain criteria or terms and conditions mentioned in the policy. These criteria conform to the severity and nature of a specific illness. Always read the policy document carefully to understand your policy’s limitations, inclusions, and exclusions.
Myth 8. I already have a health insurance plan. I don’t need critical illness cover.
Fact: A critical illness insurance cover will supplement your primary health insurance plan. A standard healthcare plan or policy covers the expenses associated with a critical illness; however, it fails to offer optimal coverage. A critical illness cover is specifically designed to cover the expenses for treating a critical illness. It also offers other benefits, like covering the cost of domiciliary care. One of the most significant benefits of this cover is that the payout can be used for medical as well as non-medical purposes.
Myth 9. I am young and don’t need critical illness insurance cover.
Fact: A person can be diagnosed with a critical illness at any age. Moreover, if there is a family history of critical illness, genetic factors come into play, making one vulnerable to developing such ailments, even at a young age. Hence, buying this healthcare policy at a younger age is prudent.
Myth 10. A health insurance policy and a critical illness insurance policy are the same.
Fact: A health insurance policy covers any medical emergency, whereas a critical illness plan offers coverage for certain ailments like stroke, cardiac disease, etc.
Ideally, purchasing a comprehensive health insurance plan and supplementing it with a critical illness rider is a wise decision. If you have a genetic predisposition to a condition, purchasing a standalone critical illness insurance policy would be a better choice. Compare and analyse the features and quotes of various policies and choose one that meets your healthcare requirements and budget. Also, you will be eligible for a tax rebate for premiums paid for a critical illness insurance policy under Section 80D of the Income Tax Act. Your tax liability will be reduced by ₹25,000 (if you are aged below 60) or ₹50,000 (if you are aged over 60). It is advisable to consult an insurer for any clarification or if you have doubts about the scope of coverage.
Disclaimer – The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
