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Tuesday 10 December 2019
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Critical Illness Vs Health Insurance for Specific Diseases

Critical Illness Vs Health Insurance for Specific Diseases

Insurers offer different types of health insurance policies, which make it extremely difficult to choose the right kind of coverage. To add to the confusion, you are constantly reading reports that show a decrease in the age when individuals are diagnosed with critical illnesses due to unhealthy eating habits and stressed lifestyles.

Research shows that three out of ten individuals aged over 30 suffer from lifestyle disorders, which escalate to critical illness in the future. More than 30 million Indians are heart patients. Diseases such as cancer, stroke, and lung disorders are some key causes of death amongst Indians.

Technical development in medical technology improves your chances of survival if diagnosed with a critical ailment. However, treatment costs for these are high and you need to be financially prepared to meet such expenses in case the need arises.

The best way to procure coverage is to purchase sufficient insurance. A critical illness insurance policy and a disease-specific plan are recommended to ensure that you are able to meet treatment costs in the future if diagnosed with any ailment.

Critical illness insurance policy

Such plans cover specific medical conditions such as heart attack, cancer, organ transplant, stroke, and many more. If you are diagnosed with any condition covered under the insurance policy, the insurer pays the sum assured. You may use the payout to meet treatment costs, repay outstanding debt, or for recuperation expenses.

Things to know about a critical illness plan

  • Coverage

The number of ailments covered varies from one insurer to another. Most insurance companies cover between eight and 20 ailments such as kidney failure, heart attack, cancer, heart valve replacement, organ transplant, and others.

  • Sum assured

Treating critical illness may require lakh of rupees. You must determine the sum assured based on certain factors such as your age, profession, family history, and inflation.

  • Survival period

Insurance companies levy a survival period, which is the number of days you need to survive after being diagnosed with an illness. This varies from one company to another and it is recommended that you check the same before you buy critical illness insurance.

Disease-specific insurance plan

As suggested by its name, a disease-specific plan covers the treatment cost for a particular ailment commencing from the diagnosis to advanced treatments. One difference between this plan and health insurance for critical illness is that the former waives future premium under specific conditions. Compared to regular critical plans, disease-specific policies are cheaper. It is an excellent way to procure affordable coverage for a particular ailment if you think you are at a risk of being diagnosed with it.

What to know about a disease-specific insurance plan

  • Coverage

These plans are available for ailments such as cancer, hypertension, kidney disorders, stroke, and diabetes. These plans ensure you do not face any financial distress in case you are diagnosed with a life-threatening ailment. Either you may receive a lump sum payout or the medical costs are indemnified under the policy.

  • Sum assured

The sum assured depends on the ailment that you want to cover. You must consider the treatment costs and inflation while determining the sum assured.

  • Survival period

Insurers waive off the survival period when you purchase a disease-specific health insurance policy.

It is important you educate yourself and take the time to research all the available options. This helps you make an informed decision.