Finance

How to Choose the Best Critical Illness Insurance Plan?

It is quite an obvious fact that we must always compare insurance plans by looking at for some few important factors before selecting one. The insurance industry has a lot to offer with its various schemes which of course, adds to the confusion almost every insurance plans sounds exactly same as the others. We can select the best insurance policy for ourselves by comprehending the extent of cover these schemes offer. Here are the few factors to consider before choosing a critical illness insurance plan.

  1. Add-on or stand-alone?

Usually, critical illness plans are available in two ways: a stand-alone policy which is a separate plan which is not related to your pre-existing general health plan in any way; and add-on policy in which you can pair your existing health status or life insurance policy with a Critical Illness Rider.

A stand-alone policy is deemed for its flexibility than an add-on because it offers a wide coverage. The insured sum of the latter is lesser than that of the parent policy (meaning, the health insurance or life insurance policy). It is quite rare that an insurer can offer such a larger rider cover against a smaller base cover. Typically, a stand-alone critical illness plan has a higher premium than its counterpart.

  1. The perfect cover

A prolonged knowledge of the advantages offered and the add-ons that are meant to be comprised in the plan will also assists you in choosing wisely. The premium of a health insurance policy is deemed to increase with age as people become more vulnerable to critical illness and diseases when they become of age. Hence, it is better to get a health cover at a younger age. While doing this, keep your existing health and/or life insurance handy and select your cover in such a way that there is no conflict in the offered coverage as it may cause a lot of confusion at the time of claim.

  1. Special plans

There are special insurance plans for women and senior citizens. They are designed by considering their needs and requirements. Also, there are some policies which provide additional money for any diagnoses or treatment. Hence, keep looking out for such exclusive policies before choosing a critical illness insurance plan.

  1. Renewability and age

Some insurance providers have constricted the renewability age of insurance policies to 50. Once past that age, you will not be able to renew your plan. But there are some companies which bestow a lifetime renewability to you. Senior citizens particularly should get such a plan that is able to cover a wide range of diseases as their health insurance plans have a lower sum insured and they are quite expensive too.

  1. Waiting period

After you have signed up, you may have to go for a waiting period as well. Some companies have it like for 2 to 3 years, meaning they won’t consider any claim request during this period. You should always choose an insurance plan that has a lesser waiting period.