May 19, 2024

4 Questions You Need To Ask Your Insurer Before Buying Critical Illness Insurance

A critical illness insurance plan is a type of insurance that offers the policyholder a payout if they are diagnosed with any of the critical illnesses that are covered by the insurer. Critical illnesses generally include serious health conditions such as cancer, cardiovascular diseases, kidney failure, Alzheimer’s disease, Parkinson’s disease, loss of limbs, and coma, among others. 

As one can imagine, being affected by a critical illness can truly be emotionally and financially devastating. Quite often, the patient is left unable to work anymore. If they have been the breadwinner for their family, the onset of a critical illness can lead to a financial crisis at home. Having a critical illness insurance plan can truly help you tide over the difficulty of the situation. The lump sum payout that you receive can be used to cover any existing gaps in your health insurance as you receive life-saving treatment. The payout may further be used to help your family pay their bills to keep food on the table and a roof over their heads.

Given the importance of critical illness insurance, it is extremely necessary that you choose your coverage wisely. You need to sit down with your insurance consultant or agent and ask them certain questions so that you can be sure of the details of the policy you are buying and the extent of protection you can expect. To that effect, here are 4 important questions you need to ask your insurer before buying critical illness insurance. 

Question 1:  What are the diseases covered in my policy? 

It is extremely important to know the diseases the insurer will cover before buying critical illness insurance. It is always advisable to compare insurance providers and opt in for the plan that covers the highest number of diseases and surgical procedures. 

Question 2:  What are the exclusions that I should note in my critical illness coverage?

All critical illness insurance plans generally come with a set of exclusions too. These exclusions can vary slightly between insurance providers so, be sure to ask your insurer what their exclusions are. Insurers generally do not cover conditions arising due to self-harm, substance abuse, war, and adventure/sports activities.

Question 3: What is the waiting period before my coverage comes into effect?

Your critical illness insurance plan will usually have a waiting period that starts from the date the policy gets issued. You will not be able to make any claims during this pre-decided waiting period. The waiting period can differ slightly between insurance providers so, be sure to ask your agent or insurer how long their specific waiting period is. 

Question 4: Is there a ‘free-look’ period?

These days, many insurance companies offer a ‘free look’ period during which the policyholder can review the terms of coverage. If the policyholder changes their mind and decides to cancel their coverage, they can do so during this period and receive a refund of their premium minus any charges already incurred by the insurance provider. This free look period is generally given for around two weeks from the date the policy commences, but this duration can vary between insurers. 

These are some of the most important questions that you need to ask your insurer before buying critical illness insurance. Do make sure to do proper research so that you get the best coverage suited to your needs. Take care.