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Health insurance is a crucial investment in current times. Not only does it provide financial coverage for medical treatments, but also mental peace knowing a safety net for medical exigencies exist. In addition, it also helps safeguard other investments that otherwise you would be required to liquidate in case a medical emergency arises. Thus, it is essential to buy health insurance in present times. You simply cannot undermine the importance of one.
One type of health insurance policy to keep in your insurance arsenal is a critical insurance policy. This policy provides a financial shield for in times of life-threatening ailments like cancers of different intensity, heart attacks, coma, kidney failure which needs regular dialysis, major organ transplant, liver disease (end-stage), etc. While these ailments can be mentally taxing, it can also be financially draining due to its steep treatment costs. Thus, a critical illness insurance plan helps provide financial support in these times by providing lumpsum pay-out of the sum assured and is classified as a defined benefit policy.
When selecting any insurance plan, it is essential to know the policy specifics. Not just that, but also the terminologies used. For that reason, you must first understand the different terminologies used in the process. Here are some terminologies surrounding critical illness insurance that hep in a concrete understanding of the policy terms –
Critical illness
Critical illness is the specified ailments that the insurance policy covers. Every critical illness plan has a list of illness defined in the policy terms that you must check. *
Critical illness benefit
Critical illness benefit is the sum assured of the policy which the insurance company compensates on diagnosis of the specified ailment. Unlike a standard health insurance plan, critical illness policies make a lumpsum pay-out of the sum assured on diagnosis of the illness. *
Survival period
It is that duration which the insured individual must survive after the first diagnosis of the illness. Only after such a duration, the insurance company makes a lumpsum pay-out of the compensation amount. Generally, 30 days is the duration for which the diagnosed individual must survive for the compensation to be paid. *
Waiting period
It is that period for which the insured individual must wait for the critical illness coverage to begin. This period is generally 90 days from the commencement of the policy cover; however, it may vary among insurance companies. *
Pre-existing conditions
Pre-existing ailments are those illness that already existed at the time of policy purchase or for which the policyholder has received treatment or advised treatment 48 months prior. *
Nominee
Nominee is the individual designated by the policyholder to receive any proceeds in the event of death of the insured individual. *
Policy period
Policy period refers to the time for which the coverage is active. It is the date from the commencement of the policy coverage to its expiry, both days inclusive. *
Network hospital
Network hospital refers to a medical facility associated with the insurance company where cashless health insurance can be availed. Such medical facility is among the list of different hospitals empanelled with the insurer that makes cashless treatment possible. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.