What is critical illness cover and how does it work?


The change in lifestyles of people in the digitized world has made them susceptible to several diseases and ailments. You must have heard of critical illness insurance policies, that the reputed insurance providers offer. The policy provides a lump sum coverage to the insured person, when he or she is diagnosed with a defined illness during the policy term. You might need a critical illness policy, even if you are holding a comprehensive health insurance policy. At times, the expenses for treating specific ailments like heart attacks, brain stroke or kidney failure may be too high. Particularly, for senior citizens, covering these expenses turn out to be a difficult task, even if the person remains covered with a comprehensive policy. You might buy a critical illness policy from a reputed insurer to keep yourself financially secure against huge medical expenses.

How do critical illness policies work?

Well, you should be knowing that critical illness policies are different from normal health insurance covers and mediclaim policies. Under a critical illness plan, the policyholder receives a lump sum about from the policyholder. Some serious ailments remain listed in the scheme. In case the policyholder suffers from any of these, the benefits can be obtained. In case you are looking for a critical illness cover for yourself or any of your family members, you can check out the schemes offered by the insurers. The amount that you receive may be used to complete the payment for the cost of treatment and other recurring costs. In case you want to pay off the debts for treatment, you can use this money.

How much coverage to seek for critical illness?

You must have noticed that healthcare costs are rising over the years. Therefore, you need to make sure that the overall cost of critical illness should be touching several lakhs. For middle-class families, it may not be possible to arrange for large amounts immediately. They need to break the present investments or borrow money from others. In most of the cases, the earning capacity of the family is rendered by the critical disease. Therefore, it is advisable to purchase a critical illness coverage after considering factors such as family history, job, medical costs and age. It may happen that you need a critical illness policy as the coverage that the comprehensive package offers gets exhausted.

Who needs a critical illness coverage?

A critical illness coverage may be required by a variety of people for different reasons. In case you are single, you may need a critical illness cover to make sure that the mortgage gets paid. People having children may also buy a critical illness insurance policy to ensure that they have the necessary flow of funds, if they are unable to work due to poor health conditions. Besides, when you recover from a critical illness, certain extra expenses may be involved. The policy will provide coverage for all these expenses.

It appears that most people can benefit from critical illness policies. Visit the websites of the reputed insurers to know more about these plans.