Critical illness cover – A Sensible Investment

At time when the insurance policies hold much importance, nearly everyone is aware of health insurance covers as well. An individual spend a considerable amount on health treatments in his life even if it a normal illness. There are too many individual policies which can broadly be categorised as indemnity covers and benefit covers. If we talk about Health insurance plans, Mediclaim falls into indemnity, which provides the reimbursement of the amount spent for treatment and Critical illness cover falls under the benefit health policies, which provides the entire policy amount irrespective whether the entire is spent on treatment or not. Let us discuss about the Critical insurance cover in detail which will make you decide and opt for the policy much easier.
Critical illness cover is related to the health conditions which are deemed as critical for example diseases like cancer, heart attack, brain tumours etc. However, the disease if critical or not is defined in detail in the policy documents according to the medical language. If we consider the case of one of the worse health disease, i.e. cancer, it may not be termed as critical illness under certain conditions especially when the same has been cured by treatment of the insured in the past.
The disease which you want to cover under Critical illness should not be existing before you take the policy and also it will not be covered if you catch the disease within 90 days of taking the policy. Moreover, the policy amount is also dependent on the survival period. The policyholder or the nominee under the policy will not get any amount if the policyholder is not able to survive a time period of 30 days after the diagnosis of the disease. To know the exact time period of survival and other related to the policy, you should read the terms and conditions carefully. You can also contact the insurance provider and clarify the policy.
You can take more than one Critical illness cover. In case of Critical illness, payment will be made by all the companies individually. Pro- rata calculation is not applicable to Critical covers. Lump sum amount will be paid even if the cost of treatment is lesser. The companies provide the amount for the treatment of disease, if the treatment costs Rs. 50,000 and the policy amount is for 80,000, the company will pay 80,000. Patient can spend the amount on treatment or elsewhere to his discretion. So, the amount of premium to be paid in this illness policy is high as compared to other policies. The renewal of the policy depends on the policy provider. Considering the needs and benefits of Critical illness cover, we can surely deem it as a sensible investment.