Critical Illness Cover- a perfect recipe for success
Critical illness cover is not like your simple life insurance policy that provides you coverage against uncertain events like death.
It provides you cover for a specified pre defined illness as being mentioned in the plan. The insured is paid a Lumpsum amount if critical illness is diagnosed. Once the Lumpsum tax free amount is paid, the plan ceases to exist.
Things to ponder in critical illness cover
Before purchasing critical illness insurance, you must take into account following factors.
- How much cover an individual require
- How many critical diseases are covered?
- Is it okay to consider critical illness with coverage continuation option?
- Is it a plain vanilla type critical illness insurance or it has some additional riders?
- Whether it is standalone or top up policy
- Can you increase sum assured?
How much cover an individual require?
Critical illness cover provides a rule of thumb that is approximately you need 2 to 3 times of income plus additional debts. For instance, Rajan is earning 3 lacs, then his cover should be 9 lakh.
How many critical diseases are covered?
It is essential to choose the policy that covers a range of illness. You should never get a policy that is cheap; study the specifics of the policy very carefully. It is also crucial to choose a cover that does not proffer you lots of terms and conditions. Simple vanilla type critical insurance provides coverage for ac heart attack, cancer, and stroke. More advanced plans provide cover for additional ailments.
It is advised that you should buy a cover that proffers protection against range of critical diseases.
Is it okay to consider critical illness with coverage continuation option?
Critical illness with continuation option means that your cover won’t cease after a single Lumpsum payment. So, select a plan that has coverage continuation option for various diseases because if you go to the market new critical insurance plan will come at an exorbitant rate.
Is it a plain vanilla type critical illness insurance or it has some additional riders?
Do consider if you are getting simple critical illness insurance or a plan with additional benefits like Death Benefit and Total & Permanent disability benefit plan.
- What is benefit of getting rider?
Death Benefit- In the event of untimely death of an individual during the policy’s term, the sum assured will be paid to your nominee.
Total and Permanent disability benefit- If this rider is attached to your policy, you’ll get sum assured in case you suffer from permanent disability.
- Whether it is standalone or top up policy
A top up policy means purchasing life insurance policy along with critical illness cover and health cover. If a policy is taken as a standalone policy, as the life insurance cover terminates so, will the critical illness cover.
- Can you increase the sum assured?
Choose a cover with an option to increase sum assured at the later point of time.
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