Factors one should consider when buying critical illness insurance cover

livemint.com:

₹5 lakh can go for a insurance cover of around ₹20 lakh. It can help one sustain financially for a few years in case of loss of job due to critical illness. While buying a higher cover sounds better, it can get really expensive.

Also, the insurer might restrict you from buying a very high critical illness cover depending upon its underwriting norms and your medical condition. Common critical illness products in the market cover around 15 to 20 illnesses and so is not comprehensive. These plans cover serious illnesses like cancer and renal failure.

But they do not cover illnesses such as Alzheimer’s or Parkinson’s disease . But some insurers have now launched critical illness products that cover 64 or even up to 99 illnesses. These are obviously more comprehensive policies and provide coverage against critical illnesses.

But such plans can be expensive. All critical illness insurance products have layered benefits where the claim amount paid by the insurer depends on the severity of the disease. A certain condition might make a policyholder eligible for just 25% or 50% of the initial cover amount.

A certain more severe condition of the same illness might pay 100% of the cover amount. This will entirely depend on the diagnosis of the illness where the severity would be mentioned. So, it becomes important to read the product brochure and other sales material in detail to know what it offers.

This will ensure that subscribers know exactly what they are going to buy. Some sales material might not contain all the details and list of what is covered because of the complex nature and long list of illnesses covered under the plan. But the policy document contains the entire list of coverages and exclusions in detail.