Medical inflation has been rising in recent years, resulting in higher healthcare costs. Studies project an increase in medical cost trend to 6.5% in 2022, which means medical expenses will rise by 6.5% this year. These costs will be even higher for the treatment of critical illnesses. Critical illness insurance policies like the one offered by Care Health Insurance act as a safety net in the time of medical emergency. These critical illnesses include cancer, coma, catastrophic burns, etc. The procedure to purchase these policies differ from company to company.
This article discusses the steps involved in buying critical illness insurance.
Step 1: Determine the adequate cover
Purchasing health insurance alone is insufficient. The key is to buy a policy with an adequate sum insured to cover your financial needs. The cover amount should be sufficient to meet all the expenses that would arise from such a diagnosis. The process of buying critical illness insurance plans, therefore, starts with determining the right coverage amount. The factors that one should bear in mind as they determine the adequate cover amount include risk factors, family medical history, savings, premiums, etc.
Step 2: Determine the premium rate
Premium refers to the amount periodically paid by the policyholder to avail the critical illness insurance policy benefits. The premium should be affordable because non-payment could lead to the discontinuation of the policy. Most purchasers shortlist critical illness insurance plans based on premium rates. The key is to balance the cover and the premium rates by opting for the maximum affordable premium. One can also use an online premium calculator to get a quote.
Step 3: Opt for the shorter waiting period
A waiting period is when the policy is purchased to the time when one can be making claims. Every insurance company has a specific waiting period from the date of purchase, and only after this can any claims be made under the policy. This period could be anywhere from 30 to 90 days or more. Evaluate how imminent your need for the cover of a critical illness insurance policy is. This can help you choose the policy with a lesser waiting period.
Step 4: Consider expenses covered and exclusions
The expenses covered and not covered by the policy should be considered. Take note to read the list of critical illnesses covered by critical illness insurance plans offered by the insurance company you have shortlisted.
Step 5: Study the claims process
If the claims process is very complex and challenging to navigate, it will make the entire purpose of the policy difficult. This is why it is important to study the claims process. The quicker and simpler the process, the better. This study should also cover the companies’ Claim Settlement Ratio (CSR). CSR refers to the ratio of the claims settled to that raised in a year and reflects the insurance company’s reliability. The best critical illness insurance plans have the simplest claims process and the company offering the plans has high CSR.
Step 6: The actual purchase
The process of actually purchasing the desired critical illness insurance is fairly simple. All you have to do is visit the insurance company’s website and choose the desired critical illness insurance plan. Then click on the “Get Quote” option on the website and enter all the details asked for. Next, customize the policy according to the metrics in the above steps. Lastly, choose the mode of payment for a premium that is most convenient. In following these four simple steps, the new policy will be purchased, and all the documents will be sent on the email ID provided.