How to choose between Disease-Specific and Critical Illness insurance plans

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How to choose between Disease-Specific and Critical Illness insurance plans

It’s never easy to select the ideal medical insurance plan with insurance firms offering a plethora of options to choose from, making the task more daunting. Adding to the are reports which highlight the fact that many ailments that were frequently encountered post 50 years of age have now begun to attack as early as in one’s 40s — only because of the stressful and unhealthy lifestyle that most follow. 

GOQii — a fitness technology platform — in its reports that were previous has stated that in India, three people out of 10 over the age of 30 suffer from a lifestyle disorder that escalates to serious health problems. The information released by World Life Expectancy suggests that there are over 30 million heart patients in India alone, while cancer, stroke, lung diseases, and heart disorders continue to remain the causes of deaths. 

Without a doubt, innovative advancements in medical sciences have increased the chances of success; it becomes equally important for one to be financially prepared to avail the facilities. No wonder, it is imperative to prepare oneself for exigency and the best alternative available is to buy an insurance cover in place. Considering the given scenario, Disease-Specific (DS) and Critical Illness (CI) insurance plans appear to be some of the best available choices. 

This is everything that you must know about every one of these insurance plans that might allow you to pick the right one for you and your loved ones. 

Disease-Specific Plan

As the name itself suggests, a plan offers cover for the cost of treatment of disease at all stages including diagnosis stage to innovative treatment. The key highlight of a disease-specific plan is that it waives premium of those insured under certain conditions. Also, plans are comparatively less expensive than illness covers since they are just designed for individuals looking for insurance to cover a particular disorder they might feel they are prone to. People who have a family history of a particular critical disease must buy a plan along with a health insurance plan. 

What’s covered?

A disease-specific plan provides coverage for a particular disease including cancer, diabetes, kidney ailments hypertension and recent dengue at all phases — advanced or early. A plan can help in saving significantly on premium and takes care of the financial burden in the event of a life-threatening circumstance. The insured is paid a lump sum amount or the health care expenses are indemnified. 

How much to be insured?

If you need disease-specific insurance, it is very important to understand what disease you wish to get insured. Although normally, an Rs 10-lakh sum assured is sufficient for most diseases, you might still go for a higher amount to be emotionally and financially secure. As with investing, educating yourself is vital to making the proper option. 

The waiting interval

The waiting period in case of the disease-specific goods is completely waived. 

Here’s a competitive evaluation of the annual premium for a disease-specific cover of Rs 10 lakh for a 30-year-old non-smoker male residing in a metropolitan city. 

Critical Illness Strategy

The critical illness insurance program is another financial plan designed to ensure some critical ailments including stroke, cancer, heart attack, organ transplant, acute burns and many more. Underneath the CI plan, the insurer pays a lump sum amount — equal to the sum insured — to the insured on acquiring any of those ailments mentioned above. The whole lump sum benefit can be used for the payment of the price of treatment and care and even pay off any debt if any accepted during the treatment. 

What is covered?

The number of critical illnesses covered by the insurers may vary. However, most insurers generally pay 8 to 20 critical illnesses, including aorta surgery, stroke, heart attack, organ transplant, kidney failure, cancer, heart valve replacement, paralysis, loss of limbs, and loss of speech. The coverage amount is anywhere from Rs 1 lakh upwards. 

How much to be insured?

It is understood that the cost of critical ailments typically crosses lakhs. Industry experts suggest that one must consider buying the policy depending on a couple of significant factors like family history, type of occupation, medical inflation, and age. In general, it is advised to have a cover of above Rs 10 lakh considering the healthcare expenses.  

The waiting interval

The policyholder needs to survive for 30 days after the diagnosis of the critical illness to create a claim. However, some companies provide policies with zero or 28 days surviving interval. Talking about the waiting period, it is mostly the initial 90 days after the coverage is issued. Claims made within 90 days are not covered under the coverage. 

Here’s an evaluation of the premium to get a CI cover of Rs 10 lakh for a man residing in a metropolitan city. 

How to choose between Disease-Specific and Critical Illness insurance plans

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