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Insurance Plans India 387 views August 26, 2021
The expensive treatment of critical illnesses is covered adequately through both life and health insurance plans. Yes, the critical illness package mostly comes as a supplement to these plans and, therefore, one has to pay the extra premium. While many know this fact, they don’t know how the extra payment is made to the insurer. Similarly, people also develop other preconceived notions only to lose out on the opportunity to make the most of it. Keeping in mind the same, we will help you remove some of the myths that you may have now or develop later regarding the critical illness insurance plan. Let’s read about such myths.
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Misconceptions prevail on various aspects concerning critical illness insurance plans, such as the premium payment, payout time, and much more. We have listed out some for you to stay away from.
Most believe that the premium payment for critical illness insurance plans will happen separately. But that’s not true! The insurer will combine the premium of the base plan and critical illness rider and the policyholder needs to pay the consolidated sum on the due date.
Since both health insurance and critical illness insurance plans are related to coverage for health conditions, a lot tend to interchange the two. But there’s a difference between the two. In critical illness insurance, a lump sum payout is made upon the diagnosis of a disease. Whereas, in a health insurance plan, you will get covered for the expenses incurred on the treatment. While a critical illness insurance plan is called a fixed benefit product, a health insurance plan is an indemnity product.
As told above, the lump sum payout happens upon the diagnosis of a critical illness. But most think that the payout happens instantly, which is wrong! The disbursal happens only when the insured person survives for about a month post the diagnosis. This is called the survival period.
Most carry the wrong impression that a critical illness insurance policy applies to all life-threatening diseases. The insurance company specifies a list of critical illnesses for which you will get the cover. The number of such critical illnesses can be anywhere around 15. Let’s check the illnesses that find mention in most critical illness insurance plans.