5 Essential Tips To Buy The Best Critical Illness Policy

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

Health Insurance plans give you protection from unexpected financial expenditure that arises due to sudden illness, accidents and other health related issues. The coverage and policy premiums vary based on different parameters like age, gender, family medical history, basic health and habits of the policy holder and locational or occupational hazards, if any. Health benefits could be extended over the basic health insurance plan by certain add-on in excess to the base policy as required by individual need and preference.

Health Insurance Policies Types

In India, health insurance is broadly classified under 3 types:

  • Critical illness policy — This is different from general health insurance policy since only certain pre-specified illnesses are covered under critical illness policy rather than more general health and accident coverage. Moreover, the lump sum amount is paid to carry out treatment once the diagnosis is done decisively. General health insurance does not include certain diseases and to overcome this shortcoming, there is the need to buy the critical illness cover policy. This is an add-on or rider on top of your general health insurance policy. Some of the most common critical illnesses that are covered under this plan are heart attack, stroke, cancer, blindness, terminal illness, paralysis, organ transplant etc.
  • Hospitalization plans – This plan covers the medical and hospitalization costs of the insured. Coverage is up to the sum insured. Based on the person(s) insured under the policy, the plan can extend to single individual, all individuals in the family separately or as a family floater. For example, for a family of 4 people, there can be 4 individual health insurance policies of 1 lakh each. Or there can be a family insurance plan of 4 lakhs where each member is insured up to 1 lakh individually. They might have a family floater plan of 4 lakhs where any and all members can use any amount not exceeding a total of 4 lakhs for the entire family.
  • Daily Cash benefit plan for hospitalization – Here the insured will receive an agreed up on daily payment irrespective of the actual cost incurred during the time the person is hospitalized. If the daily pay-out is more than the actual cost of hospitalization, that works as an added income or benefit for the insured.

While shopping for a critical illness policy you need to look for the following:

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.
  • Current Financial situation – Do a homework regarding your financial position. If you can afford to face the financial challenges in case there is a critical illness, then you can go for a smaller coverage under critical illness plan. Also, keep in mind that health related expenditure are always on an upward move, so health insurance plan should be done accordingly.
  • Current health situation– Your present health condition will matter when it comes to shop for critical illness policy. Obesity, unhealthy habits of smoking and drinking pose higher risk and exposure to certain critical illnesses in future. And these add to the cost of premium exactly the same way it does for general health insurance. Taking critical cover plan early in life when you are healthy is a better idea.
  • Current Family Set Up – If there are senior citizens or aging parents in your family, it is imperative to get covered under Critical illness policy since there is higher chance that health emergency can occur and put a financial burden on you.
  • An add-on that will complement the general health Insurance policy – Your Critical illness policy should be complementing the general health Insurance plan that you already have so that when both combined, they optimise the coverage. That becomes most cost effective.
  • Go for a more comprehensive coverage – Shop for the different Critical Illness plans offered by different insurers. The list of covered illnesses varies. Make sure the plan offers the coverage for most critical illnesses. Also the terms and conditions are important to understand the inclusions and exclusion.
  • Look for Claim Settlement Ratio and No Claim Bonus – The higher the percentage of the claims settlement by the insurer, the better is your chance of getting reimbursed for your illness cover. Moreover, on a particular year, if there is no claim, then some insurers reward you with certain percent of premium. While looking for a policy, look for these from the insurer.
Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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