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Exploring Waiting Periods and Coverage Limits in Critical Illness Insurance

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Insurance for critical illness is a comprehensive insurance plan which helps ensure the all-around coverage of your healthcare expenses. Thus, most individuals consider buying this policy. This is also why, in 2022, the global critical illness insurance market was valued at $358.6 billion. Moreover, it is expected to reach $735.63 billion by 2032.

These numbers depict people realising the importance of insurance critical illness and entrusting their funds to safeguard themselves. However, these plans also have certain conditions, like waiting periods and coverage limits. Read the article below to learn in-depth about them.

What is Critical Illness Healthcare Coverage?

Critical illness healthcare coverage is a type of insurance that provides financial protection in case the policyholder gets diagnosed with a life-threatening disease. It works in the following way:

1. Getting Coverage

It starts by buying insurance for critical illness. One must pay a monthly or yearly fee called a premium to avail of its benefits.

2. Diagnosis

The policyholder’s condition must be diagnosed by a doctor, which must fall among the criteria of critical illness. Moreover, one must also meet the terms and conditions of their policy to get a payout.

3. Filing a Claim

Now, the policyholder or their family members must contact the insurance company to file a claim. Then, the insurance company will run its approval tests. This involves checking the diagnosis reports and the credibility of the diagnosis.

4. Approval

Once the claim gets approved, the insurance company pays out a lump sum of money. The policyholder can use this money to pay medical bills, living expenses, etc.

What are the Features of Critical Illness Healthcare Coverage?

Critical illness insurance has several important features that provide financial support when a person faces a severe health issue. Some of its key features are:

1. Flexible Fund Usage

The money received from such an insurance plan can be used in any way by the policyholder. No matter if it is for mortgage payments, treatment bills, or daily living costs.

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2. Renewable Policies

Some critical health policies are renewable in nature. This allows the policyholders to continue coverage after the initial term. However, the premium may increase with age.

3. Policy Term

Critical illness coverage is typically provided for a specific term. This period is fixed depending on the insurance plan and provider (e.g., 10 or 20 years). Once the term is up, the policy may need to be renewed or might expire.

What is the Waiting Period Under Critical Illness Healthcare Coverage?

The waiting period in critical illness healthcare coverage is a specific period of time after buying the policy during which you cannot make any claims. The length of this period depends on the insurance policy. However, usually, it is around 30 days. 

One must wait for this given time to take benefit of the policy’s coverage. This waiting period is in place to prevent people from buying insurance right before they expect to be diagnosed with a critical illness. 

What is the Coverage Under Critical Illness Healthcare Coverage?

Critical illness healthcare coverage offers various kinds of financial support when a person is diagnosed with a severe illness. Some of the major expenses it covers are:

1. Lost Income

Suppose the critical illness prevents the policyholder from working. In that case, this insurance policy provides financial support by replacing a portion of the lost income during recovery.

2. Daily Living Expenses

Critical illness health plans also cover everyday living expenses like groceries, utilities, and other necessities. This makes it easier for the policyholder to maintain their standard of living while dealing with the illness.

3. Travel and Lodging

The critical illness may require the policyholder to travel for specialised medical care. In that case, such a coverage plan can help with travel and lodging costs, reducing the financial burden of seeking treatment outside their local area.

What are the Inclusions and Exclusions Under Critical Illness Healthcare Coverage?

Inclusions and exclusions vary from one policy to another. Thus, it is crucial to thoroughly review the policy documents. To provide a general idea, here is a simplified critical illness insurance list of common inclusions and exclusions: 

 

Inclusions  Exclusions 
Cancer  Pre-existing conditions 
Heart attack  Self-inflicted injuries 
Organ transplants  HIV/AIDS 
Kidney failure  Substance abuse 
Paralysis  Certain congenital conditions 

Conclusion

Health insurance policy for critical illness is a financial safety net that provides the policyholders and their families the liberty to not worry about expenses when facing serious health conditions. However, one must be aware of the terms and conditions of these plans to make the most out of them.

If you are someone looking for critical illness insurance in India, then rely on none other than Niva Bupa Health Insurance. They have a hospital network of more than 10,000 hospitals and an efficient 30-minute claim processing timeline. 

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