Critical illness insurance is an important type of coverage that provides financial protection in case you are diagnosed with a critical illness. This type of insurance can help cover medical expenses, loss of income and other unexpected costs that may arise due to a serious health condition.
When purchasing critical illness insurance, there are several factors that you need to consider. These factors will not only determine the cost of your policy, but also the level of coverage and benefits that you will receive.
Here are the top factors to consider when purchasing critical illness insurance UAE.
Coverage and list of illnesses:
Different insurance providers cover varying numbers of critical illnesses. Some policies include common conditions like cancer, heart attacks, and strokes, while others provide coverage for a wider range of diseases. Before purchasing a plan, review the list of illnesses covered to ensure it meets your needs.
Sum assured (Coverage Amount):
The coverage amount determines how much you receive upon diagnosis of a critical illness. It should be sufficient to cover:
- Medical treatments and hospitalisation costs
- Loss of income during recovery
- Lifestyle adjustments due to illness
Choosing an adequate sum assured ensures financial stability in case of a health crisis.
Premium costs:
The cost of critical illness insurance varies based on factors such as age, health condition, and coverage amount. Compare premiums from different providers to find an affordable plan that offers adequate coverage. Keep in mind that lower premiums may come with limited benefits or exclusions.
Waiting period:
Most critical illness policies have a waiting period before coverage becomes active. This period can range from 30 to 90 days after purchasing the policy. If a diagnosis occurs within this time, the insurer may not provide benefits. Knowing the waiting period helps in choosing a plan that aligns with your needs.
Exclusions and limitations:
Insurance policies come with exclusions, which are specific conditions or circumstances not covered under the plan. Common exclusions include:
- Pre-existing medical conditions
- Illnesses diagnosed within the waiting period
- Certain lifestyle-related diseases
Claim process and payout structure:
A simple and quick claims process ensures timely financial support during a medical crisis. Check how claims are processed and whether the payout is a lump sum or paid in instalments. A hassle-free claim process reduces stress when dealing with serious health conditions. Some policies offer lifetime renewability, while others have age restrictions. Choosing a plan with lifetime renewability ensures continuous coverage without the risk of losing insurance benefits at an older age.
