Life insurance policies are products designed to help individuals protect themselves and their families during unfortunate events. Many insurers in the country have started allowing customers to buy life insurance online to help them purchase a suitable plan from the comforts of their homes.
Usually, life insurance policies are an easy purchase for healthy individuals and do not have any pre-existing conditions or diseases. Even insurance policies like comprehensive life insurance plans are easy purchases for healthy individuals.
However, if you or any individual you know is already suffering from a critical illness, purchasing a life insurance policy may be a bit strenuous. This is because insurance companies have strict terms and conditions for life insurance policies for an individual with a critical illness.
Can an Individual with a Critical Illness Purchase a Life Insurance Policy?
In most scenarios, the answer is yes. Suppose you’re an applicant with a pre-existing critical illness, and you fulfil all the requirements that the insurance company mentioned. In that event, you’ll be able to get an insurance policy.
However, the insurance company should be aware of the risk involved in selling the life insurance cover to the policyholder. The risk is generally on the higher side for individuals who have a critical illness, as there is a chance that they may pass away during the policy’s term.
Therefore, when providing protective life insurance cover to individuals with a critical illness, most insurance companies have specific regulations and rules. Along with this, certain insurers also provide critical illness insurance to help customers.
Is Critical Illness Insurance the Same as Life Insurance?
A life insurance plan is designed to help you with all the situations covered under the policy. However, critical illness insurance is an insurance product designed to help policyholders deal with life-threatening diseases. You have the option of either getting life insurance with additional critical illness cover or a standalone critical illness insurance.
Critical illness insurance assists you in dealing with the medical expenses required to deal with the illness. A critical illness insurance policy will help you purchase the insurance plan solely for a critical illness cover. While the critical illness insurance may provide coverage for life-threatening diseases, they won’t be beneficial if you pass away due to an accident or other such events.
Which Diseases are Considered Critical Illnesses?
Insurance companies like Tata AIA life insurance provide the entire list of critical illness diseases on their websites. While the entire list of the illnesses may be different for different life insurance companies in India, there are a few illnesses that most insurers cover.
Some examples of critical illnesses:
- Heart disease
- Kidney failure
- Organ transplants
Things to Consider During Insurance Policy Purchase when Diagnosed with a Critical Illness
Purchasing insurance plans when you’re healthy is an easy process. However, if you or anyone you know suffers from a critical illness, the process involved in purchasing life insurance is a bit different. While you can buy a critical illness insurance plan, it is important to know a few things.
Here are some factors you must to consider before purchasing the insurance plan:
- Disclose correct information:
You must disclose the information about your critical illness to your insurance company before initiating the purchase process. If you don’t reveal this information, your claim can be invalid when you reach out to the insurance company for the final settlement. While the details of your illness may be unique, they help the insurer understand the extent of risk involved in providing you with insurance coverage. Usually, most insurance companies would require the information listed below:
- The date of the diagnosis.
- The severity of the illness.
- The type of treatment you are receiving.
- Premium amount:
If you’re diagnosed with a critical illness, the premium amount on the insurance policy will be a bit on the higher side. With a critical illness, the probability is higher that the insurance company will be required to pay out the insurance coverage to the policyholder. Therefore, to deal with the increased exposure to risk, insurance companies charge a high premium on the insurance policy. However, you may get a low insurance premium if you’re declared healthy after recuperating from the critical illness. Therefore, if you approach the insurer to buy an insurance policy, you must ensure your medical records are updated.
- Waiting period:
If you have a history of a critical illness, most insurance companies offer a waiting period that you have to get through before buying the life insurance plan. For instance, if you’ve just suffered a heart attack, you may only be eligible for purchasing an insurance plan after approximately six months of the attack. The waiting period can differ for different insurance companies.
Thus, getting an insurance policy may be a bit difficult but not impossible if you’re diagnosed with a critical illness. If you follow the steps of your insurance company, purchasing a life insurance policy with a critical illness will not be a difficult task. Along with this, it will help you get the financial coverage you and your family needs during an unfortunate event.