Critical illness insurance is an important form of coverage, yet one that is often lacking in most people’s insurance portfolios. As we all know, critical illnesses such as cancer are on the rise these days. Severe diseases that were once mainly hereditary are now developing a the result of lifestyle causes such as smoking, sedentary desk jobs, bad diet habits, and so on. As such, it is important to stay protected with insurance before the unforeseen happens.
Many people feel that a standard health insurance policy will provide enough coverage if they are diagnosed with a critical illness. However, the expenses that arise from these illnesses often go beyond the coverage of your health insurance policy. For instance, your health insurance policy will cover hospitalisation costs, certain day care procedures, and so on. However, it will not help you afford a domestic worker to care for you at home nor will it help you pay the rent if you have to stop working for a while. This is where a critical illness policy can come in handy.
Critical illness insurance offers a lump sum payout when you are diagnosed with any of the critical illnesses covered in the policy. The lump sum amount can be used for any expense that you deem fit. You may use it to buy groceries, keep a full-time nurse at home, afford the co-payment in your health insurance, and so on. That kind of coverage can truly help you protect your hard-earned savings in the bank.
However, many people still avoid taking critical illness insurance as they feel the premiums are an extra expense.
If you too feel the same way, don’t worry as this article will help you out. Read on to discover 3 smart ways in which you can save money on your critical illness policy premiums.
1. Use aggregator websites to compare coverage
This might seem like one of the most obvious tips out there, but it is often overlooked as people are still in the habit of buying insurance from agents. One of the best ways to get a good premium rate on your critical illness insurance policy is by buying your coverage online. Use aggregator websites to compare plans and choose the most affordable option. However, always go for ‘affordable’ and never ‘cheapest’. This is because your policy should strike the balance between being cost-effective and offering good coverage for a wide range of illnesses and procedures.
2. Choose between standalone coverage and rider
You can either buy critical illness insurance as a standalone policy or as a rider. The option that you choose will have quite an impact on the premium you pay. Generally, if you opt for critical illness insurance as a rider, you may have lower premiums. This is because the premium stays the same for the entire tenure of your main policy to which critical illness cover has been added as a rider.
On the other hand, if you buy a standalone policy, your premiums may keep getting older.
Now, that does not mean you should immediately opt for a rider to save money. Remember that critical illness insurance riders often cover a limited number of diseases whereas standalone policies cover far more. So, you need to read the policy documents carefully to ensure that the diseases you want covered are included. Else, paying for the rider would be a waste of money.
Ideally, you need to compare the costs and coverage of riders and standalone critical illness insurance plans from various insurance providers. If you feel that the rider offered by a particular insurer will suffice to cover an illness you want coverage against, then go ahead with it. However, if you want more wholesome coverage against a wider array of dread diseases, opt for a standalone cover but try to save money by comparing the premiums for standalone policies between providers.
3. Select the right cover limit
Finally, your premium will be impacted by the cover limit you choose. Critical illness insurance payouts can go as high as Rs 1 crore, but you do not have to always opt for the maximum amount. Choose the payout amount wisely depending on your lifestyle and expenses. Calculate your current debt and how much money it takes to run your home each month. The figures you get should be able to help you understand how much of a payout you would need to be financially stable if you get affected by a critical illness.
Remember that being affected by a critical illness might see you need to take a few years off from work. Or, you may have to stop working completely. Keep this in mind while calculating the payout you would need.
Do make sure to get critical illness cover for you and your loved ones as soon as possible. Good luck!
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