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Should Seniors Have A Separate Critical Illness Plan?

Critical illness insurance plans can provide financial protection for seniors against costly medical expenses, allowing them to focus on recovery.

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Meghna Maiti
May 8, 2023
Should Seniors Have A Separate Critical Illness Plan?

Critical illness insurance plans can provide seniors with financial protection if diagnosed with a critical illness. These plans help cover the costs of treating severe medical conditions like cancer, heart disease, and stroke. Generally, these plans cover a pre-defined list of illnesses and medical conditions and pay out a lump sum benefit to the policyholder upon diagnosis of a disease. The policy covers medical expenses, lost income, or any related expenses arising from the illness.

Critical illness insurance plans for seniors typically have a maximum age limit for enrollment, usually between 60 and 75 years, depending on the insurer. The coverage amount and premium rates may also vary depending on the policyholder’s age and overall health status.

Explains Parag Ved, president and head of Tata AIG General Insurance: “The inception of the novel coronavirus has clearly shown that unexpected medical emergencies or any terminal illnesses can step in at any point in time and severely impact the physical, emotional, mental, and financial conditions of individuals and their families. The absence of an appropriate insurance plan results in huge costs out of pocket, depleting savings set aside to accomplish future financial goals.”

“The increased susceptibility to critical illnesses due to sedentary lifestyles today further accentuates the need for full-fledged health insurance plans. A conventional health insurance plan offers limited coverage and falls short of other incidental medical expenses. With critical illness plans, policyholders are well-positioned to meet the medical expenses incurred during treatment without parting with hard-earned savings,” adds Ved.

Should Seniors Have A Separate Critical Illness Plan

According to experts, seniors should consider having a separate critical illness insurance plan besides regular health insurance coverage. It is because it can provide additional financial protection in the event of a serious medical condition, such as cancer or heart disease, which may require costly medical treatments and constant care.

While health insurance plans generally cover medical expenses related to hospitalization, surgeries, and other medical procedures, they may not cover all the costs associated with a critical illness. For example, a critical illness may require specialized treatment, medications, or home healthcare services, which a standard health insurance policy may not cover.

By having a separate critical illness insurance plan, seniors can help ensure they have the financial resources to cover the additional expenses associated with a severe medical condition. This can help provide peace of mind and relieve the financial burden on seniors and their family members.

Things To Keep In Mind:

Before opting for a separate critical illness insurance plan for seniors, there are several important things to keep in mind:

Pre-Existing Conditions: Some critical illness insurance plans may not cover pre-existing medical conditions. It’s important to review the terms and conditions of the plan carefully to ensure that it covers any pre-existing conditions that the senior may have.

Age Limit: Most critical illness insurance plans have an age limit for enrollment, which may vary between insurers. Seniors should check the plan’s age limit before enrolling to ensure they are eligible for coverage.

Waiting Period: Many critical illness insurance plans have a waiting period before the benefits are payable. Seniors should check the plan’s waiting period before enrolling to ensure that they are comfortable with it.

Coverage Amount: The coverage amount of critical illness insurance plans may vary between insurers. Seniors should carefully evaluate their medical needs and expenses to determine the appropriate coverage amount.

Premiums: The premiums for critical illness insurance plans may be higher for seniors, depending on their age and overall health status. Seniors should carefully evaluate the plan’s premiums to ensure they are affordable.

Exclusions: Critical illness insurance plans may have certain exclusions, such as for specific medical conditions or treatments. Seniors should review the plan’s exclusions carefully to ensure they are comfortable with the coverage.

Claim Process: It’s important to understand the claim process for the critical illness insurance plan, including any documentation required and the timeline for filing a claim.

Overall, seniors should carefully evaluate their medical needs, expenses, and the terms and conditions of the critical illness insurance plan before enrolling to ensure that they have adequate coverage and are comfortable with the policy. In addition, they must weigh all pros and cons and, if necessary, consult a financial planner before opting for the right policy for their needs.

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