Health insurance is your safety net but also a perplexing purchase decision. There are myriad plans to choose from. With the liberty in selecting them, it may not be clear how to differentiate between them.

With policies now available to purchase online, it can be easy to compare and make a smart choice. Health insurance premium calculator is a nifty tool that can help you distinguish considering the necessary parameters.

Insurance Cover

Any major ailment can not only be traumatising for the patient but also for its family. Say, for example, cancer. Not only is the treatment unlike ordinary, but also after the treatment, the patient has to undergo lots of post-treatment procedures. It further has a huge financial drain on the savings that can have long term financial impacts. So, availing a critical illness insurance policy comes handy. It can help in providing coverage against life-threatening diseases.

The policyholder receives a lump sum payment that is paid on diagnosis of the ailment as mentioned in their policy document. It should not be confused with a standard health insurance cover as it has different payout as well as features. Let us look at some points to check when buying critical illness insurance.

Sum assured

Sum assured is the maximum amount that is paid by the insurance company. Depending on the ailment diagnosed, the insurer pays out a certain portion of the sum assured or the entire sum. Ensure that the sum assured is high enough that it can help you cover the cost of not the treatment, but also the cost of diagnosis and medication. It is a good practice to purchase a sum assured for your policy approximately five times the treatment cost.

Waiting period

Akin to a standard medical insurance policy, critical illness policy also has a waiting period. It places a restriction that claims cannot be made during this period. The waiting period under different insurance plans can range from between one month to three months as specified under the terms and conditions of the policy. The lower the waiting period, the better it is so that your policy offers coverage at the earliest.

Premium

When selecting a critical illness health insurance, selecting a policy with a lower premium is an absolute no brainer. But remember, it should not be the sole factor in deciding which policy to purchase. Combine the premium along with other factors that can help you balance price and features when buying one.

Coverage

The premiums and coverage under your policy are interdependent. A policy that charges a lower premium but naturally has limited coverage. You must find the right balance of premium and coverage to include various illnesses as well as keep the premiums affordable.

Limits

Usually there is capping on the renewability of a critical illness plan. This policy might now be renewed after a particular age of the insured. Opting for a policy with higher renewability can help secure a policy with long term coverage. Further do check the sub-limits under your policy. Various plans have a capping on the treatment costs.

It is highly recommended you buy critical illness insurance if you have a family history of the severe illness. Stay safe and stay insured!