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Critical Illness Insurance Health Plan: How To Find An Appropriate Coverage Amount?

Updated On Sep 03, 2022

Many people may not be aware of what has to be done to prevent succumbing to their sedentary habits. These circumstances have made critical illness insurance coverage very necessary for everyone. If you are given a critical illness diagnosis, it serves as a financial safety net. Insurance against certain critical illnesses is known as critical illness insurance.

If you are diagnosed with any of the serious diseases while the policy is in effect, the insurance company will pay you the sum promised. However, unlike with health insurance plans, you are not required to provide hospital bills, treatment costs, etc. in order to get the sum promised. To find out more on critical illness health insurance plans, read on.

Critical Illness Insurance Health Plan: How To Find An Appropriate Coverage Amount?

Factors Taken Into Consideration While Deciding The Insured Sum For Critical Illness

Following are some of the important factors one should take into consideration while deciding the insured sum for critical illness -

  1. Age - Given the declining ratio of our life expectancy years and the fact that our vulnerability to various illnesses and disorders grows with age, it is likely that we have to pay a greater premium as we become older. Therefore, it should be remembered that purchasing a critical sickness policy as one approaches 60 years old will be more expensive and challenging to do. It is advised in these situations to wait a few years before choosing a senior citizen insurance policy since it will be cheaper and offer more advantages in addition to critical illness coverage.
  2. Inflation - The quantity of critical illness insurance you select should be most favourably impacted by anticipated or foreseeable economic inflation. If saving your dependents from financial ruin is your main goal, you should choose a bigger critical sum insured. Despite the fact that this would result in higher monthly premium payments, the lump sum payment you get will still be valuable given the projected increase in living expenses. In these situations, choosing a level cover under a critical illness insurance is a wise decision because it guarantees that your monthly coverage amount stays the same and that your payouts won't diminish over time.
  3. Coverage - Consider if the critical illness insurance you choose includes medical coverage for all main ailments while making your decision. Critical diseases including cancer, stroke, respiratory problems, tumours, and cardiovascular disorders have extraordinarily expensive treatment and recovery costs, and many patients are forced to halt their treatment midway through because they are unable to pay their medical bills. In order to provide financial protection against all main diseases, the critical illness insurance that you select should be adequately broad and adequate.
  4. Right Fit- Knowing what the firm is costing you for is the best method to determine how much coverage you require. It will be simpler to assess how much protection you want if you are aware of the perks given. Be mindful of things like the cost of treatments, ongoing expenses, and potential future debt in the event of income loss. The amount covered for older people should be larger because chronic illnesses are more likely to affect them. Also consider current protections like Mediclaim or a personal injury and disability insurance coverage.
  5. Financial Standing - The entire purpose of obtaining critical illness insurance is to lessen your financial burden and use the funds provided by the insurance provider to cover all of your medical costs. You should consider your assets when picking a critical illness policy to ensure that the money promised to you for medical care is adequate for you to avoid liquidating your assets or property. It is usually prudent to get the greatest level of coverage if there are no assets to protect you from financial insolvency. 


The approach used to determine the critical illness insurance cover is indeed not entirely error-free, but this is only because we have taken into account a number of future assumptions. However, it offers you a general concept of how to go about doing it.

Also read: Does Care Health Insurance Plan Provide Coverage For Pre-Existing Diseases?

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This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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