Debunking 7 Myths About Critical Illness Insurance

Critical illness insurance is crucial in securing financial stability during challenging times caused by severe health conditions. Despite its importance, many misconceptions persist, leading people to overlook this essential coverage.

Let’s debunk some common myths about critical illness plans to help you make informed decisions for a safer tomorrow.

7 Myths About Critical Illness Insurance

Myth 1: I Don’t Need It, I Have Medi-Claim

Many believe that their regular health insurance policy, often referred to as Medi-Claim, is sufficient to cover all medical expenses. However, there’s a significant difference between health insurance policies and critical illness insurance policies. While health insurance generally covers hospitalisation expenses, a critical illness insurance plan provides a lump sum amount upon diagnosis of specified critical illnesses like cancer, heart disease, etc. This payout can be used for non-medical expenses, such as household bills or you can even use it to seek advanced treatments abroad, which aren’t typically covered by regular health insurance.

Myth 2: I Am Healthy, I Won’t Need It

It’s a common misconception that healthy individuals are immune to critical illnesses. However, lifestyle factors such as stress, pollution, and dietary habits significantly increase the risk of critical illnesses, even for those who consider themselves fit. Furthermore, critical illness insurance policies are more affordable when purchased at a younger age and while you’re in good health. Waiting until health issues arise may lead to higher premiums or even disqualification from coverage.

Myth 3: I Don’t Have a Family History of Critical Illnesses

While genetics can play a role in the likelihood of developing certain critical illnesses, they are not the only factor. Environmental influences, lifestyle choices, and unforeseen accidents can lead to critical health conditions. Critical illness insurance policies are designed to provide financial protection regardless of family history. By having coverage in place, you ensure a safety net for unexpected medical crises, irrespective of their origin.

Myth 4: Critical Illness Plans Only Cover Hospitalization Expenses

Unlike standard health insurance, critical illness plans are not restricted to hospitalisation expenses. Upon diagnosis of a covered illness, the insured receives a lump sum payout, which can be utilised at their discretion. This flexibility is invaluable for managing costs beyond medical treatments, such as income replacement during recovery, alternative therapies, or modifying your home to accommodate new health needs.

Myth 5: I Get a Claim Immediately on Diagnosis of Critical Illness Insurance

While critical illness insurance policies provide a lump sum payout upon diagnosis, it’s important to understand the terms and conditions. Most policies have a survival period—a specific duration (often 30 days) that the insured must survive post-diagnosis to claim the benefit. Familiarising yourself with these details ensures you have realistic expectations about your policy’s benefits.

Myth 6: Critical Illness Cover is Available Only on a Standalone Basis

Critical illness insurance can be purchased as a standalone policy or as an add-on to existing health insurance. Adding a critical illness rider to your existing policy can often be a cost-effective way to enhance your overall coverage. However, evaluating your needs and consulting with your insurer will help determine the best approach.

Myth 7: I Have Pre-existing Conditions, So I Am Not Eligible for Coverage

While having pre-existing conditions may affect the terms and premiums of a critical illness insurance policy, it does not automatically disqualify you. Many insurers offer policies with specific exclusions or waiting periods for pre-existing conditions. It’s advisable to disclose all medical details honestly and work with a trusted insurer to find a policy that suits your circumstances.

Choosing the Right Critical Illness Insurance

Now that we’ve debunked common myths, it’s time to consider the right policy for your needs. SBI General’s critical illness insurance plans stand out as a reliable option. They offer comprehensive coverage, customisable plans, and transparent terms to ensure financial security during tough times. Whether as a standalone policy or an add-on to your existing coverage, SBI General’s plans provide peace of mind when it’s needed most.

Conclusion

Critical illness insurance is an essential financial tool to protect against the high costs of severe medical conditions. By understanding and overcoming the myths surrounding these policies, you can make informed decisions to safeguard your future. Don’t let misconceptions hold you back—invest in a critical illness insurance policy today and ensure a secure and stress-free recovery journey with a trusted provider like SBI General.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.