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Get10 Factors Affecting the Premium of Critical Illness Insurance
May 7, 2025
Critical health insurance plans that act as your security shield at the time of a medical crisis are no longer a mere need; it is a necessity. As the hazard and recurrence of critical illnesses are on the rise, a critical illness cover is a great investment in guaranteeing quality healthcare and peace of mind. An individual’s physical, mental, and monetary health can be antagonistically affected if analysed with a critical illness like cancer. That’s why a critical illness insurance policy pays a part of the sum to offer assistance to the policyholder, guaranteeing the individual has access to adequate reserves to fight the sickness and recuperate quicker with the assistance of high-quality treatment. Before purchasing the policy, you ought to know the benefits of having a basic health insurance policy and how the premium is decided. Let’s learn more about it.
Understanding Critical Illness Insurance
Critical illness insurance is a sort of health insurance plan that covers basic or life-threatening maladies like stroke, cancer, kidney failure, loss of motion, multiple sclerosis, heart attack, etc. You can file a claim if you are diagnosed with any of the covered basic illnesses mentioned on your critical illness medical insurance. The health insurance providers will pay a premium to reimburse up to the full safety net provider, no matter what the treatment costs are.
For instance, you have opted for basic health insurance plans with a whole safety net provider of INR 15 lakhs, and your treatment costs sum to INR 11 lakhs. Protections will pay you the whole sum and will not inquire for any bills or reports; the as it were report required is verification of the diagnosis.
However, you can profit off the stipend as it were if you survive a certain period after the date of conclusion. This period is called the survival period and can extend between 14 and 30 days based on the arrangement and guarantors.
Is there a Waiting Period for Critical Illness Insurance?
Like standard health insurance plans, critical illness insurance also has a waiting period, but it's much lower. The waiting period is generally 90 days from the date of policy purchase.
Related Blog: What is 'Waiting Period' in Health Insurance?
Factors Affecting the Premium of a Critical Illness Insurance Plan
A few components influence the premium of critical health insurance policies, such as -
1. Age
A person’s age is a critical calculation influencing the premium of basic health insurance policies. If you purchase this approach at a youthful age, the premium will be lower since the chance of catching a critical illness is less. As you age, the hazard increases, and so does the premium.
2. Family History
If you have a family history of illnesses like heart disease or cancer, you are at an increased risk of catching such illnesses. It may be troublesome for you to get a basic health insurance plan, and if any safety net providers offer coverage, the premiums charged will be high.
3. Pre-existing Conditions
Individuals with pre-existing conditions will have to pay a higher premium than those who don’t have any medical health issues.
4. Sum Insured
The higher the comprehensive health insurance, the higher the premium.
Related Blog: What Is Sum Insured in Health Insurance?
5. Body Mass Index (BMI)
A person with a higher BMI is more vulnerable to afflictions, including the heart and muscles. This implies customary medical considerations, such as specialist visits and medicines, and the likelihood of recording claims is high. So, considering all the health dangers, the health insurance premium will be high for an individual with a high BMI.
6. Lifestyle
Destitute way of life propensities, such as eating less, missing fundamental supplements, needing to work out, smoking, and utilising liquor, increase the chance of health issues; thus, the premium charged for a basic health insurance policy will be high. Moreover, if you are an adventure enthusiast and routinely lock in activities like bungee jumping, skiing, scuba diving, etc., the premium will be higher.
7. Work Environment
The working environment influences the premium of a basic health insurance policy. If you work in a high-risk, unpleasant, or perilous environment, the premium even of a basic health insurance policy will be higher.
8. Number of Illnesses Covered
Health insurance policies which cover more basic or life-threatening ailments have higher premiums.
9. Riders
Selecting riders or add-on covers will increase the premium. So, you must select only those add-ons which are highly necessary.
10. Medical Inflation
When inflation leads to a rise in healthcare costs, insurance providers will increase the premiums too.
Tips to Select the Premium of a Critical Illness Insurance Policy
If you are looking for reasonable premiums while getting a critical illness insurance policy, here are a few tips to offer assistance to you:–
1. Choose an Adequate Sum Insured
Select a satisfactory whole safety net provider that can cover your restorative and non-medical costs. A higher entirety guarantor will lead to higher premiums, so you must select a sum that offers adequate coverage and is affordable.
2. Assess the Risk Factors
Evaluate the chance variables of creating basic sicknesses and see for suitable coverage.
3. Opt for a Critical Illness Insurance Rider
Selecting a critical illness insurance rider will be less costly compared to a standalone approach. If you don’t have a family history of such sicknesses but need to amplify the scope of your standard healthcare arrangement, an add-on cover may give satisfactory coverage.
4. Broad or Basic Policy Covering
A health insurance plan covering a wide range of basic illnesses will be costly. You must choose whether to select for broader scope or an essential one.
5. Check for Discounts
Check for rebates by keeping up a sound way of life, using the no-claim reward, or bundling with other insurance products.
6. Comparing Quotes Offered by Different Insurers
Comparing quotations advertised by distinctive insurance providers will offer assistance to you in discovering the best health insurance policy that meets your requirements.
Conclusion
Critical illness insurance offers essential financial support during severe health crises, enabling individuals to access quality healthcare without overwhelming financial strain. This policy provides peace of mind, knowing that one is covered against life-threatening illnesses, allowing for quicker recovery and a focus on health rather than monetary worries.
This blog is intended solely for educational and informational purposes. The content may include outdated information regarding the topic discussed. Readers are encouraged to confirm the accuracy and relevance of the data before making any significant decisions. SBI General Insurance disclaims responsibility for any errors or consequences arising from the use of outdated information provided herein.
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