10 Important Critical Illness Insurance Terms You Should Know
Life is unpredictable, and recent events (e.g. global pandemic) have proved that life can, at any time, force you to run into an expected crisis. It’s no surprise that many of you might have already decided to purchase the best health insurance plan. After all, it is the only way to confront those unfortunate moments effectively whenever a financial emergency strikes.
So, let’s know about some terms that will be beneficial for your knowledge.
The policyholder is a person who purchases a policy. Even if the person has purchased a family health insurance plan, the owner of that policy is known as the policyholder. And this person will be asked monthly/yearly to pay the premium.
2.Sum Assured (Coverage)
Sum assured or coverage is used as a term defining cover to the policyholder. To simply put, the sum assured is the amount that the policyholder may receive at the time of claim settlement.
3.Waiting Period Clause
The waiting period clause is the time granted to a policyholder, stating that one can't ask for a claim before the waiting period clause. Usually, the waiting period in critical illness insurance plans lasts for 90 days. If the person is already suffering from a serious disease, the waiting period may extend up to 48 months.
These are additional facilities provided to the policyholder apart from his/her basic claim settlement. For example- this may include travel expenses, hospital room expenses, etc.
Exclusion is a term defining which disease/disorder/health condition isn’t included in the critical insurance plan. If the policyholder disease exits in the exclusions list, they may not get any assistance from the insurance company.
Inclusions are the opposite of Exclusion. The term defines which disease/disorder/health condition is included in the critical insurance plan. The insurance company will have to pay the insurance amount if a person seeks financial support for their medical treatment.
7.CI Plan (Sub-Limit)
The term specifies how much expense the insurance company will bear in the critical illness plan. For instance, the company may pose a sub-limit on the expenses for treating a certain disease or a sub-limit on the accommodation and travel.
Premium is the amount being payable by the policyholder. The amount for premium is decided on numerous factors; predominantly, the age of the policyholder is first considered.
9. Premium mode/term/frequency
While selecting the policy, a person can select the premium mode/term/frequency. For instance- it is also up to the policyholder. That is, it's his/her choice if he/she wants to pay the premium in a lump-sum amount or through EMIs.
10. Claim process
The claim process term defines how the insurance company will pay the insurance amount to the policyholder. Meanwhile, you may get to see additional notable points, like deductible and copay is the amount the policyholder has to pay from his/her own end before the sum-insured amount kicks in.
These are some of the fundamental terms of a critical illness insurance plan that you may even get to see in other health insurance plans.