What Are The Factors Affecting The Premium Of Critical Illness Insurance?

There is no certainty in life. One day, you feel great, and the next day, you might get into a medical emergency. And, this can literally happen with anyone.

In such situations, having a health insurance policy can come in handy. So, most people get one right away. But what about critical illnesses?

As you know, most health insurance does not cover critical illnesses within its policy. So, you need to get them separately.

That is why purchasing critical illness insurance is necessary without hesitation.

With the help of this insurance policy, you get the right financial support to cover your critical illness treatments. Helping you to completely focus on your recovery.

But guess what? Not all policies offer the same benefits and financial support. So, you need to choose the right one for your needs.

Therefore, before you go ahead and purchase any critical illness insurance premium policy, you need to understand the amount you may have to pay and the factors that influence this cost.

In this article, I have delved deep into the factors that affect the policy coverage and how you can choose the right one. So, keep reading to know more!

Is There A Waiting Period In Critical Illness Insurance?

Yes, just like any standard health coverage, critical illness insurance also has a waiting period.

Unlike most of the health insurance policies, the waiting period in critical illness insurance is comparatively shorter. It ranges from 30 days to 90 days at most.

What Factors Affect The Critical Illness Insurance Premium?

Just like most health insurance, the coverage and benefits under the critical illness insurance depend on certain factors. Some of these factors include:

1. Age

It is not a new thing; we all know that age is one of the primary factors that affect the insurance coverage and the premium amount.

So, if you are young, you will have to pay a lower premium rate, and if you are above 40-50 years, you might have to pay more.

That’s because a young person has fewer chances of having a critical illness compared to an older person. So, it is better to buy the insurance policy while you are still young.

2. Pre-Existing Illness

Another crucial factor that impacts your critical illness insurance premium is having any pre-existing illness.

Suppose you already have some kind of illness, then your premium rate will increase as you are now more prone to getting a critical illness.

Whereas, if you don’t have any serious illness, you can get a policy at a much lower rate.

3. Family Health History

Family health history plays a crucial role in your critical illness insurance. You might wonder, how? 

Well, if you have a history of any hereditary illness, you have a higher chance of suffering a critical illness.

So, naturally, your premium rate will be higher than those who have no such history.

4. Lifestyle

Surprisingly, how you live your life also affects your insurance premium. For instance, if your daily life activities include being around something that is a health hazard, then your rate will be higher.

But, on the contrary, if you live a healthy lifestyle, then you will be offered a much lower premium amount. So, you need to check your lifestyle to get a better policy rate.

5. Body Mass Index (BMI)

The body mass index of a person also determines their health coverage premium. People with higher BMIs are more susceptible to heart and muscle-related issues. 

This means they would need frequent medical checkups, resulting in more medical claims. Thus, their insurance premiums are higher.  

6. Work Environment

Your work environment also affects your premium amount. 

If you regularly work in hazardous environments that affect your health in the long term, potentially leading to critical illnesses, you become a high-risk case. 

In such a case, the insurer will finalize your premium amount on the higher side. 

7. Sum Insured

The sum insured is the coverage amount up to which the insurance company will pay your medical expenses. 

If you choose a higher sum insured, you will have to pay a higher premium and vice versa. 

8. Number Of Illnesses Covered

Another factor that affects your critical illness insurance premium is the number of critical illnesses covered under the plan. 

If your chosen insurer provides coverage against an extensive list of critical illnesses, it may request a higher premium. 

However, if you are getting comprehensive coverage by paying a slightly higher premium, then it is worth your money. 

9. Add-on Covers

Including add-on covers in your health coverage policy also changes its premium. The more add-ons you include, the higher your premium will be. 

Thus, it is advisable to choose only those add-ons that are highly required. 

How To Choose The Right Illness Insurance?

Choosing the right critical illness insurance premium can save you from extra expenses. However, with countless insurance policies in the market, it might be confusing.

So, to help you choose the best one for you, I have listed the simple steps you need to follow. This way, you will get the right insurance easily.

1. Select The Right Sum Insured

Always choose an adequate sum insured for your medical expenses. Choosing a higher sum insured will only increase your premium if it remains unutilized. 

Therefore, assess your medical needs and then select the sum insured that adequately covers them. 

2. Assess Risk Factors

Before choosing any critical illness insurance, assess your risk factors for developing a critical illness, taking into consideration your lifestyle and family history. 

If you are a low-risk individual, you can opt for a lower premium and basic coverage plan as well. 

3. Check For Discount Rates

Several health coverage providers offer insurance discounts periodically; you can buy a policy during one of these times.

4. Compare Multiple Quotes Before Finalizing

Ensure you compare premium quotes from multiple health insurance providers to determine which one offers the most comprehensive coverage benefits at an affordable premium, aligning with your budget. 

Health Protection With TATA AIG

Critical illness insurance provides great financial support during a health crisis. 

With its coverage, you can be assured of receiving the best possible treatment in the event of a serious disease. 

To obtain your coverage, you can choose a reliable insurer like TATA AIG, whose Criti MediCare policy is specifically designed to provide coverage for critical illnesses. 

These plan benefits include a lump-sum payment for critical illness treatment, a preventive health checkup, coverage of second medical opinions, and smart cancer care coverage.

Read More:

• Trusting What We Can’t Understand
• Physical Health Maintenance: What You Need to Know
• The Role Of Health And Safety Courses In Risk Management