My family has a history of intestinal cancer. Should I choose critical-illness cover or an indemnity plan?
– Name withheld on request
Since your family has a history of intestinal cancer, it is crucial to carefully evaluate your health insurance options to ensure comprehensive financial protection. Critical-illness plans and indemnity-based health insurance plans serve different yet essential purposes in managing potential medical expenses.
A critical-illness plan provides a lump sum payout on the diagnosis of a covered illness, including certain types of cancer. This lump sum can be used for various expenses beyond hospitalisation, such as loss of income, alternative treatments, home care, or even travel for advanced medical care. Given that cancer treatment can be prolonged and financially draining, having a critical-illness plan can help you manage additional costs that are not covered by a traditional health insurance policy.
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An indemnity-based health insurance plan covers actual hospitalisation costs, including the doctor’s consultation fees, diagnostic tests, surgeries, chemotherapy, radiation, and post-hospitalisation expenses. Unlike a critical-illness plan, which provides a fixed amount regardless of actual expenses, an indemnity-based plan reimburses or directly settles the medical bills incurred due to hospitalisation or treatment.
If you were to be diagnosed with intestinal cancer, an indemnity plan would ensure that most of your hospital bills are covered, reducing out-of-pocket expenses. Additionally, comprehensive modern policies often include annual health check-ups, which are particularly beneficial for individuals with a family history of critical illnesses.
Therefore, it is highly advisable to choose both. Since each serves a distinct purpose, having both policies can provide well-rounded protection. The indemnity plan will ensure that hospitalisation and treatment expenses are covered, while the critical-illness policy will provide financial security for associated expenses that may not be covered by a regular health insurance policy.
If budget constraints prevent you from buying both, start with an indemnity-based plan with a high sum insured. This way, you can get broader coverage while keeping costs manageable.
Additionally, individuals with a family history of cancer should consider cancer-specific insurance plans, which are designed to provide extended coverage for different stages of cancer, including early-stage diagnosis. Some of these plans also cover regular screenings and preventive check-ups.
It is equally important to disclose your family history when buying a health insurance policy. Failure to do so may cause your claims to be rejected in the future.
Lastly, ensure that your policy has lifetime renewability and no sub-limits on cancer treatment. Considering the rising cost of healthcare, a sum insured of at least ₹15-20 lakh is recommended to adequately cover potential expenses.
Shilpa Arora is co-founder & COO of Insurance Samadhan.
