Buddy Finansialku confused about choosing a critical illness insurance product? Or already have but still don’t understand how to use it? Come on, pay attention to the following!
- Critical illness protection is obtained when the insured is diagnosed as critically ill by a doctor.
- Critical illness insurance is different from health insurance.
- Insurance is a long-term commitment, so it must be studied well so that disappointment does not occur.
Critical Illness Insurance and What It Covers
Critical illness insurance is insurance protection for the insured when experiencing a critical illness risk. Critical illness insurance protection can only be obtained when the insured has been diagnosed with a critical illness by a doctor.
Critical illness is a disease that is very dangerous and threatens a person’s life. Based on data from Research and Basic Health (Riskesdas 2018), there are many kinds of critical illnesses.
And insurance companies usually cover about 50 to 150 types of critical illness.
The most common critical illnesses covered by insurance companies are:
To find out more fully what types of critical illnesses will be covered, you can ask for a list from the insurance company for the product you are going to buy.
If you already have the product, you can see the list of critical illnesses in the policy book.
Things to Pay Attention to in Critical Illness Insurance
So that you don’t make the wrong choice, you need to know that there are two types of critical illness insurance, namely:
- Traditional Critical Illness Insurance
The traditional type of critical illness insurance or stand-alone is a type of insurance that only provides one benefit, namely protection against critical illness. This insurance is not tied to other insurance policies.
If you want health or mental benefits, then you have to buy a different policy.
- Additional Critical Illness Insurance
An additional type of insurance or rider is an additional facility that follows life insurance as the main facility. You only need one policy with several benefits, one of which is critical illness protection.
This type of additional benefit is usually available in unit link insurance.
In addition to the two types of critical illness insurance above, there are several important things that you need to pay attention to so that there is no misunderstanding when submitting a claim. Here are some of those things:
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#1 No Hospital Fee Reimbursement
Critical illness insurance does not provide benefits for reimbursement of hospitalization costs like health insurance.
This type of insurance only provides compensation equal to the sum insured when the insured has been diagnosed with a critical illness by a doctor and meets the requirements of the insurance company.
So, this sum assured can be used as treatment costs after diagnosis or as a substitute for income because usually when critically ill, they have difficulty working or lose their job.
#2 Honestly Answering Questions About Disease
If you have experienced or been diagnosed with a critical illness before purchasing this insurance product, it is likely that your application will be rejected.
If you provide false information that you have never suffered from a critical illness at the beginning of purchasing insurance, the insurance company will still know it from your track record in the hospital.
#3 Pay attention to the Claim Terms
Each insurance company will have different terms and ways of claiming. But usually, the required documents are almost the same, such as:
- copy of the insured’s identity card
- doctor’s certificate
- examination result letter
- police number
- claim submission form
- medical records
The faster the documents are collected in full, the faster the claim disbursement process will be.
#4 Claimable Amount
The terms and conditions of the nominal compensation that can be received will also be different in each insurance company. It can depend on the level of the critical condition experienced by the insured. For that, pay attention to the terms and conditions of exclusion of these products.
You can watch the following video to get other important information about critical illness insurance.
Tips for Choosing Critical Illness Insurance
Does everyone need to buy critical illness insurance products? Of course, it depends on the needs and finances of my Finansialku Buddy. In order not to be wrong in determining the purchase of critical illness insurance, here are the tips:
#1 Lifestyle and Inherited Diseases
Critical illness can be caused by your lifestyle or it can be inherited from your parents. You must recognize yourself from the lifestyle you have lived so far.
Critical illness can arise from your own bad habits. But if there is a hereditary disease, you should indeed have critical illness insurance.
#2 Adjust the Budget
The greater the value of compensation and the number of critical illnesses covered, the greater the premium you have to pay. Keep in mind that insurance payments are routine and if possible as long as you live.
Therefore, calculate it well so as not to burden your finances.
#3 Choose the Right Product
If you already have life insurance before, you can choose traditional critical illness insurance. This is done so that the products you have can provide maximum benefits.
Critical illness insurance is different from health insurance. Review the terms and conditions of the insurance product. Also, pay attention to the type before you choose it.
Insurance is a long-term commitment, so it would be a shame if there were disappointments in the future because we didn’t study well.
If you need help choosing a critical illness insurance product or want to review a product you already have, you can contact me or another Financial Planner.