Limitations of a Critical Illness cover
A popular insurance plan is the Critical Illness cover which insures you against grave ailments like Cancer, Heart Disease etc. Many times, people are so scared of contracting these conditions that they land up buying such policies in a hurry, without fully understanding their scope and limitations. Let's see what exactly a Critical Illness (CI) cover is - a CI policy gives the insurer a tax-free lump sum amount which can be helpful in a time of of extreme crisis.
It has unique advantages - immediate financial relief when you are facing a serious illness, coverage of major terminal illnesses, monetary boost for those who are dependent, etc. However, just like other insurance policies, a CI cover also comes with its own share of limitations and we ought to be aware before we make a purchasing decision.
The medicinal and technological advancements have changed the definition of a 'critical' or a 'terminal' disease significantly. Many of the diseases that were thought to be terminal back in the day are not even considered very dangerous now.
Also, in the case of illnesses like heart attack and cancer, they need to reach a certain level of severity to fall under the ambit of a Critical Illness cover. . For example, most plans cover heart attacks, CABG and Aorta Surgery but not problems like Coronary Angioplasty or Insertion of Pace Makers etc.