Choosing the best critical illness cover in the UAE

Life insurance is the answer to the one of scariest question - 'What if I die tomorrow?' If your life is covered, you do not have to worry about any mis-happening (financially, of course!)

However, have you ever wondered what will happen if you don't die!

Let us rephrase - what will happen to you and your family if you are alive but not able to make any living due to some illness. On top of that, you have to bear heavy medical expenses on treatments.

Here comes the critical illness solutions.

Critical illness cover, also referred to as critical illness insurance, is an insurance policy where you'll get a 'lump sum' - a one-off payment - if you're diagnosed with one of the serious illnesses covered by your insurance policy. It's designed to pay off your mortgage, debts, or pay for alterations to your home such as wheelchair access, should you need it.

You critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed on the policy.  The policy will also specify how serious the condition must be.

Most policies will also pay out, if you are permanently disabled because of injury or illness. It only pays out once and then the policy ends.

Points to consider before buying critical illness cover

• List of all critical illness insurance overages included in your policy: Different companies offer risk coverage towards different critical illnesses.
• Understand the procedure of filing claim: A claim process is important for any insurance policy. So is the case with critical illness insurance policy. Thus, do learn well in advance about the formalities and documents you would require to file a claim.
• Benefits you would get at the time of renewal: Before buying any particular critical illness insurance, make it a point to find out about the renewal benefits you would get from your insurer for the year you haven't filed any claim.
• Some other factors that one should look for before buying critical illness insurance is claim settlement history

How to choose sum assured?

Before deciding on sum assured, keep in mind factors like monthly expenditure,treatments costs and future financial liabilities in case of income loss.

Also, take into account existing covers such as Mediclaim or personal accident and disability insurance policy.

Stand-alone policy or rider?

You either can buy a critical illness plan as a standalone policy, or you can combine critical illness riders with your life insurance plans. The policy terms and conditions under both the options are more or less the same. The choice between a standalone policy and a rider depends on your requirement.

The decision to buy critical illness coverage also depends on individual risk tolerance, advisers say. Mitch Reiner, an investment adviser in Atlanta, said most people are probably best off self-insuring against critical illnesses. However, he wouldn't try to dissuade a client who would truly sleep better at night with that additional coverage.