Reasons for Disease-specific health insurance plans to gain traction?

Every now and then, we see the health insurance sector evolving. New products are launched and existing products are modified. These changes prove to be good for the policyholders in the long run, simply because they make insurance more need-specific and therefore more attractive to the proposers. The disease-specific health insurance plans are an example of this. These plans cover specific illnesses and help the policyholder meet the expenses needed to seek the best possible treatment. Take a look at this article to know more about these plans.

What is a disease specific health insurance plan?

Let us first understand what a disease-specific health plan is. A disease-specific plan offers compensation if you are diagnosed with one particular ailment. The Cancer Care plan from HDFC Life Insurance is such a plan. So if you have been diagnosed with cancer, at any stage, you will get compensation. You can then use the money in a manner that suits you to get the best possible treatment.

What are the advantages of the disease-specific plans?

There are some very useful advantages of the disease-specific health insurance plans. They are:

• Cover at all stages: You get complete protection against the specific disease. So irrespective of the stage at which you are diagnosed, the insurance provider pays out the sum assured. This helps you deal with the medical expenses and at times also helps by compensating the loss of income.
• Inexpensive: One of the biggest advantages of the disease-specific plans is that they are inexpensive. A critical illness plan that offers protection against almost 20 illnesses is priced at Rs 5,000. A corresponding disease-specific plan with a similar cover can be found for as low as Rs 3,000. This makes the plans affordable for a large number of people.
• Target oriented: As the name suggests, the disease-specific policies are more target oriented. So if you have a cancer or diabetes history in your family and are apprehensive about getting the disease too, a disease-specific plan can prove to be helpful for you. You don't have to unnecessarily take cover for additional illnesses and can deal with that one particular ailment.
• No waiting period: Most of the comprehensive health insurance plans or the critical illnesses plan offer protection against the life-threatening illnesses or pre-existing conditions after a waiting period. However, most of the disease-specific plans have a lower waiting period say 180 days, making the plan very well suited for the needs of the policyholder.
• Makes insurance more sensible: A huge positive of the disease-specific health insurance plans is that these plans make insurance seen more logical to the average man. Since these plans offer protection against more viable health threats, people don't mind paying the premium and staying protected.

What are the best disease-specific health insurance plans?

There are some very good disease-specific health insurance plans currently available in India. Some of them are:

1. Cancer Care from HDFC Life
2. iCancer from Aegon Religare Life Insurance
3. Apollo Munich Dengue Care
4. Apollo Munich Energy Health Insurance Plan
5. Diabetes Safe Insurance Policy from Star Health Insurance
6. Aditya Birla Sun Life Insurance Cancer Shield Plan
7. ICICI Pru Heart/Cancer Protect

All these plans, as their names suggest, cater to specific illnesses and help you deal with them financially when there is a diagnosis.

Drawbacks of the disease-specific health insurance plans

Unfortunately, there are some disadvantages associated with these plans as well. First and foremost, the coverage is limited. Unlike a critical illness plan where about 20 illnesses are covered, here only one is covered. So if you are diagnosed with any other type of critical illness, you won't get compensation.

The chances of incorrect selling and purchasing of these plans are also high. You have to be very alert, understand the plan and then buy it. A disease-specific health insurance plan is bought for a specific health risk you may feel you are exposed to. So assess the situation, the plan and your requirements first. Many people make the mistake of buying such a plan without correct assessment. This is a big drawback.

In a nutshell

To put it in a nutshell, the disease-specific health insurance plans are highly beneficial. And since they are so affordable, you can easily buy them. You can buy the plans as standalone policies or you can buy them in conjunction with a comprehensive health insurance plan. As you saw from the points mentioned above, there are many advantages of buying such a health plan. There are some points to consider as well. So go through the plans, understand their features and see if they suit your requirements properly or not. If you are satisfied with what the plans offer and you feel you can benefit from them, go right ahead and make a purchase. You will find a good cover at a good rate and can address your health insurance needs more accurately.

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