If you’re lucky, you’ve probably never had to use critical illness insurance. Perhaps you’ve never ever heard of it. Individuals in their early 30s or late 20s might think that they have sufficient time before they need to start worrying about their health. But that may not be the reality. A medical emergency can arise at the most unexpected of times, and at these times, not having adequate protection can be detrimental. In the event of a big health emergency, such as cancer, a heart attack, or a stroke, critical illness insurance could be the only thing standing between you and your financial ruin. Critical illness coverage could come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
What is critical illness insurance?
- Critical illness insurance is a medical cover that provides financial assistance to insured members in case of hospitalisation due to critical illness.
- Critical illness insurance provides additional coverage for medical emergencies like cancer, heart attacks or strokes.
- Because emergencies or illnesses often incur a greater-than-average medical cost, these policies pay out cash to help cover those overruns when the traditional way may fall short.
- This policy comes at a relatively low cost.
- In cases where an earning member of the family is diagnosed with severe disease, it can be a valuable source of financial support since the primary income source may be compromised.
Critical illness insurance highlights:
- Covers 32 critical diseases
- Pre hospitalisation and post hospitalisation
- Organ donor cover
- Dialysis cover
- Psychiatric counselling
Advantages of critical illness insurance policy:
1. Lump sum cover
Provides lump sum amount on the first diagnosis of the covered major illness after 90 days of policy commencement.
2. Coverage against life-threatening diseases
Many individuals in India suffer from heart disease and diabetes, so it’s better to have an insurance plan that covers you against it. A critical insurance policy protects you against extensive critical health conditions that you may/may not suffer in the future.
3. Tax benefits
The term insurance with critical illness policy covers the premium paid and can be claimed for tax deduction under sections 80C and 80D of the income tax act, 1961. The overall amount can be claimed for a tax deduction for each section.
4. Coverage for nominal price
One of the main benefits of term insurance is the most affordable life insurance available in the market. You can buy extensive coverage at an affordable price. You can calculate the determined amount based on your sum assured and add-on benefits.
Why is critical illness insurance important?
Buying critical illness insurance safeguards you against critical situations. While you’re already going through a lot of stress, this insurance will help you financially during your hard times. Here are a few reasons why it is important to buy critical illness insurance.
1. Financial covers:
If you get diagnosed with a policy-covered illness, your insurer will pay you a pre-fixed amount. You can use that amount to manage medical and other expenses while recovering from the illness.
2. Complements your health insurance
Having health insurance is the most recommended financial protection against high medical expenses. Having a Critical Illness plan on top of your regular health insurance will give you extensive coverage. It will also help you manage your non-medical expenses more effectively.
3. Backup for payments:
While suffering from critical illness, you may not be able to work. This could affect your ability to provide for yourself and your dependents. Receiving the amount from your insurer may help you cope with your expenses.
4. Several insurances covered:
All the common critical illnesses are covered in a critical illness policy. So, you don’t need to panic if you, unfortunately, get diagnosed with any of those. Every medical condition can be found in the policy.
5. Afford quality healthcare:
Treatments for critical illness are usually expensive. This kind of cover will offer you the best treatment for the illness that you suffer from.
6. Tax benefits:
Money spent on buying a critical illness cover is eligible for tax benefits as per tax regulations.
Who should buy critical illness coverage?
Individuals seeking protection against possible health emergencies can find a comprehensive shield with critical illness insurance, especially with a medical history or pre-existing diseases. This policy can provide financial security when the individual is in need of cash to treat the disease while still supporting the family.
1. Individual with a family history of illness: if a critical condition runs in the family, it just increases the risk of other family members. Thus, it becomes essential for you to have adequate coverage with the policy.
2. Breadwinning family members: a family’s breadwinner must think of the family’s financial security and get a critical illness policy as early as possible.
3. Individuals with high-risk occupations: those who work in high present works environments are more likely to suffer server diseases
4. Women: the increasing cases of cancer in women are alarming. Thus, investing in this policy is the best if you are prone to such risks.
List of diseases covered under critical illness policy:
- Paralysis
- Cancer
- Stroke
- Kidney failure
- Deafness
- Multiple sclerosis
- Heart attack
- Major burn
In conclusion
For those who are looking for financial benefits, in addition to a health insurance plan, to take care of medical expenses incurred in treating critical health conditions, critical illness benefits can be a good security to have. Critical illnesses come with no warning, and having adequate protection can give you the financial confidence to pursue the best possible medical treatments without worrying about the financial burden. It can protect your savings from being eaten up for critical health treatments.
Think through the benefits and make a wise choice on whether this cover is important and relevant for your life stage and financial planning needs.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.