Is Buying Critical Illness Cover Worth It?

Is Buying Critical Illness Cover Worth It

Severe illnesses or conditions can harm your health – leaving you and your family to deal with substantial medical bills and financial instability.In such situations, critical illness insurance acts as lifesaver-guaranteeing financial coverage anytime funds are needed for medical care and family support.Critical illness insurance provides comprehensive financial assistance in the event an individual is diagnosed with a severe ailment or disorder.

You can opt for a critical illness benefit coverage along with a health insurance policy for more robust protection against a wide variety of health issues. Critical illness insurance can either be taken as a stand-alone insurance policy or as an add-on to a health insurance plan or a term plan policy.

What Is A Critical Illness Insurance Cover?

Unlike a regular individual health insurance plan covering healthcare expenses such as hospitalization, a critical illness insurance plan or an add-on pays an extra amount to the insured if diagnosed with any of the listed critical illnesses mentioned in the insurance terms.

Under critical illness insurance, starting shortly after the diagnosis of the condition, a lump sum is paid to the insured to cover for associated medical tests, healthcare expenditures and other expenses. The lump-sum received could also be used for personal expenses such as household expenses or paying off debt, all the while ensuring you get quality healthcare and increasing the chances of survival.

Why Buy A Critical Illness Insurance Plan?

A critical illness insurance coverage can be bought either as a stand-alone policy or as a critical illness add-on rider with a health or term plan policy. It offers coverage for nearly 30-40 severe illnesses and conditions including paralysis, heart attack, cancer, stroke, kidney failure, and benign tumor. Here is why buying critical illness insurance is worth it:

  1. The Increasing Impact of Critical Illness in Life

When a person is diagnosed with a critical illness, cash outflows are not limited to hospitalization costs and lead to massive drainage of money. It also entails consequences such as failure to continue to work or employment, which can affect the standard of living. Predominantly, the involved cost of treatment for critical illnesses is relatively higher than other conditions.It can be burdening to handle finances and manage the household while suffering from a severe disease. With critical illness insurance, such impacts can be treated effectively.

  1. Cost of Healthcare

If your health insurance coverage is not sufficient to cover the treatment expenses of a serious condition, it can be a concerning matter. Most families don’t have enough funds at hand, which can lead to active liquidation of current savings and other investments to meet the medical costs that would impede the long-term financial goals. With critical illness insurance, the lump sum paid as the cover can help provide for treatment-related expenses and care, without worrying or putting the family members in an unmanageable situation.

  1. Significant Tax Benefits

The premium paid against the critical illness insurance policy is eligible for tax deductions under Section 80D of the Income Tax Act. So, adding a critical illness benefit as a whole policy or with a term plan policy does more than protect in case of medical emergencies by offering substantial savings on tax.

  1. No Financial Burden

Compared to a health insurance policy, critical illness insurance offers a lump sum compensation that provides greater flexibility to use the money. It does not have any restrictions on the use of the funds received from the policy. It can be used to not only get the best in class treatment but also ensure no financial constraints or burden on family members.

  1. Peace of Mind for Family

Dealing with a severe illness or condition is financially draining, as it is. To top it off, the impact it has on a family, psychologically and emotionally can be highly stressful. With the compensation that critical illness insurance offers to make worries about arranging funds or managing household expenses or other liabilities a lot more manageable. It provides peace of mind by enabling financial freedom to the insured and their family.

How Critical Illness Insurance Increases Chances of Survival?

Buying a critical illness insurance cover substantially increases the chances of survival against a severe illness or condition.  It enables one to focus more on their medical care rather than scurrying around to manage the cost of treatments and personal expenses.

In the case of a critical illness insurance policy, or as a critical illness rider with a term plan policy – a fixed amount is paid as compensation if diagnosed with a critical illness such as cancer, or kidney failure. The lump-sum is paid irrespective of whether you choose to get treatment in India or overseas. This way, your chance of survival multiplies as you get a hold of the best available care.

Secure Yourself with A Critical Illness Insurance Today

Critical illness insurance has become essential to fight against life-threatening conditions. It offers not only with financial assistance but also supports the needs of the dependents in times of vulnerability.

For the same, it is recommended that you either buy stand-alone critical illness insurance or select a critical illness rider for your existing term plan policy to ensure comprehensive financial security.With a multitude of critical illness insurance policies and health insurance tips available online, make sure to do your research before buying an insurance policy.

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