How critical illness insurance can provide financial protection for you and your family

What is critical illness insurance, and how does it help? 

Summary

Critical illness insurance is a type of health coverage. You get compensated when you are diagnosed with a critical illness, and then you are free to use the sum insured in any way you, please.

It is important to protect the health of your loved ones in every possible way. While a regular health insurance plan works very well to offer substantial protection, you must sometimes prepare for more. This is when critical illness plans come in handy. A critical illness is a type of disorder that can potentially be fatal. There are multiple types of critical illnesses, such as cancer and stroke, among others. If you have a critical illness plan, you can get financial aid when a critical illness strikes. This is very beneficial. Read on to know more. 

Understanding a critical illness cover:

The critical illness plans work by paying out financial compensation to the policyholder if a critical illness is diagnosed. Thus, it is a fixed-benefit health insurance plan wherein if you are diagnosed with any of the listed ailments, the plan will pay the entire sum insured to the policyholder and terminate.

As a policyholder, you are free to use that money in any form. You can use it to get treated at the best hospital. You can use it to travel to a foreign destination to find better treatment options, and you can use it to clear your home loan or in any other way you wish.

The only caveat is there is a survival clause of about 30 days in most plans. So, you need to survive for a tenure of 30 days post the initial diagnosis of the ailment in order to file a claim.

To get compensated for the critical illness,  you have to wait for the waiting period of the plan to get over. For example, if you already have lung cancer, when you buy the plan, you won’t be able to get the sum insured.

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A critical illness cover can be bought as a standalone plan or as a rider with most health insurance and life insurance plans in India. Ideally, a critical illness plan needs to be taken along with a comprehensive indemnity health insurance plan wherein the indemnity plan would suffice for all hospitalisation expenses, and the sum insured for the critical illness plan can be utilised for out-of-pocket expenses.

Benefits of a critical illness plan:

A critical illness plan is considered to be one of the best health insurance in India options in because it helps you in several ways. Some of them are:

  • High coverage:
    You can choose the coverage based on your age and premium affordability.

    1. Easy to avail:
      Standalone critical illness plans are plenty in the market and can be easily bought online with a declaration of good health.

  • Coverage against many ailments:
    This plan provides coverage for all the listed ailments. So, if you are diagnosed with any of the listed illnesses, the plan would pay the entire sum insured in a lump sum.

  • Tax benefits:
    The premium you pay for a critical illness plan is tax-free under section 80D upto Rs 1.5 lakhs per annum if you are less than 60 years of age.

As you can see, a critical illness health insurance plan is loaded with features and benefits. If you are looking for interesting health insurance options, consider exploring the critical illness plans, and you may find the ideal coverage.

Who needs critical illness insurance? 

 Critical illness is definitely among the best health insurance in India. You may consider getting critical insurance if you have the following factors:

  • A family history of any critical illness:

If your parents or grandparents had a critical illness like renal failure, cancer or Parkinson’s Disease, you might also be susceptible to it. This is because a number of these diseases are hereditary. The treatment costs are very high, so buying a critical illness in advance helps. You pay a small premium, but if there is a need, you can make a large claim and easily manage the finances while getting treated for the critical illness.

  • If you are over the age of 40:

Your health begins to deteriorate as you grow older. This is why a number of health problems start showing up as you are about to touch 50 years of age. You should therefore be smart and purchase a critical illness plan as soon as you cross the age of 40 to stay prepared for any uncalled-for medical emergency in the near future.

  • If you are the primary earner:

If you are the only breadwinner of your family, you most definitely need a critical illness cover. This is all the more significant if you have a home loan or any other active loan. In the case of a medical emergency, your family will be able to take care of the finances even when the critical illness leaves you too sick to earn a livelihood or, worse, ends your life.

  • If you are under stress and anxiety:

Stress and anxiety are the top reasons why a lot of secondary ailments set in. Sadly, the world today is excessively competitive and complicated, and as a result, you stay stressed all the time. However, if you feel that you can’t cope with the stress and anxiety and it is taking a toll on your health, get a critical illness cover without any further delay.

You have to be very mindful and alert of your health condition and keep it protected beforehand. Investing in a good critical illness health insurance plan helps in this context.

Getting the correct critical illness cover:

If you are planning to get critical illness coverage, here are some tips to help you along the process:

  • Choose the type of cover:

There are different ways to get critical illness coverage. First and foremost, you can get a standalone policy. Every leading health insurance company in India offers a critical illness health plan.

Compare your options and choose to buy the plan from a good and reputed insurance provider. Your other option is to get the critical illness coverage as an add-on coverage either with your health insurance plan or your life insurance plan. You have to pay extra for the rider, but if you think it is a requirement, go for it by all means.

  • Set the sum insured correctly:

You need to decide on the correct sum insured. You can get high coverage amounts with the critical illness cover, but do not choose extra unnecessarily. The more you choose, the more you have to pay, so do your math and arrive at the correct amount you need as your critical illness cover. 

  • Opt for a suitable tenure:

Choose the policy period carefully, at least as long as you have financial dependents on you. Once you know what your exact requirements are, you will be able to make the correct decision.

  • Fill out the form and pay the premium:

And last but not least, read the policy wordings very carefully to understand the scope of coverage. Never be in a hurry when buying insurance, as any incorrect move now will have serious repercussions at the time of a claim. Take your time to understand the clauses. If you feel they are agreeable, fill out the application form, pay the premium online through secure channels, and get coverage instantly.

You can get critical illness coverage instantly, as most insurance providers do not require a pre-policy screening. 

Conclusion 

The health insurance sector in India has developed beautifully, and today we have a diverse variety of insurance products that serve many benefits. As such, there is no winner in the category of best health insurance in India. The best coverage is actually a plan that’s a combination of the various health covers available, including the highly advantageous critical illness cover. Keep all the points mentioned above in mind and choose your health cover carefully. This will help you stay covered against any major medical emergency and keep your family’s finances protected.

Disclaimer: This article is for illustrative purposes only. For further details, please refer to the policy wordings and prospectus before concluding the sales.

 

Originally posted 2023-02-23 20:46:22.

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