A Comprehensive Guide on Critical Illness Insurance

People today have cultivated bad everyday habits that prove to be unhealthy for their wellbeing. Along with that, the unhealthy lifestyle people are leading, the stress they take at the workplace, etc. lead to lifestyle diseases. Not just old people, but also youngsters are suffering from life-threatening critical ailments. The chances of heart attack among young people have also risen, which is reason enough to take extra care of your health. Have you ever thought of how much all the treatments or surgeries can cost you? It can surely eat up your savings, and you’d be left with no financial backup. In cases like these, health insurance is exactly what you need.

However, if you purchase the basic individual health insurance plan, your hospitalization can be covered, but what if you suffer from some critical illness. Your health insurance plan sure won’t cover that. Therefore, you will require critical illness insurance.

About Critical Illness Insurance

If you purchase this policy, you receive a fixed amount from your insurance provider, in case you’re diagnosed with any critical ailments as mentioned in your policy document. Once the disease is diagnosed, you receive a lump-sum amount, which can be used for your household expenses or any other expenditure such as diagnostic tests and treatment. Remember that your policy will lapse right after you’ve made the payment.

Let us clear the difference between Regular Individual Health Insurance Policy and Critical Illness:

Individual Health Insurance Policy

This plan is the basic and most common one. People usually prefer buying an individual plan as it provides you with coverage for diseases as well as injuries if mentioned in the policy. Payout will be made based on the incurred medical expenses. However, you will receive the coverage by your policy even after you’ve received your claim amount, till the renewal date.

Critical Illness Policy

On the purchase of a critical illness insurance plan, when a major health condition is diagnosed, you receive a specific lump-sum amount from your insurer. But, unlike the individual health plan, your policy will cease to exist once you receive the claim amount.

Here are a few benefits of having critical illness policy

  • A specific amount is paid if you’ve been diagnosed with a critical ailment. This is even if you are not in India for the time being. If the treatment takes place in a foreign country, you will still receive the payment.
  • The payout for Critical Illness is tax-free under Section 80D of the Income Tax Act.
  • Critical Illness affects the person physically, but it also can drain your savings. Critical ailments insurance policy will pay a certain amount that you can use to cover all the medical or household expenses.
  • Purchasing this policy will assure you peace of mind and allow you to focus on medical treatment. You need not run gathering money for the expenses.
  • You can avail cashless health insurance if treated in one of your insurer’s network hospitals.

Blame it on your lifestyle, but you cannot predict anything now. Therefore, always stay prepared and purchase a critical illness insurance policy to protect yourself from life-threatening diseases. Now you know the advantages, go ahead and buy now!