In my family one of my aunts was diagnosed with a brain tumour, both of them were completely shattered. Adding to the agony, the only hope for them is the medical insurance policy that covered the hospitalization expenses except for critical illnesses. Due to the severity of his sickness, he was unable to go to work as well. There are many people like my aunt and uncle who don’t know the benefits of a critical illness insurance policy. And even they are aware, they cannot decide whether they should buy one or not.
Read on to know more about a critical illness insurance plan and its significance in the present life.
What is Critical Illness Insurance?
A critical illness insurance policy offers against life-threatening diseases such as renal failure, cancer, liver transplant, etc. The compensation is provided in a lump sum upon diagnosis of a critical illness that is covered under this critical insurance policy. This amount can be utilized to pay for expenses incurred on medical treatment. As a rule, there is a survival period of 30 days and the claim is settled on completion of the survival period.
Benefits of Critical Illness Insurance
Let’s have a look at the benefits of critical illness insurance it will help you understand better :
- Payment in a Lump sum– The insurer pays the full sum insured in a singular amount paying regardless of your hospitalization cost. You can utilize this to pay off the cost treatment cost, pay off any obligation and recovery costs
- Easy Claim Process– Hospitalization is not essential and the claim can be processed based on the insurer diagnosis reports.
- Lesser Waiting Period– The waiting period is normally up to 3 months ( in most cases)
- Avail Tax Benefits– Along with medical insurance this plan also offers tax benefits under Section 80D
The Necessary for Critical Illness Insurance
With medical inflation and the rising incidences of basic critical illness, it is very important to buy a critical illness plan. Today a breast cancer surgery can range anywhere/anyplace between Rs. 14 and 16 lakhs. And a liver transplant can cost easily from Rs. 25 to 36 lakhs. Looking at these figures; a critical illness cover becomes almost unavoidable.
Should I Buy a Critical Illness Policy?
There is a steady rise in the number of individuals getting diagnosed with life-threatening health conditions. While the possibility of individuals developing critical illness is increasing, the age at which individuals creating it is constantly diminishing. A study tells even people at the age of 20s and 30s are getting diagnosed with such dreadful diseases. Therefore, there is no set criterion to buy a policy. However, a certain situation makes it essential for you to think about buying a critical illness policy:
- If You Have a Family History of Critical Illnesses: Mostly, the reason behind for critical illnesses is genetic/ hereditary. For example, the risk of cancer is higher, if you have a family ancestry of the disease. As a proactive measure, you should get a critical illness insurance policy to enjoy a secured future and benefit the most ideal treatment. If you already have knowledge about your family’s medical history then, you should definitely consider buying a critical illness plan.
- If You Are the Sole Breadwinner of your Family: If you are the only earning member in your family, it is important to secure the entire family with a critical illness insurance policy. It is required if you do not want your friends and family to go through emotional turmoil or financial distress post-diagnosis of a critical illness. Moreover, a critical illness insurance policy also recompenses for loss in income along with the treatment cost. Coverage amounts of critical illness plan can be chosen as per your personal and financial needs.