The medical costs in India are at an all-time high. To be diagnosed with diseases at this time will not only cause emotional stress but also a financial one. Serious illnesses can attract high treatment costs, the money that you may have saved for other essential goals, such as education, paying for your daughter’s wedding, or buying a house.
Moreover, some illnesses are more dangerous than others. If you are not prepared for them, they can wreak havoc in your life. That is where critical illness insurance comes into play.
This article will discuss the benefits and features of critical illness insurance that will help you make an informed choice of adding it to your investment portfolio. Let us discuss it in detail.
What Is Critical Illness Insurance?
As is with other life’s eventualities, health problems may also arise unexpectedly. As a result, you may be faced with a financial burden due to expensive treatment costs. Most of the time, your family may have no choice but to rely on their savings to pay for your treatment. But you can overcome this risk by adding critical illness insurance to your investment profile.
A critical illness policy is an insurance plan that provides you coverage against life-threatening diseases. Treatment of these illnesses would require you to visit the hospital multiple times for an extended period of time. The hospitalization costs, along with that of your medicines, consultation, etc., can add up quickly and spiral out of control.
However, when you are covered with critical illness insurance, your insurance provider will give you a lumpsum amount if you are diagnosed with one of the illnesses listed in your policy document. This amount can be used to not only pay for your treatment but also household expenses arising due to loss of income. The good thing is that the lumpsum amount is given to you in addition to the health insurance if you have any.
How Does The Critical Illness Policy Work?
When you are covered with a regular health insurance plan, your insurance provider will reimburse you for the expenses you incurred while being hospitalized.
Critical illness insurance, on the other hand, gives you a lumpsum amount that you can use in whichever way you want. You can either use it to pay for your treatment costs, pay for household expenses, or do both. The sum assured is released to you as soon as you are diagnosed with a critical illness listed in the policy document.
Benefits Of Critical Illness Insurance
Here are some of the reasons why you must consider availing of a critical illness insurance policy.
- Income replacement
Imagine if you were to suffer from a stroke, paralysis, or cancer, your life is likely to come to a standstill. You may or may not be able to resume your regular work life. What happens to your day-to-day expenses then? Who will pay for the ongoing medical costs?
Well-suited critical illness insurance will take care of these costs and lots more. You can claim the sum assured and use that money to replace the lost income. This is especially useful for people who are sole breadwinners of the family.
- Tax benefits
You can not only avail tax rebate on the premium paid for your critical illness insurance, but you can also enjoy tax-free claims. The sum assured released to you after being diagnosed with a critical illness is tax-exempted as per the prevailing tax laws in India. Thus, you get to keep all the money that you can use for a wide range of purposes.
- No restriction on the use of money
A health insurance plan will only pay for your hospitalization, that too directly to the hospital. There is no exchange of cash, and you must be hospitalized for a certain period of time to be eligible for the benefit.
But a critical illness policy becomes active as soon as you are diagnosed with a serious illness covered in your insurance document. Once the amount is released, you are free to use it whichever way you want. The insurance provider exercises no control over the benefit released to you.
- Peace of Mind
With the comprehensive coverage of critical illness insurance, you can rest assured that you will have the financial support of your insurance provider when you need it the most. You don’t have to dig into your precious savings to pay for your treatment.
Moreover, with access to this amount, you will be able to afford quality treatment without worrying about money.
Stressful lives and a poor lifestyle has made critical illnesses common. If you don’t already have critical illness insurance, you must start looking for a reliable insurer, such as Max Life Insurance, to cover your health risk. Be sure to study the policy benefits and features before investing.