What is Critical Illness Insurance Plan and Why Do You Need it?

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Critical illnesses are of different types that can take a severe toll over your health  such as cancer, cardiac arrest, lung diseases etc. The serious fact is that the cases are not only reported by the old aged generation but also by the youngsters and most of them are in their 40’s. The main reasons for the increase in the number of critical illness cases are due to the stressful lifestyle and polluted environment. Some of these diseases are genetic as well.

The person not only faces health issues, but when these critical illnesses affect a person, they also hinder his or her financial planning. However, to overcome this dependence on others or not to let the disease shatter your dreams due to financial problems, a health insurance plan becomes a necessity. And since we are talking about critical illness, you should consider investing in a Critical Illness Insurance policy.

What is Critical Illness Insurance?

Critical illness insurance coverage offers financial protection against certain life-threatening ailments. Critical illness includes most of the chronic fatal diseases like cancer, heart attack, organ transplant, stroke, coronary bypass, kidney failure etc. None of the treatments procedures of the above-mentioned diseases is cheap. With the advancements in the health sector, the costs of treatment are also going up. The latest technologies that are used to cure chronic diseases aren’t pocket friendly. Having comprehensive health insurance coverage gives you the peace of mind to opt for the right treatment without worrying about the expenses.

Why You Need Critical Illness Coverage?

You never know when the critical illness would knock on your door or maybe knock you down along with all your savings. The only precautionary step one can take is to meditate or be relaxed and stress-free. In fact, one of the doses to relax your mind is to have a secure and risk-free future. Having health insurance is as important as having good financial planning as they ensure that your money is invested in the right place and helps you live a peaceful life. There are different types of health insurance plans that cater to distinctive medical requirements. Critical health insurance is a specific type that centres on severe health illnesses.

These insurances are offered differently by various insurance providers. They cover different diseases and come with distinctive terms and conditions. In order to ensure that you make the right decision, make sure you go over your medical and financial needs beforehand. Thereafter compare what insurance companies are offering. It is imperative that you read all the pointers of the company properly prior to finalizing your decision.

Things to Consider Before Buying A Critical Insurance Policy

There’s no doubt in asserting that you need a critical illness policy to cover those unexpected medical expenses pertaining to your critical illness. Don’t bother your loved ones in the time of need; instead, take up a critical illness policy that will help you at the right time. There are a few things that you need to keep a few things in mind to make a well-informed decision. To make your decision-making process further easier, here are a few factors that you need to consider-:

Diseases Covered in The Plan

One of the foremost things you need to consider is the diseases that are covered in the plan. Generally, critical illness insurance includes around 30+ critical illnesses, within which some are long term consequences like heart attack, complete blindness, cancer, strokes, etc. So, make sure that you choose a plan that covers all the prominent critical illnesses. 

Difference Between Term Plan And Critical Illness Policy

A term plan is specifically for a death benefit or the maximum maturity benefit. In case you survive the policy tenure, the policy will be considered void. Critical illness is quite different; if you are suffering from any critical diseases, the plan will cover all your expenses without financially burdening your family. 

Waiting Period To Get The Assured Amount

There is a certain waiting period involved in getting the assured amount. Take a look at following criteria that applies to get the sum assured on the policy-:

  • Initial Waiting Period: The claim for the assured money will be accepted when your illness lasts for 90 days expiry period. 
  • Survival Period: To get the full claim, you need to survive for 28 days after being diagnosed with any critical illnesses mentioned in the policy. 
  • Waiting Period Between Claims: In case, you have created multiple claims, each will have a minimum amount of time between each other to get approved. 

Tax Benefits of The Policy

Tax benefits are one of the significant highlights of taking an insurance policy. Critical illness insurance policy is also entitled to tax benefits. The policy’s premium amount comes under tax-deductible, and the amount you receive from the critical illness claim is exempted from the tax. So, you need to be aware of the tax benefit that you get from a policy.

Eligibility To Claim The Critical Insurance

There is an eligibility to claim the critical illness policy that is when you are diagnosed with the disease. Once you are diagnosed with any of the critical illnesses mentioned in the insurance, the policy will be activated. The signs and symptoms of the critical illnesses are not valid to claim the insurance. You need to have a proper diagnosis report from a certified doctor that states you are suffering from a critical illness can be treated as the ideal eligibility to claim the critical insurance. There are many clauses to the critical illness policy, and eligibility to claim is one among them.

Final Thoughts

Life is really uncertain. While you cannot avoid uncertainties, you can certainly prepare yourself in different aspects, including financially. Critical illnesses are serious health concerns that may impact every aspect of your life. Therefore, invest in a critical health insurance plan will allow you to have financial security so that you can continue to avail the best possible treatment without any restrictions.




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