A highly sedentary lifestyle has increased the chances of life-threatening diseases. The cost of treating a critical illness is considerably high, and it derails our financial goals. Therefore, we must always buy a critical illness insurance plan and any other health insurance policies for ourselves and our family members.
Why do we need a Critical Illness Insurance Plan?
We often plan for our future, but medical emergencies do not let us move ahead as planned. It takes one such event to deviate us from the usual course of life. It is estimated that one out of three individuals encounter such an event in their life when they have to deal with life-threatening diseases. These could include kidney failure, paralysis, heart-related ailments, brain tumor, etc. The rise in such incidents has made it extremely important to invest in a critical illness insurance plan.
The treatment procedure for any critical disease lasts longer than usual and requires special attention and care. A good critical illness insurance plan covers medical expenses over the entire period.
Statistics say several people sell their assets to pay for necessary emergency treatments. Any usual health insurance policies would not be sufficient to treat a critical illness. Various things contribute in making it a critical illness. It is essential to understand the criticality and plan accordingly. With a critical illness insurance plan, the sum received from the insurance company helps reduce the individual’s financial stress.
Benefits of a Critical Insurance Plan
- A critical illness insurance plan covers the cost of treatment even in a foreign country. Under this plan, you get a fixed sum when the critical disease is diagnosed. The place of treatment does not matter to the insurance provider.
- The critical illness insurance plan premium can be claimed as a deduction up to Rs. 25,000 under Section 80D of the Income Tax Act, 1961. For individuals above 60, the deduction limit is up to Rs. 75,000. Even the payout received from the critical illness insurance plan is tax-free under section 80C of the Income Tax Act, 1961.
- The lumpsum benefit received post-diagnosis can be used to treat the disease and meet your household expenses if you are incapacitated.
- The claim settlement process is quick and hassle-free after the insure files the documentation with the insurance company.
- The chances of survival increase tenfold as the insure can use the amount received from the plan to get the best treatment possible. It eliminates the waiting process of arranging funds and fastens the treatment.
- Another benefit of this policy is buying it as an add-on cover over your regular health insurance policy.
How to decide the sum assured amount?
We must assess our need for the sum assured based on our income, age, and lifestyle and many other factors also decides the amount of sum assured in health policy. One of the most frightening things when dealing with such an illness is not having sufficient funds to treat such a condition. We must get a rough estimate regarding the same and pick a plan accordingly from the available options in the market.
Investing in a critical illness insurance plan is essential to protect yourself from expensive treatments for such diseases. You can also buy it as a top-up plan over your standard health insurance policies or choose a family plan covering critical illnesses. It will cover the cost for your spouse, children, and dependent parents as per the policy.
We should compare the prices and read the terms and conditions offered by different insurance providers. That would give a good picture of the available options and make it easier to pick the best critical illness insurance plan.