Finance

Unique Benefits of Critical Illness Insurance Plans

With the advent of new insurance players entering the market, there are a variety of insurance plans to choose from. It is a perplexing situation to make the right choice of a health insurance cover. You may think that a standard or a group health insurance plan may be sufficient, but it does not offer comprehensive protection at all times.

It may come off as a surprise when you carefully read through the policy documents to know not all ailments are covered. Some fatal diseases like cancer, Parkinson’s, Alzheimer’s, and the like are out of the purview of your standard or group health plan.

With the increase in chronic health conditions, it is not only stressful to treat them, but also leads to draining of your savings. Moreover, the skyrocketing costs of medical treatments make it more financially stressful. At such times, it is always advisable to opt for medical insurance that offers protection against such life-threatening ailments.

One such type of health insurance that you can opt is called critical illness insurance. Branded by various names by each insurance company, it is an absolute necessity to have one in today’s times.

So what exactly is critical illness insurance?

Critical illness insurance is a policy where the insured receives a lump sum amount on detection of the pre-specified critical diseases. On detection of the specified illness as per the insurance document, the insurers offer the entire sum assured to the policyholder. This payout is provided to not only meet the cost of treatment but also to maintain a livelihood.

Now that you know what a critical illness cover is, you might wonder which diseases are covered under such health insurance. While the answer to this differs among each insurer, there are a few common ailments.

Heart attacks, open chest coronary heart operations, cancers of different intensity as specified, diseases of the kidneys, any organ transplant, paralysis treatments are some to name a few. For detailed coverage, you must check the policy documents of your medical insuranceplan.

With the rise in the number of cases for the above ailments, it is imperative to include a critical health cover in case of a contingency. Some of the benefits are listed below –

  • Supports income for a brief period – These ailments being life-threatening, one often witnesses the loss of income due to the prolonged duration of the illness. At such times, a lump sum payment of the sum assured by the insurer can help the policyholder to stay away from debt traps. Apart from medical costs, other ancillary costs are incurred in the recovery stages for which this income can be a supporting factor.
  • Tax Benefits – The premiums paid, just like a standard health cover, are eligible for a tax deduction under Section 80D of the Income Tax Act.
  • Mental Peace – Knowing that there is a backup option in case of such an emergency, one can focus on medical treatment instead of the finances. This situation is true, particularly in the case of a breadwinner undergoing treatment.
  • Treatment in Foreign Countries – Some insurers offer their critical illness policies for availing treatment in foreign nations too. It does not restrict you to avail treatment within India and can be opted in a foreign hospital.

So remember the next time you buy or renew health insurance, avail a critical health cover to keep yourself secure for such extreme situations too.

 

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