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The Growing Significance of Critical Illness Insurance

critical illness insurance - Taxscan

With the growing instances of COVID-19 spread, individuals across all age groups are worried about the soaring treatment costs. For first-time insurance buyers who previouslyused to deprioritize the importance of having critical illness insurance, now, have realized why it is important to get insured as early as possible.Critical Illness Insuranceacts as financial support in case of being diagnosed with any type of critical illness.

Critical Illness insurance can both be brought as standalone insurance or as an add-on rider with life or health insurance.Choosing the best critical illness insurance is essential in today’s time as keeping a financial backup is necessary for unforeseen situations. Moreover, comprehensive critical illness insurance plans today, protectyou against death, disability, and dangerous diseases while also providing tax-savings under Section 80D.

Here are some things you must know before you buy the best critical illness insurance:

What Is Critical Illness Insurance?

Critical illness policy is basically an instrument of financial protection. During the policy term, critical illness insurance provides afinancial cover to the policyholder (insured) in case they get diagnosed with or suffer from any of the critical illnesses as mentioned in the terms and conditions.

Predominantly, some of the most common critical illnesses covered by insurance include:

  1. Paralysis
  2. Heart Attack
  3. Cancer
  4. Stroke
  5. Kidney Failure
  6. Major Organ Transplantation
  7. Primary Pulmonary Arterial Hypertension
  8. Benign Brain Tumour

How Critical Illness Insurance Works?

Critical illness insurance offers a lumpsum pay-out benefit to the insured individual in case of being diagnosed with a covered critical illness.

Under the insurance, the lumpsum paid can be used by the insured can be claimed for pay purpose such as handling household finances alongside the medical treatment. There is no constraint or limitations on the spending of the claim amount. Although, once the critical illness insurance benefit is paid, the policy comes to an end.

Importance of Critical Illness Insurance

Apart from the present risk of COVID-19, there are many other cases of severediseases and conditions such as cancer, lung disease or other chronic health conditions that are continuously growing. The treatment cost for such illnesses are not only expensive but also contributes to the financial burden of the family’s breadwinner when and if they get diagnosed with any of these critical illnesses.

In the absence of personal health insurance or critical illness insurance, many people end up spending their hard-earned savings on medical bills.Similarly, for those who already have health insurance, may not be adequately covered with a higher-sum assured as standard health insurance policies just take care of the hospitalization costs.

When a person is getting treatment for a critical illness, the cash outflow is not limited to just hospitalization expenses. It also entails other consequences such as inability to work, and difficulty in managing household expenditures, loan EMI’s, and school or college fees for children.So, take a look atthe top three reasons why you need to buy critical illness insurance:

  1. Income Replacement

Apart from being physically affected, critical illnesses also have a significant bearing on the family’s finances. The lump-sum amount that you obtain as a critical illness cover can be used for both medical and household expenses to avoid financial burden if the person who is suffering with a critical illness takes a break from work.

You and your family can easily handle reoccurring expenses such as medical bills, education few for your children, or any other necessary expenditure without a problem.

  • Significant Tax Benefits

The critical illness pay-outprovided is eligible for a tax exemption under Section 80D of the Income Tax Act. So, buying critical illness insurance does more than just protect you and your family in case of medical emergencies.Secure both your financial future and save on taxes with the best critical illness insurance.

  • Increased Chances of Survival

Critical illness insurance offers a huge coverage amount as pay-out, which brings peace of mind during unprecedented medical situations. With the lump sum you receive, you can concentrate on the medical treatment more thanrunning around trying to handle preventive and personal expenses.

Under critical illness insurance, a fixed amount is paid as a cover for diagnosis of a critical illness. So, when diagnosed with a severe ailment, you can use the lump sum for medical expenditures, irrespective of whether you choose to get yourtreatment in India or from abroad. Purchase the best critical illness insurance to increase your chances of survival multi-fold as you can afford the most exceptional medical care available.

Finding the Best Critical Illness Insurance

Critical illness insurance is essential to enable you to sustainsevereillness and control its consequences. The best critical illness insurances offer you and your family the financial ease, stability and support that is much needed at times of crisis. It is suggested that you either buy a standalone critical illness insurance cover or opt for an add-on critical illness insurance rider on your existing health insurance to ensure comprehensive protection when needed the most.

Critical illness insurance is both a flexible and affordable way to provide a shield for your family. Nevertheless, to get the bestcritical illness insurance benefits, you must be careful and cautious while buying it. You can compare all available options online for a quick evaluationand select the best critical illness insurance.

You will also use their online premium calculator for a better understanding of the premium break-down and other options that you can choose from. So, make the right decision and buy the best critical illness insurance for yourself and your loved ones today!

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