The rise in severe illness cases in India can be attributed to a variety of factors. According to the Global Burden of Disease Studies, critical illness accounts for nearly 60% of all deaths in India. Curing serious health problems is a time-consuming and expensive process that is often out of reach for ordinary Indian families.
Furthermore, the cost of medical treatment is increasing year after year, and a basic health insurance plan is insufficient to cover the treatment costs. The patient must bear not only the cost of hospitalization but also the loss of income during the period. This is why critical illness insurance is so important today.
What is Critical Illness Insurance?
A critical illness plan is a defined policy that reimburses you for the entire sum assured if you are diagnosed with any of the critical illnesses covered under it. Once you are detected with the disease, you will be paid a lump sum. You have the freedom to select the location and doctor for your treatment; hospitalization is not required in this case. Most claims have a 30-day survival period, after which the claim is settled.
What are the Advantages of Critical Illness Insurance?
A critical illness cover has several advantages over the normal health policy, some of the benefits are:
- Lumpsum Payment
When you are diagnosed with the disease, the insurer pays the full sum assured. As a result, the lump-sum payment can be used to cover hospitalization costs or any other related expenses.
- Easy Claim Process
The policyholder receives payment without having to be hospitalized. The diagnosis reports submitted are used to process the claim.
- Less Waiting Period
The policy will go into effect after a 90-day waiting period.
- Avail Tax Benefits
The policyholder is entitled to tax benefits under section 80D of the IT Act, 1961.
Why Should You Buy a Critical Illness Plan?
The increasing prevalence of life-threatening diseases among today’s youth is concerning. As patients’ ages decline, medical inflation has made treatment of critical diseases prohibitively expensive. Critical care insurance ensures that you receive high-quality care at the best hospitals while remaining stress-free. Other factors to consider are as follows:
- Family History of Critical Illness
If you have a family medical history of a serious ailment, such as cancer or heart disease, you are more likely to contract the disease due to genetic makeup. Such people should be proactive in buying critical illness insurance to secure their future.
- Family’s Sole Breadwinner
If you are the primary breadwinner of the family who is diagnosed with a serious disease, it can throw the entire family’s finances into disarray. People who have critical illness insurance, on the other hand, do not have to worry about the cost of treatment and can live their lives comfortably. They have the resources to take care of the sick person without difficulty.
What are the Criteria for Selecting a Critical Illness Plan?
The following parameters can help you in selecting the right critical illness policy:
|Sum Assured||The policy’s total worth. In the event of the policyholder’s death, the insurance company pays the value in one lump sum.|
|Waiting Period||Prior to coverage taking effect, there is a 30-day waiting period.|
|Survival Period||Between 30 – 90 days|
|Number of serious diseases covered||Between 8 – 36 (Depending on the company)|
|Renewability Age||Life long or Maximum age|
Before purchasing the policy, you should thoroughly examine all of the parameters. You can also use the critical illness premium calculator to determine the appropriate premium amount.
It is in a person’s best interest to buy critical illness insurance as soon as possible. It relieves him of mental stress while also ensuring quality treatment and securing the family’s future financial interests.