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Critical Illness Plan: Is it Waste of Money or a Financial Shield in Medical Emergency?

  By : , Hyderabad, Andhra Pradesh, India       12.9.2018         Mail Now

Medical emergencies can strike anytime and if you are not prepared for it, you may come across a huge financial crisis. In India, while the medical facilities have improved, the cost of medical treatment has increased especially in the case of critical illnesses. Better financial planning helps to secure your future against any unwanted medical and consecutively financial crisis. That’s why insurance experts recommend buying a health insurance plan that covers critical illnesses. Additionally, if you have a family history of critical illness, then it is a must to safeguard yourself against any medical emergency that may strike in the future.

What is Critical Illness Insurance?

Let us start by understanding the basic definition of insurance and then we will move to critical illness insurance.

Insurance - It is a mutual agreement between an insurance company and insured. The insurance company promises to provide compensation for any losses, damages, or expenses incurred by the insured’s treatment. The insured pay fees in the form of premiums for the services provided by the company.

Critical Illness Insurance - It is a type of health insurance plan wherein an insured gets a fixed amount of money upon diagnosis of pre-specified critical illnesses during the term of the policy. Generally, a lump sum amount is paid to the insured that can be used to pay for the treatment expenses.

In addition, some critical illness insurance plans offer benefits not only in case of diagnosis of various critical illnesses but in case of personal accidents as well.

Advantages of Having a Critical Illness Plan

The scope of coverage offered by critical illness health plans is wide. Because of that, it attracts larger premiums as compared to a basic health insurance policy. If you are thinking that buying a critical illness policy is a waste of money, read the benefits of buying a critical illness plan mentioned below.

You get a lump sum amount upon diagnosis of critical illness: If you have taken a critical illness insurance policy and are diagnosed with a critical illness, you will get a pre-decided lump sum amount. This lump sum amount provides a much needed financial cushion and you can undergo quality healthcare for the treatment of diagnosed critical illness.

A critical illness cover is ‘tax-free’: Yes, you read it right. The premiums paid for critical illness insurance are not taxable. You can easily claim tax benefits at the time of filing your Income Tax Return. Moreover, the lump sum amount you get from the insurance company after diagnosis of the critical illness is also tax-free.

No treatment-related financial crunch: The treatment expenses for critical illness can cost you a bomb. Without critical illness coverage, the medical emergency would be converted into a medical emergency in no time.

Having critical illness coverage ensures that you don’t have to worry about the treatment expenses. The lump sum amount you get from the insurance provider can be used to pay for the incurred treatment expenses.

To bear out-of-pocket medical expenses: In order to undergo treatment for critical illness treatment; one may require travel to some other place. The travel cost may come up as an out-of-pocket expenditure. To pay for such unexpected yet unavoidable expenses, you require funds. With the help of a critical illness plan, you can easily pay for such expenses.

Stress-free recovery: Having a financial backup in case of critical illness safeguards you and your family against any financial crisis. Additionally, it provides you the much-needed peace of mind. If there is only one earning member in the family and he/she has developed a critical illness, then there can be huge financial issues. A critical illness plan takes care of your financial needs and ensures a stress-free recovery.

The Best Time to Purchase Critical Illness Plan

If you have a family history of critical illness, it is a must to opt for a critical illness plan. Additionally, it covers personal accidents. It is one of the best insurance solutions to stay covered against expenses incurred and injuries caused due to a road accident.

At this point in time, you may think about the best time to purchase a critical illness plan. Or one question might pop in your mind- when is the right time to purchase a critical illness policy?
Here is one of the most crucial things that you must remember before purchasing a critical illness insurance plan. You should purchase a policy while you do not have any critical health issue. Once you are diagnosed with a critical illness, you will not be able to purchase a policy.

So, the best time to buy a critical illness insurance plan is when you are perfectly healthy and that is now!

Summing it up

The health care costs and the treatment cost of critical illness are going to increase day by day. You ought to purchase a critical illness plan as soon as possible. In the hour of need, it acts as a blessing in disguise for you and your family. It will safeguard you against any financial crisis that may arise due to a covered critical illness.

It not only provides financial security to you and your family but also gives you peace of mind as you will be completely prepared for any health odds that may come to your way. Therefore, ‘now’ is the best time and today is the best day to get a critical insurance cover.

In order to avail comprehensive coverage against personal accidents, you can buy accident insurance plan. It will widen the scope of insurance coverage.

TAGS: Critical Illness Plan,   Insurance,   Insurance plan,   advantages of having a critical illness plan,  

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