Why Should I Add Critical Illness Coverage?
Published On Sep 05, 2022
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A critical illness insurance cover, often known as critical illness insurance in layman's terms, includes insurance benefits you receive to treat serious illnesses that pose a threat to your life and a variety of lifestyle ailments.
In addition to the base plan's provision of life insurance coverage, the Critical Illness Insurance Cover is frequently designed to provide coverage for serious medical conditions including cancer, stroke, and kidney failure that require extensive treatment and may have a negative financial impact.
Advantages Of Critical Illness Insurance
It serves to replace lost income: Critical illnesses have a significant influence on the family's finances in addition to the person's physical health. A lump sum payment from critical insurance can be used to pay both household and medical costs.
Protection From A Number Of Chronic Illnesses
As previously noted, the critical illness rider will offer you financial security against a number of chronic illnesses, including, among many others, cancer, heart disease, stroke, kidney failure, organ transplant, paralysis, and liver disease.
Although the list of conditions that each insurer's policies cover varies, a critical illness insurance rider often aids in covering all major life-threatening illnesses.
Amount Guaranteed Upon Diagnosis
Plans for critical illness are fixed benefit plans. This implies that if you add a critical illness rider to your current health insurance policy, you will be entitled to receive a set sum of money should you be found to have any of the critical illnesses listed in the policy document. Regardless of the actual cost of your treatment, this amount will be paid to you.
Additionally, this money assured will be paid directly to you, so you can utilise it however you see fit. When you are unable to work, you can use it, for instance, to cover the costs of your treatment, medications, diagnostic tests, as well as your EMIs and your family's daily living expenditures.
Deal With The Significant Medical Costs
As was already established, the cost of treating and caring for serious conditions including cancer, heart attacks, and kidney failure can be extremely high. For instance, the average cost of treating cancer is estimated to be Rs. 10 lakhs, whilst the cost of treating other lung ailments can reach Rs. 20 lakhs.
Benefits Are Given Right Away Upon The Diagnosis
The insured receives the benefits of critical illness insurance as soon as a covered disease or condition is discovered. It implies that you won't have to wait long to obtain the guaranteed sum and that you can begin your treatment as soon as your condition is diagnosed.
Tax-Free Benefits Are Offered
The fact that the benefits of a critical illness rider are entirely tax-free is another important benefit of including one in your health insurance plan. The amount of money you receive from the insurer in the event that you receive a critical illness diagnosis and choose to submit a claim under your insurance will not be subject to income tax under the Income Tax Act of 1961.
The majority of diseases that are fatal are directly related to our way of life. Therefore, if you believe that you are also at risk, it is time for you to invest in the best critical illness insurance policy so that you can guard yourself against a variety of serious illnesses. You still need to get an individual health insurance policy, though. The critical illness plan should actually be added to your insurance portfolio as a second layer of protection after purchasing an individual health insurance policy.