Critical Illness Insurance

Critical illness insurance covers serious and long-term illnesses that require expensive medical treatment. Most health insurance plans provide critical illness rider cover on payment of an additional premium that helps the insured pay for exorbitant hospitalization and treatment expenses. A Critical Illness Insurance policy covers the insured against life-threatening critical diseases such as cancer, heart attack, renal failure, etc.This Critical Illness Policy provides a lump sum coverage amount that can cover exorbitant medical expenses for critical illnesses as covered under the insurance policy

Health problems, in most cases, strike unexpectedly. In such cases, the burden of paying for treatment costs can fall on your family. There could also be a loss of income due to the illness. Most of the time, the family dips into their savings kitty built for either their child’s education or one’s retirement to overcome these expenses. But a critical illness benefit can offer the required funds at the right time.

Why should one buy a Critical illness benefit?

A Critical Illness benefit can help you cover expenses like doctor consultation fees, the cost of medicines, and more. You can use the money from a critical illness benefit to cover ambulance costs and room rent along with pre and post-hospitalization expenses. Besides, if you have any outstanding loans like a home loan or a car loan, the payout can help with dealing with the EMIs. The payout can also be used by your family as a substitute for your income which may be compromised due to an illness.

If you do not have a Critical Illness benefit, you may have to dip into all the hard-earned money that you have saved. The high cost of treatment can erode years of savings in just a few months. However, a critical illness benefit offers the financial support you need at the time and helps keep your other savings intact for their respective objectives.

Benefits of Critical Illness Insurance Plan

There are many benefits to getting a critical illness insurance plan. Some of these are:

  1. It can cover expensive medical bills for certain critical illnesses at an affordable premium amount paid at specific intervals
  2. It covers illnesses that many regular health insurance plans may not cover
  3. You get a significant lump sum amount in case of contracting a critical illness covered under the plan. This amount can even be used as a replacement for income.
  4. Tax benefits under Section 80d of the Income Tax Act

Difference between Critical Illness Insurance Plan & Health Insurance Plan

A health insurance plan covers all or a part of expenses incurred due to illnesses, accidents, or injury in exchange for a premium paid at regular intervals to the insurer. You can use the payout amount for hospital bills and medical expenses incurred before, during, and after hospitalization. It is advisable to get health insurance for any, as it can provide financial support in times of health-related distress. A regular health insurance plan may cover most primary illnesses, but it is best to read the fine print on any plan you may consider buying.

On the other hand, a critical illness insurance plan provides a lump sum amount in case the insured is diagnosed with a critical illness already predefined in the policy terms. The payout, in this case, can be used at the insured person’s discretion and doesn’t have to be limited to hospital bills. Ideally, a critical illness plan will cover illnesses that may not be included in a regular health insurance plan.

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