Understanding Critical Illness Insurance And How To Choose One in India

Health-related insurance policies or investment plans have become the need of the hour to ensure financial security to any family.
Understanding Critical Illness Insurance And How To Choose One in India
A critical illness is a major life-turning moment for any family as it might prove fatal and can change the course of any family’s future events.Pixabay/Free Image

The Coronavirus outbreak has made people realize the importance of self-care and regular medical check-ups in such a shorter time. As a result, the health care in India has been making enormous changes in their medical practices and methodology to survive the deadly virus with minimal casualties.

People have started purchasing the necessary health insurance policies, critical illness insurance, and endowment plans to minimize the damage if anything happens. The never-ending lockdown restrictions have made people very concerned about their unpredictable future, forcing them to consider various health or life plans investments.

Health-related insurance policies or investment plans have become the need of the hour to ensure financial security to any family. The astronomical increase in medical expenses over the past decade has posed a significant burden on the finances of an ordinary person. A critical illness is a major life-turning moment for any family as it might prove fatal and can change the course of any family’s future events.

A standard health insurance policy might not be able to cover the colossal expenses happening due to the serious medical condition, which is where a critical illness insurance policy will prove effective.

What Is Critical Illness Insurance?

Critical illness insurance is the type of insurance that provides the policyholder with a lump sum benefit on diagnosis of the policy’s listed critical illness or long-term medical conditions requiring surgical treatment.

The standard critical illnesses covered under the policy include heart attack, major organ transplants, cancer, lung failure, multiple sclerosis, coma, third-degree burns, total blindness, renal failure, brain surgery, etc. In addition, the policyholder can obtain a pre-decided lump sum in the case of getting diagnosed with any of the critical illnesses under the term of the plan.

Why Are Critical Illness Plans Necessary?

  • Growing Illnesses

In today’s world, critical illnesses like heart attacks or cancer are on the rise, and many younger people have started getting these conditions, which was not the case earlier. The unexpected spike in critical illnesses has caused an extensive concern among people to protect their family financially and emotionally during these adverse circumstances. Critical illness insurance of any kind requires immediate and intensive treatments, which will cost a fortune for any family.

  • Costly Medical Treatments

The medical treatments for any critical illness are pretty expensive that they may bring down an entire family’s life savings within a shorter time frame. So, an individual should carefully plan and design the best critical illness insurance plan that will pay for all the medical expenses occurring during the entire course of the serious medical ailment.

  • Flexible Use Of Benefits

The critical illness insurance policies offer various benefits which the policyholder can use in any way they want. For example, the insured member will receive a lump sum amount of money that they can use to receive the advanced medical treatments or pay off any other financial liabilities they have.

  • Tax Advantages

The critical illness insurance plan will provide significant tax benefits to the policyholder under the government regulations. The policy’s premium amount paid for the critical illness insurance plan is allowed as a tax deduction from the insured member’s total income, helping the policyholder save some high amounts for the future.

How To Select The Best Critical Illness Insurance In India?

Insurance companies offer various critical illness policies in India, and it is necessary to buy the right plan to meet all your needs and requirements. Buy the best critical illness insurance plan only after comparing different critical plans available in the market and considering the following elements:

  • Listed Illnesses

Most insurance companies will provide a critical illness insurance policy covering all the standard medical conditions like heart attack, kidney failure, etc. Still, some may exclude a few common illnesses from the policy’s list, which might play an important role in the policyholder’s life later on. So, make sure that the critical illness insurance has coverage for a wide range of illnesses since the more extensive the scope, the better the plan.

  • Sum Insured Limits

Any critical illness policy will have a specified coverage level, and the individual must look for these limits in every insurance plan. Consider the plan that almost matches your coverage requirements with the allowed coverage limits and buy the policy which provides the coverage amount you require.

  • Premium Costs

Most critical illness insurance policies have a considerably low premium price and are easily affordable by the common person. The premium rates of the critical illness plan are kept at a significantly low range as it covers only the medical expenses of the listed critical illnesses mentioned in the plan. So, choose the plan that offers you the best critical illness benefits at an affordable premium cost.

The critical illness insurance policy is an essential plan for those people who have critical illnesses in their family history, the sole bread-winner of the family, and other demanding reasons. In an unpredicted and fast-moving world, having a critical illness insurance policy benefits individuals and their families in case of any eventuality. Use a critical illness insurance policy to understand its benefits and functionalities and keep yourself and your loved ones protected from any medical emergencies.

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