Due to changing lifestyles and unhealthy eating habits, one can get prone to some health issues. Health issues bring in some of the other costs of treatment attached with it. Rather than worrying about these expenses, it is always better to opt for a perfect health insurance plan that could help obtain the best treatment for any such health issue.
In the race to stay ahead and earn more, individuals often invite several health issues. Unfortunately, while working hard, individuals often keep health in the backseat. This brings some of the critical illnesses like cancer and heart attack. People often ignore these issues, but some of these major health issues come with huge expenses. It is thus better to stay prepared for such costs by obtaining critical illness insurance.
No health issues come with prior notification, and when an individual obtains insurance for critical insurance right before such issues knock on your door, one can get prepared to manage such issues without any stress of managing treatment expenses.
What Is Critical Illness Insurance?
General health insurance covers all the hospitalization expenses for general health issues; on the other hand, critical illness insurance policies are tailored to meet the expenses of particular enlisted illnesses.
There are certain diseases that are included in the list of critical illness insurance plans, and such plans only provide cover for these diseases. Such insurance covers all associated medical expenses that are linked to the enlisted diseases.
What Does Critical Illness Insurance Cover?
This is a specific insurance plan that covers some of the serious illnesses and their treatment expenses. These include:
- Kidney failure
- Heart attack
- Stroke
- Cancer
- Major organ transplantation
- Brain tumour
- Paralysis
- Alzheimer disease
- End-stage liver disease.
Difference Between A General Health Insurance Policy And Critical Illness Insurance
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Regular Individual Health Insurance Policy
This includes general disease, as mentioned in documents. It includes medical expenses that are incurred for those diseases. The amount is fixed, and coverage includes medical expenses, pre, and post-hospitalization bills, etc., and pays only for those treatments that are done in India.
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Critical Illness Policy
It covers the diagnosis and treatment of only those illnesses that are included in the list. Critical illness includes diseases that involve huge costs, and such insurance helps pay such costs in the easy possible manner. This covers expenses right when the disease is diagnosed. In addition, it includes treatment costs, whether done in India or outside India.
Benefits Of Critical Insurance
Critical insurance differs from general health insurance and brings in several benefits that are:
- It is an income replacement option – If a critical illness is detected, Critical illness insurance may involve payment of a lump-sum amount at the time when treatment of illness is required. This acts as an addition of finance to the family.
- It acts as a tax benefit – While paying a premium for such policies, it brings tax benefits for candidates. Under section 80D of the income tax act, a tax rebate can be obtained.
- It brings peace of mind – Critical illness policy brings peace of mind because it ensures to pay at times when required. This brings in mental satisfaction that candidates need not pay for treatment.
- It covers expenses outside India – Critical illness insurance differs from health insurance because it covers expenses of health issues outside India. Critical illness sometimes needs treatment outside India, and such policies cover all expenses abroad.
How Does Critical Illness Insurance Works?
It works just like a normal policy. In this policy, candidates keep paying the monthly premium decided when obtaining the insurance. The insurer pays the total amount at the time when the disease is detected. This may include medical expenses, pre, and post-hospitalization expenses, etc. Other than this, it also helps pay other expenses like loans and EMIs, children’s school fees, etc., if the family member is detected with some of the critical illness diseases.
The amount of this insurance is not limited to only medical treatment and can be used either way and thus, it may act as an income replacement option for the candidate.
What Amount Of Insurance Should Be Taken?
While obtaining a critical illness insurance plan, it is important to consider several factors like age, lifestyle, income, past medical history, etc.
It is always better to obtain critical illness insurance so that it gives financial support to ones’ family in case if any critical condition has been detected. In addition, it acts as a protection for the family when financial help is required, without having to compromise with medical treatment!
