Posted On: 2022-03-03 10:21:59
Have you ever thought about what your life would look like if you were diagnosed with a critical illness? As they say, forewarned is forearmed, it is good to have a plan in place. Here comes the role of medical insurance. Medical insurance provides protection and coverage against medical expenses incurred owing to accidents, illness, or injury.
Similar to medical insurance, Critical Illness Insurance is a type of policy that covers medical expenses for life-threatening illnesses such as cancer, heart attack, kidney failure, and so on.
Let us know more about this financial security that everyone should have - Critical illness insurance.
In a critical insurance policy, the insurance company pays a lump sum amount, equal to the sum insured, in case a beneficiary is diagnosed with a life-threatening disease that is covered by the policy. No matter what the hospital expenses are, the insurer pays the entire sum insured. During troubled times, this policy can take care of the high medical expenses while you can concentrate on regaining your health.
On the other hand, medi-claim reimburses the hospital expenses incurred. You can use this policy whenever you are hospitalized.
Today's standard of living can be stressful. Financial stress can add to the burden. In these times, being diagnosed with a critical illness can be emotionally devastating. Buying critical illness insurance provides financial security, and ensures that future savings don’t get affected during the time of an emergency. A critical illness cover relieves you from financial stress which can help you lead a healthy & secure life. It is essential to buy a critical illness insurance policy, considering that a health insurance policy will not be able to fully cover the hospitalization expenses along with other related medical expenditures.
Critical illness insurance provides cover and protection against some specific illness that is life-threatening. The list might differ from company to company, yet below are the illness that most of the insurance companies provide financial security against:
Cancer
End-Stage Kidney Failure
Primary Pulmonary Arterial Hypertension
Multiple Sclerosis
Major Organ Transplant
Coronary artery diseases requiring a bypass or other surgery Aorta Graft Surgery
Heart Valve Surgery
Stroke
Myocardial Infarction (First Heart Attack)
Coma
Total Blindness
Paralysis
Terminal illness Chronic liver disease
Chronic lung disease Major head trauma
Brain surgery (Craniotomy)
Parkinson’s disease
Even if you now know which illnesses are covered by critical illness insurance, you may be wondering, "Do I really need it?"
Yes, of course! Everyone should obtain medical insurance for their own safety, however, critical illness insurance is more important for the following reasons:
Individuals with a family history of an illness: If a critical ailment runs in the family, it increases the risk for other family members as well. Thus, it becomes essential to have a critical illness cover.
Individuals with high-risk occupations: Several studies show that those who work in high-pressure environments are more likely to suffer severe diseases.
Individuals above a certain age bracket: Once you cross a certain age, usually 40, the risk of critical illness increases. Hence, having a critical illness cover will set the stage for a better future.
Buying medical insurance is necessary for financial security during a medical emergency. Individuals with a risk of serious health ailments have a greater need for medical insurance that specifically provides protection and coverage against certain illness expenditures. It comes with a number of benefits like:
Critical illness covers provide financial security to a greater extent. The treatment for a medical emergency or a long-term condition can exceed your planned budget. Regular medical insurance might fail to cover some critical illnesses. A single therapy or surgery may be enough to wipe out a lifetime's worth of savings.
As a critical illness policy covers specific critical illnesses, it offers a more significant cover at a price lower than other comprehensive medical insurance plans.
Critical illness payouts are exempt from taxes under Section 80D of the Income Tax Act.
A critical insurance policy covers you even when you avail of the treatment in a foreign country. This means that the policy can assist you also if you need to go abroad for further medical treatment.
Although, medical insurances are necessary, and they come with a number of benefits; they might cause some inconveniences:
A disadvantage of a critical illness plan is that the payout is applicable only when a critical illness is diagnosed. This means that you will be covered only if a doctor confirms that your illness concurs with the policy’s definition of ‘critical’. In all other respects, no payment is made.
The second drawback is that insurers define critical illnesses in a limited way. As a result, even if you are diagnosed with a serious condition covered in the policy, there is no certainty that you will receive the sum protected.
But these are nearly negligible in front of the benefits they provide and that is why purchasing critical illness insurance will be a wise decision.
Today, millions of people are afflicted with life-threatening illnesses like different kinds of cancers, stroke, cardiovascular failure, kidney failure, and others. Every day is a health challenge for those who have been diagnosed with such diseases and high treatment costs can cause additional stress to one’s life. An insurance plan that can cover such unforeseen critical illnesses acts as an umbrella to protect oneself and immediate friends and family from financial burden.
Author: Anjali Patel
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