Most people make the mistake of assuming that their standard health insurance is enough to protect them in case of medical emergencies. However, the exorbitant cost of treating a critical illness is usually much more than a regular plan can cover. That is the reason you need critical illness insurance. When you face a health emergency, this insurance is all that you have between you and your savings.
In this article, we will tell you why you need to invest in a critical illness cover.
Reasons to invest in a critical illness insurance
In simple terms, health insurance meaning is taking out insurance that covers the cost of medical care. However, it often just caters to expenses before, after, and during hospitalization. So what happens when you are diagnosed with a critical illness? Unfortunately, not all insurance plans will cover you for lifestyle disorders or terminal diseases, such as cancer. In the absence of this policy, you risk losing all your savings in paying for the expensive treatment.
However, critical illness insurance covers the costs that may arise when you are diagnosed with a critical illness that interferes with your ability to work or maintain a steady income. Unfortunately, we are living at a time when these illnesses are not just limited to the aging population. Younger people are also at risk of being diagnosed with life-threatening diseases, such as cancer or stroke.
Imagine if you are the family’s sole breadwinner and you are diagnosed with a critical illness. It will not only hamper your flow of income but also target your savings to pay for treatment. For these emergencies, one needs to invest in critical illness insurance that can either be taken as a standalone policy or as an add-on benefit.
Here are some reasons why you need this policy as part of your health insurance plan.
1. Protects you against sudden liabilities
You can get diagnosed with a critical illness unexpectedly. For example, a heart stroke may occur suddenly, and it becomes impossible to take precautions against a condition that you didn’t even know existed. So the occurrence of these ailments can eat into your savings if you do not have a critical illness cover.
2. Poor lifestyle choices
It is regrettable, but critical illness has become more rampant today between the age group of 25 to 55. This is mainly due to stressful lives and poor lifestyle choices that prevent you from maintaining healthy habits, such as exercising. As a result, your health is getting compromised over years without you even knowing about it. This can expose you to the risk of one of these critical diseases that can appear unannounced.
3. Disability cover
Even though you can cover the disability risk by taking separate insurance, a critical illness plan can cover costs arising from it. The treatment for such ailments may cost a lot and leave the affected person incapable of working anymore. If the disability remains uncured, it can mean being home-bound for the rest of their lives. A critical illness insurance coverage can protect you against these risks by assuring you a significant sum assured that you can use to pay for daily expenses and treatment costs.
4. No proof required
While regular health insurance requires you to submit bills and proof to get your claim, a critical illness plan will give you the complete sum assured upon diagnosis alone. In addition, you do not need to produce any evidence for treatment or hospitalization to avail of this benefit.
5. Covers rising healthcare costs
Healthcare in India has become increasingly expensive over the years due to advancements in medical technology. Some of these treatments may become inaccessible to people who do not have additional cover to pay for these costs. By taking out critical illness insurance, you will be able to afford quality care without worrying about the medical bills or rising cost of healthcare.
Contrary to popular belief, critical illness covers are quite affordable and offer lower premiums than standard health insurance plans. This is because health insurance will cover multiple conditions, but a critical illness plan is only required for certain diseases.
7. Large sum assured
A critical illness cover usually offers a large sum assured for a very low premium. They also cover for a much longer tenure. Some insurance companies also give you the option of lifetime renewability.
There are many benefits of critical illness insurance that make it necessary to add to your existing health insurance cover. You can also buy it as a comprehensive standalone policy. However, be sure to assess all the costs and benefits before investing.