Is it smart to buy a critical illness insurance plan?

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Is it smart to buy a critical illness insurance plan? (Image: Shutterstock)
Is it smart to buy a critical illness insurance plan? (Image: Shutterstock)

New Delhi : Any critical illness is like an unwelcome guest. It takes a considerable toll on your health and wealth. Every day, we hear about this growing epidemic all over the world. 

Moreover, continuous diagnosis, hospitalization, treatment, dialysis, medicines, and doctor's fee creates a hole in everyone's pockets. What is the solution, you ask? Well, a comprehensive critical illness policy is the ideal solution. 

You may think, how? Well, it will ensure to protect you from financial loss. Especially if you require protection against serious diseases that require expensive treatment, then a critical illness policy will be a boon for you. Remember that, like all insurance policies, it is vital to avail critical illness insurance before the need for it arises. 

How Does Critical Illness Insurance Work?

Almost every critical illness policy works on a simple principle. If you are detected with any of the covered critical illness, your insurance company will pay the sum insured as a lump-sum amount. 

Still, before you buy a plan, it is a must to check the chosen critical illness policy's waiting period. The lesser the waiting period will be, the better for you. Some insurers allow you to pay a higher premium for a shorter waiting period. 

Because of the sedentary lifestyle, an increasing number of individuals suffer from life-threatening diseases or critical ailments. Critical illnesses like cancer, lung diseases, and other chronic health ailments are on the rise. These are costly to treat and lead to financial loss in case you, as the breadwinner of the family, are diagnosed with a problem. 

World Health Organization has projected that diabetes is a growing problem in India at 8.7 % in the age group of 20 to 70 years. Some common factors behind this are rapid urbanization, increasing life expectancy and unhealthy diets. Thus, to counter these issues, the best way is to opt for a critical illness policy at a young age. 

Furthermore, there are other factors too that make buying critical illness insurance a lucrative option like:

1. Lower Premiums

All insurance premiums are decided based on a variety of factors. It includes the age of the policyholder as well. If you are young, you will have to pay less expensive premiums because your health will be better. Plus, you will have a lower probability of contracting a severe disease. 

However, if you let it be and later plan to opt for a critical illness policy, the insurer may charge a higher premium. Plus, if you do ever require coverage, the long time you have paid premiums will ensure a more straightforward claim settlement process. 

2. Lump-Sum Payment for Treatment

If you research, you will find that critical illnesses are often more expensive to treat than regular diseases. Resultantly, critical illness insurance plans generally provide lump-sum payment for diagnosis and treatment. Some insurers may also cover post-operative care. 

It is a crucial aspect of any critical illness policy since cases abound people not seeking appropriate treatment because they are not affordable. The rising medical inflation also demands that you have a critical illness policy just if you ever require it. 

3. Coverage for Related Expenses

If you have a possibility of having a heart condition due to family history, you have to think of future expenses in case of emergencies. You may have to travel to a different city or country to seek the requisite treatment. 

Around this critical time, your family members or friends may accompany you too. All this expenditure on top of your treatment cost can be extremely costly for you. But if you have heart insurance, a type of critical illness policy, you may get coverage for these miscellaneous expenses too. 

4. No Change in Family's Lifestyle

If you are diagnosed with an acute disease, it may affect the entire family's lifestyle. This is particularly true for those who are the sole bread-earner of your family. It is but natural that your loved ones will work towards saving funds to aid your recovery and compromise on living as comfortably as they are used to. 

But with a critical illness policy in place, they will not need to cut down their expenses and continue living their lives comfortably. Instead, they will be able to take care of you better without worrying about the expenses. 

What are the Benefits of Critical Illness Insurance Plans?

Primarily, as discussed above as well, it acts as an income replacement. With the lump-sum amount, you can also cover household expenses when there is no income earning. 

The critical illness insurance payout is tax-free. 

One of the most advantageous benefits of critical illness insurance plan is that many insurers also cover treatment taking place in a foreign country. Most insurers on the diagnosis of a critical ailment pay a fixed sum, irrespective of whether the treatment takes places in India or abroad. Thus, the critical illness policy will help you if you need to go outside the country for medical treatment. 

Buying a critical illness policy at a young age will save you from mental stress and financial turmoil later. So, it is better that prepare against the unforeseen beforehand with an all-inclusive critical illness policy.