Illnesses and diseases are an inevitable part of the modern lifestyle. And, the cost of their treatments is sky-high. With a substantial rise in the number of diseases and the ever-increasing medical expenses, there is a need to protect your finances. One of the ways to do is to opt for critical illness insurance.
Further, in this article, we will take a look at:
- A brief understanding of critical illness insurance
- Advantages of this insurance
- Need to buy a critical illness insurance
What is Critical Illness Insurance?
To put it simply, critical illness insurance is essentially a policy which offers coverage against life-threatening diseases such as renal failure, cancer, liver transplant, etc. The financial compensation provided by this insurance is in the form of lump-sum. This monetary support is received as soon as you are diagnosed with a critical illness which is covered under the plan. You can use these finances to pay for expenses incurred on the medical treatment.
Many critical illness insurances offer a survival period of 30 days, and the claim is settled on completion of the survival period.
What are the benefits of critical illness insurance?
- Easy pay-outs:
Perhaps one of the most important advantage. Critical illness insurance pays the insurer a full sum insured in lump sum irrespective of the hospitalization cost. You can use money received to pay for the treatment or any debt and recuperation expenses.
- Easy claim process:
Unlike most health plans, critical illness insurance has a comparatively easy claim process. Once you show your diagnoses to your insurance company, they will take care of all the financial support you require for the treatment.
- Lesser waiting period:
With critical illness insurance, the company processes your papers at a much faster pace. It also ensures that finances are made available before you start your treatment. Generally, the waiting period is up to 3 months. Hence, the sooner you apply, the better.
- Avail tax benefits:
Critical illness plans also offer tax benefits under Section 80D of the Income Tax Act. This is along with medical insurance.
Why do you need a critical insurance plan?
Given the inflation in the medical field, a critical insurance plan can come handy. The rising illnesses too make it is imperative to buy a critical illness plan.
However, before you buy a critical illness plan, it is important to know which plan suits you best. Hence, consulting a financial advisor is essential.