With a sedentary lifestyle, poor eating habits, and stressful lives, lifestyle disorders have become a scary reality. You may not know this, but one in four Indians are suffering from non-communicable diseases such as cardiovascular ailments and cancer before the age of 70 years.
Even though a lot of these issues can be overcome with a healthy lifestyle and a regular exercise routine, it is still advisable to protect yourself with a comprehensive health insurance policy to pay for any unforeseen medical expenses arising out of lifestyle disorders. Not taking proper measures can lead to expensive treatment costs and drain your financial savings in paying for the treatment costs.
If you already have a health insurance policy, then you can also consider supplementing it with Critical illness policy for an added layer of protection. Considering the change in life patterns and poor dietary habits, it is no news that heart attack is typical even amongst 35-year-olds!
To understand how critical illness insurance works, let us talk about it in detail.
Critical Illness insurance Vs Medical Insurance
You may already have a health insurance policy in place to reimburse your medical expenses and cover your hospitalization costs. However, critical illness insurance offers a benefits plan that pays you a lumpsum amount as soon as you are diagnosed with a critical illness that is covered in your insurance policy.
In a regular medical insurance plan, the sum insured is not that huge, and they only pay for expenses incurred during hospitalization. Critical illness, on the other hand, pays a much higher sum insured to help you pay for every treatment–related expense incurred due to your illness. A critical illness cover is specifically designed to help you with not just medical bills but also the cost of medical tests and loss of pay due to non-productive days. But most importantly, your health insurance policy may or may not cover critical illness. However, critical illness insurance will certainly provide you with a comprehensive cover for all the conditions covered in its policy document.
Also, regular medical insurance policies may attract a higher premium because it covers a broader scope of events. As a result, the premium charged is also higher. On the other hand, critical illness insurance covers only a set of life-threatening illnesses. If you are diagnosed with any one of the covered illnesses, then the entire sum assured is released to you as a lumpsum payout. There is no saying how useful this amount can be at such a testing phase in your life. Critical illness cover gives you higher coverage at a lower premium.
A regular health insurance plan includes hospitalization due to an accident or a medical illness. The cover only pays for pre and post–hospitalization expenses. Critical illness insurance, on the other hand, covers events that fall outside the purview of a regular health plan. Don’t forget to factor in costs like travel, loss of income, boarding, and postoperative care when you are suffering from a critical disease! These funds can be used for all that and more, including the lifestyle change that is required to prevent such illnesses in the future.
Benefits of Critical Illness Cover
The number of critical illnesses covered in the medical insurance policy may vary from insurer to insurer. Some of the common ones include cancer, organ transplant, heart disease, and kidney failure, to name a few. You can choose the coverage amount as per the premium you can afford. Here are some of the benefits of critical illness insurance:
- Protects your savings: Your treatment will not have any impact on your savings as the cover will take care of all the expenses.
- Ensures quick medical treatment: Due to the fast claim process, your treatment can begin quickly without worrying about the money.
- No medical check-ups: Does not require medical check-ups before purchase.
- Tax Saving: Under Section 80D of the Income Tax Department, you can claim tax benefits up to Rs. 50,000.
A health insurance plan is a necessary investment in your financial portfolio. However, adding an extra layer of critical illness cover can increase the scope of your regular health insurance and make it more comprehensive. Buying an insurance cover requires research and understanding of the policy benefits before investment. Insurance providers such as Max Life enable you to review these policies online and compare them against benefits and premiums to make an informed choice.
You can either invest in a critical illness rider or look for a separate plan as per your insurance provider. However, it is crucial to note that both critical illness policies and health plans are essential. You must carefully review the benefits and inclusions under these insurance plans to make an informed choice.