3 critical benefits of critical illness insurance

Posted by amrina alshaikh on February 16th, 2022

One hears of people developing serious health conditions quite suddenly, and wonders if the same fate awaits them. As morbid as it seems, it is human nature to imagine a grim scenario for oneself. However, while some think about it for a while, others take punitive steps to ensure that the situation does not become a more serious one if it ever happens to them.

Take the case of one developing a serious illness like some form of cancer, or severe heart disease. Not only is the prospect of dealing with a potentially fatal disease a scary one, there are high costs associated with treating it as well. As a safety net, one can invest in a good critical illness insurance policy for the future, whether one has a critical illness or already has a health insurance plan for the family.

Consider the 3 most important benefits of taking a critical illness health plan:

#1 To supplement lost income.

A serious illness has a debilitating effect not just on your health, but also on your finances. Healthcare and treatment costs are already high in India. Treating a critical illness such as cancer or end stage renal failure, can cost lakhs of Rupees and make a huge dent in your finances. Meanwhile, the illness can make it difficult for you to continue working, albeit temporarily – thus, you are left staring at a loss of income in case you need to quit your job to take treatment, or if your place of employment cannot give you an indefinite leave of absence. The critical illness insurance pay-out comes as a huge relief for those seeking treatment for the illness and who may be left without an active income to fall back on. It can help you seek treatment and also keep the household running as before.

#2 To start treatment without delay.

Often, the high costs of healthcare in India deter people from seeking treatment. Most people are hesitant about going to get tested for their health problems because they fear an unpleasant prognosis that will cost them a lot of money to treat. This is a valid concern if one does not have a critical illness insurance policy in their hands. If you do, then you don’t need to delay treatment or wait to gather funds for it – the insurance plan pays a lump sum amount upon diagnosis of the illness. You need to show the insurance provider the diagnostic reports and accompanying doctor’s certificate(s) to prove the diagnosis of the illness, and the insurer pays a lump sum amount upon confirming the same. Thus, the sum insured is paid to you at once so you can start on life-saving treatment without delay – this is essential to increase treatment efficacy and boost outcomes.

#3 Tax benefits and peace of mind.

The critical illness insurance plan may never be put into use, but the fact that you have a safety net in place in case you need it, offers a huge sense of relief. None of us can foretell what the future will bring, but it helps to be financially prepared for the unthinkable. Having this insurance plan in your hands can help you rest easy knowing that you have done everything to secure your future financial and physical health from a critical illness. Meanwhile, the policy helps save your money by offering tax benefits under Sec 80D – the pay-out is completely tax-free as per the Income Tax Act, 1961.

Have you purchase a critical illness policy yet? How did you buy it, and what are its benefits? Tell us in the comments below.