In today’s world, living a healthy lifestyle is considered a blessing. However, it is always a prudent option to carry appropriate insurance to assist your family with financial matters if you are diagnosed with a life-threatening sickness. This is where a health insurance policy with a critical illness benefit can help.
A critical illness benefit on a health insurance policy gives a lump sum amount if you (the policyholder) are diagnosed with a life-threatening illness. The benefit obtained is a predetermined proportion of your sum assured and can be used to cover expenses related to the patient’s treatment. Let’s go over the key benefits of insurance coverage in depth.
What is Critical Illness Insurance?
A critical illness health insurance policy is a benefit-based policy that pays out if you are diagnosed with one of the critical illnesses stated in the policy document. If you have critical illness insurance coverage and are diagnosed with a critical illness, the policy will pay you a lump payment after the waiting period is over. It is not required to use the lump sum payment exclusively for medical bills. You can use it to pay off bills, buy groceries, fund a child’s education, or seek treatment abroad, among other things. Cancer, stroke, paralysis, renal failure, heart attack, and heart failure are all common ailments covered by a critical illness insurance plan.
Features of a Critical Illness Insurance Policy
- Comprehensive coverage
If a person is diagnosed with a life-threatening ailment, he or she can take advantage of the benefits given by health insurance, such as pre and post-hospitalization coverage, dialysis coverage, organ donor coverage, and so on.
- Lump sum amount
There are critical sickness plans that allow you to choose a large sum insured, providing full coverage in the event of a life-threatening ailment or expensive treatment. The insurer pays a one-time lump sum payment at the time of the claim.
- Affordable premium
The critical illness coverage is comprehensive in nature, but the price for this insurance policy is inexpensive and assists the client in avoiding financial hardship during health situations.
- Monthly income replacement
If you are diagnosed with a critical disease, remember that you can claim a portion of the sum promised to replace your monthly wage. This is a big benefit during a financial crisis or if there is a lack of regular income owing to illness or inability to work.
- Tax benefits
Along with the core term insurance tax advantages, critical illness insurance offers extra tax advantages. So, if you have term insurance with critical illness coverage, you can claim tax deductions under Sections 80C and 80D of the Income Tax Act of 1961. The total amount that can be claimed for tax deductions is 1.5 lakh and 25,000 for each section, respectively.
- Hassle-free process
Obtaining a critical health insurance policy is a simple process that requires only a few documents. The company settles the bill directly with the hospital, making the process simple for the policyholder.
- Quality medical treatment
A critical illness insurance policy covers you for quality care at network hospitals. It comes in handy when you’re running out of time.
- Lifetime renewability benefit
The majority of critical illness insurance plans allow you to renew for the remainder of your life. This means you can keep your critical illness health insurance policy until you die as long as you pay your premiums on time.
Health insurance with critical illness benefits might be a viable alternative for those searching for a financial benefit in addition to a health insurance plan to cover medical expenses incurred in treating critical health problems. You can also take advantage of advantages such as wide coverage, a simple claim process, low premiums, rider perks, and more.
So don’t put it off. Get a health insurance policy today to protect your family’s financial future!
Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.