With increasing illness and compromised lifestyles, it is becoming all the more important to keep yourself financially secure against medical emergencies. One can end up with a critical illness at any time. A critical illness can impact anyone not just physically, but also emotionally and physically.
Financial advisors have always suggested investing in critical illness insurance. A critical illness insurance policy is meant to cover serious life-threatening illnesses like cancer, transplants, renal failure, etc. This insurance provides lump sum financial support so you can pay for your treatment as per the need.
Need for Critical Illness Insurance
With the rising cost of medical treatments and poor lifestyle choices, critical illnesses are more common than ever. Additionally, more and more millennials are succumbing to such diseases, leaving their family in a financial crisis. Considering the same, critical illness insurance is not just an option, but a necessity.
While everyone should consider buying this insurance, it becomes vital for certain situations:
- Those having a family history: Many critical illnesses are genetic. For instance, the risk of being affected by cancer is higher for those who have a family history of the same. It is critical to buy Critical Illness Insurance as a proactive measure to secure your future as well as finances.
- Sole earning member of the family: If you are the only earning member, it is vital to get this insurance for your whole family. Your family does not deserve to go through financial turmoil in the event of such an illness. Besides paying for the treatment, the critical illness will also compensate for income lost during the tenure of your illness, which makes this an ideal investment.
However, as mentioned above, given that young people are equally prone to critical illnesses, it is well recommended that the sooner you buy critical illness insurance, the better.
Reasons to Buy Critical Insurance Policy at an Early Age
- Lesser premiums: The amount of premium varies with a lot of factors and the age of the policyholder is an important consideration. Buying an insurance policy at a younger age is less expensive since they are in better health and at a lower risk of contracting such diseases. As you grow older, your premiums go higher. Buying a Critical Insurance Plan is ideal to buy in your 20s and 30s and avail more coverage at lower premiums and ensure more savings.
- Covers medical bills: Treatment for critical illness of any kind is expensive and without a critical illness insurance cover, it can be a huge burden on your family. Since the coverage provides a lump sum amount at one time, lack of funds is not an issue even in case of an emergency. You do not have to file a claim every time you go for treatment or have to buy expensive medicines.
- Helps in compensating income: Getting treatment for a critical illness needs you to take frequent leaves from the office. In some cases, people might have to quit work which affects the income significantly, especially if you are the sole breadwinner of the family. Critical illness insurance besides providing funds for treatment also provides coverage for income loss in case of permanent or partial disability.
- Other expenses coverage: The lump sum amount given by the insurance provider can be used as per your needs. Besides paying for treatment, you can use it for paying the tuition fee of your children, EMIs, or other expenses if needed. This helps secure the family from financial turmoil and worries. Especially if one were to undergo critical treatment in old age, it could lead to acute financial stress, as several critical illnesses are not covered even under senior citizen health insurance.
- Lump sum payment for treatment: A critical illness is more costly than regular illnesses and hence, the insurance companies offer a lump sum one-time payment for adequate treatment and diagnosis. Often people refrain from getting the required treatment due to a lack of funds. Choosing a critical illness insurance policy helps ensure that you can afford the best treatment and procedures.
- Coverage for other related expenses: In many cases of life-threatening diseases, patients may need to travel to a different country or state to seek the required treatment. Family members may also need to accompany them. These travel expenses can get very expensive and may not be affordable, especially with the high cost of treatments. Some critical insurances also cover such miscellaneous expenses that are related to your treatment.
- Tax benefits: Critical Illness Insurance allows for tax benefits under the Income Tax Act, 1961. As per Section 80D of the Income Tax Act, one is allowed for a tax exemption up to INR 15000. Senior Citizens on the other hand can avail of the benefits of up to INR 20,000.
It is ideal to purchase critical illness insurance as soon as you can as it safeguards you against mental, emotional, and financial stress as well as takes care of expenses during treatment. These policies cover you against various life-threatening diseases including liver, heart diseases, and cancer. Having critical illness insurance in place helps you stay prepared and stress-free while you focus on getting the best possible treatment. Additionally, while you must buy this at an early age, you can also avail it for your parents along with senior citizen health insurance.
Disclaimer – The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sale.