You may have heard the phrase critical illness cover when buying your health insurance, but do you know what exactly it means?
A critical illness cover offers financial coverage for sudden critical illnesses, like a heart attack or cancer that requires extensive medical treatment and healthcare. When you or a family member is diagnosed with a critical illness, it could cause financial strain due to sudden need for medical treatments and healthcare expenses. You might be surprised to know that your standard health insurance plan might not cover all the financial expenses in this case. That’s where your critical illness cover comes into play.
Here are five reasons why you need to take a critical illness policy.
1.Sudden critical illnesses
You can’t really predict life-threatening illnesses, and the suddenness with which they occur is why you need to take a critical illness cover. Since your standard health insurance does not usually cover all the exorbitant expenses that can come with a critical illness, this policy is a good precaution to take. The policy covers illnesses such as cancer, heart attacks, kidney failure, organ transplant, etc. You can check out the full list of illnesses that this policy covers here.
2.To reduce healthcare expenses
One of the greatest benefits of taking a critical illness cover is that it doesn't just cover the medical treatment, but also the expenses that can be affected by the illness. Unlike your standard healthcare policies, the critical illness cover offers you the financial compensation that extends to your other expenses that can be affected when someone in your family is diagnosed with a life-threatening illness. This could be anything from rent or fees, in addition to the expensive medical treatments. That’s why this policy can really help you reduce the burden of healthcare expenses in the long run.
A perk of buying a critical illness cover is that it comes with tax benefits. The premium that is paid towards this cover makes you eligible for tax savings under Section 80D of the Income Tax Act, and you can get a tax exemption of up to Rs.25,000.
4.Benefits of buying the cover early
As you get older, the premium you will have to pay for your health insurance will increase. Similarly, the older you are when buying a critical illness cover, the more your insurance premium is going to be. That’s why it’s best to take the policy when you are young so that it can save you money as you get older.
5.Flexible Sum Insured
When you or a family member are diagnosed with a critical illness, you will be given a lump sum to cover all your financial expenses that are affected by it. This sum assured is flexible - this means you can choose the lump sum that you think will meet all your needs best.
Since a critical illness diagnosis is usually sudden, it is always a good precaution to take a critical illness cover. It can make a huge difference in giving you the confidence that you and your family are prepared and protected in the event of a unexpected diagnosis.