Critical Illness Insurance Policy (CI) is a policy that helps policyholders to cover expenses related to critical and lifestyle diseases such as stroke, paralysis, live disorders and kidney failure.
Critical Illness Policy: The Gross Domestic Product (GDP) of a country depends on the health of the people living there. Due to the poor condition of the health care system and the lack of awareness among the people about health insurance, the reach of insurance to the people in India is low. Even now, around 70-75 percent of Indians pay for medical services out of their own pocket. Rakesh Goel, director, Probus Insurance Broker, says, “A life-threatening illness can destroy the financial condition of any family. Even a basic standard health insurance plan is not enough in case of critical illness.
For example, cancer is a critical illness wherein a normal health insurance plan costs much more than the sum insured. Critical Illness Insurance Policy (CI) provides insurance coverage that helps policyholders to cover expenses related to critical and lifestyle diseases such as stroke, paralysis, live disorders and kidney failure.
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How is a critical illness plan different from normal health insurance plans?
In a regular health insurance plan, the policyholder gets cover for medical care expenses. At the same time, experts say that in a critical illness insurance policy, the policyholder gets a lump sum amount, which can be used to cover the cost of treatment in case of any critical illness.
Benefits of critical illness plan
- There are many benefits of a critical illness policy. It covers medical expenses and hospitalization. Medical treatment can be very costly and if someone suffers from a serious illness then its cost can become a big burden.
- Goyal explains, “Sometimes one has to take holidays for treatment. Critical illness plan covers loss of income due to holidays. Due to critical illness, the financial burden increases not only on the policyholder but also on his family. Under the Critical Illness Plan, a lump sum amount is available, which can be used by the policyholder to cover his medical and household expenses.
- Tax benefits are also available in critical illness insurance. The payment is completely tax free under Section 80D of the Income Tax Act. However, experts say that some things should be kept in mind while buying a policy.
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Keep these things in mind while buying a policy
Treatment of critical illness usually costs a lot. Hence, experts say that it is important to cover the cost of treatment, as this is the most important objective of a critical illness insurance policy. Goyal explains, “While deciding the cover, remember that apart from the medical bills, there may be many other expenses involved. This may include the cost of various tests, hospitalization and post-treatment care.” Also, you may have to take a few days off from work for the treatment. Therefore, according to Goyal, pay attention to the loss of income and household expenses or liabilities, so that your family is not financially burdened during the treatment.
Who should choose Critical Illness Plan
Goyal says that a critical illness policy or rider can be beneficial for people who do not want to take any health risks, especially if they have a medical history. Anyone can buy a critical illness policy as we all can face the risk of serious diseases. With the increase in medical expenses, the cost of treatment of major diseases has also increased. Goyal explains, “If someone is admitted to a hospital for treatment, the cost can be even higher, especially if someone is taken to a super-specialty hospital. So choosing a critical illness policy would be a wise choice.”