The last decade witnessed newer illnesses, among which many were life-threatening. These life-threatening diseases are generally classified as critical illnesses. They take a toll on the patient’s health and translate into huge financial costs for its treatment.
A health insurance cover is the safety net that helps you manage your finances where you are concerned about recovery. But at times, a standard health cover may fall short of covering such expenses, and it is prudent to purchase critical illness insurance.
Why should you add a critical illness policy to your insurance portfolio?
When clubbed with your standard health insurance policy, critical illness insurance pays a lump sum amoifcase. The insured is diagnosed with any of the mentioned illnesses per your policy’s terms. Health insurance in India is necessary as a typical treatment for acute disease ranges between Rs 1 lakh to Rs 10 lakhs. These expenses can further increase depending on their severity.
Generally, heart attack, lung diseases, cancer, paralysis, heart failure, major surgery of the aorta, repair of heart valves, open-chest CABG, end-stage lung disease, third-degree burns, end-stage liver disease, major head trauma, loss of limbs, benign brain tumor are some illnesses that are covered under a critical illness policy.
When combined with critical illness coverage, standard health insurance offers benefits of both hospitalization and other expenditures. These include the diagnosis charges as well as post-treatment costs. Standalone policies provide the advantage of cashless health insurance. Also, you can select a higher sum assured depending on your requirement. However, when combined with critical illness insurance, it has greater benefits than independently. Here are some reasons to consider buying essential illness coverage with your standard health insurance.
#1 Lump-sum payout
On selecting a critical illness policy, you will be compensated with a lump sum payout upon detection of the critical illness covered by your insurer. This amount can then be utilized as per your requirements ranging from medical expenses, additional costs, and even temporary financial support if the breadwinner is diagnosed and unable to earn. A bonus is that since you are availing of the critical illness policy, your base health insurance policy’s-cumulative bonus is retained.
#2 Tax concession
The premiums paid for health insurance plans are available as a deduction under section 80D of the Income Tax Act of 1961. Depending on your age, various limits are set for the determination, which can reach a maximum of ₹1,00,000.
#3 Coverage for medical expenses
The treatment costs are steeply increasing with an increasing number of ailments. Also, it is uncertain when an individual will be affected by critical illness. Investing in health insurance coverage and a standalone necessary ailment policy is wise to avoid paying hefty treatment costs to avoid paying high treatment costs.
#4 Increased chances of survival
To ensure you receive the right treatment without worrying about finances, purchasing a critical illness policy is advisable. Critical illness can be of severe intensity such that, at times, it can be fatal. It increases the chances of survival and ensures adequate financial assistance is available when required. To sum it up, a critical policy, when combined, has enormous benefits, as described above. Make the best use of them and stay worry-free about finances.
