Should You Consider Buying a Critical Illness Health Insurance?


Sometimes, life can be unreasonably difficult. For example, when you suddenly become ill, it can be difficult to pay for medical expenses. If you develop a major illness, the anxiety doubles. It can be stressful not only for you but also for your family members. In addition, it places a financial burden on the family, which increases stress more than ever before. The worst-case scenario is you facing a medical emergency if you are the sole breadwinner for the family. In this situation, not only can they not afford the cost of treatment, but they also have to compensate for the income loss.

However, the one-stop solution for all your healthcare issues can be insurance coverage. In the specific case of critical illness, you can look into buying critical illness health insurance plans. These plans are designed for the specific purpose of dealing with the situation when someone develops a major disease. Read on to get an idea of what this coverage is and how it works:

What is a critical illness health insurance policy?

Critical illness coverage can be bought independently or as a rider on a regular health insurance plan. Either way you get the coverage, the benefit remains the same. Under this coverage, a lump sum amount of money is paid to the policyholder after diagnosis of any serious illness such as multiple sclerosis, stroke, heart attack, kidney failure, cancer. Different insurance companies cover different critical illnesses. A list of critical illnesses can be found in the policy terms of each critical illness plan.

Critical illness health insurance mainly covers major illnesses that are not normally covered under the primary health insurance plan. The amount covered will be paid to the policyholder at once upon diagnosis. For buying most critical illness insurance plans, no health checks are required until the age of around 45 years.

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Why should you buy a critical illness health insurance policy?

A critical illness insurance policy provides additional financial protection to individuals and families on the diagnosis of a critical illness. This policy provides a lump sum payment for recovery assistance, treatment related expenses, loss of income, or desired change in lifestyle. Here is a list of benefits that critical illness policy offers:

  • The payout that you receive on a critical illness diagnosis can be used for anything you wish. It can serve as an alternative source of income, can be used to pay off debt, pay for treatment, etc.
  • You can avail tax benefits on premiums paid for critical illness plans under Section 80D of the Income Tax Act, 1961. You should know that any tax benefit is subject to change in tax laws.
  • Critical illness insurance plans give you peace of mind by eliminating the stress of managing money in health emergencies.
  • The entire amount you receive on the diagnosis of a serious illness can be used for a higher quality of medical care. This means that the benefit you receive from a critical illness insurance policy is a substantial amount.
  • Critical illness plans also offer the cashless health insurance benefit for hassle-free claims

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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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