While buying a health plan, most people often give Critical Illness cover a hard miss. The obvious choice for everyone is usually a simple and effective term plan. But the increase in critical health risks in the population is a growing concern for India. More so, illnesses such as cancer, cardiac ailments, stroke, renal failure and many more are cropping up at an early age.
Apart from the strain on your health, such acute illnesses lead to loss of income, change in lifestyle and a debilitating bank balance. The financial burden of medical treatments and hospitalization charges are severe enough to warrant another cover. This is where your critical illness cover comes into play.
What is critical illness cover?
Critical Illness cover is a health plan meant to provide financial protection against life-threatening critical diseases, such as cancer, paralysis, heart attack, loss of speech, and many more.. This cover can be your standalone policy or as part of your existing insurance policy. Treating such illnesses requires deep pockets, and a lot of grit. While you may have the latter, with the former you will need help. A critical illness cover is just the help you need. Let’s have a look at the multiple benefits of this cover:
- Lump sum pay-out: With Critical illness cover, you get a lump sum amount when you’re diagnosed with any serious illness that is covered by insurance policies. This lump sum amount can be used to pay for heavy hospitalization bills and medical expenses that are extremely high for major illnesses. Even after the treatment, you have frequent hospital visits, check-ups and medical tests to ensure complete recovery. The lump sum amount helps you pay for these bills without burning a hole in your pockets.
- Replacement income: If you are diagnosed with a critical illness, chances are you will likely skip work to seek treatment. In the event of a loss of your income, your family will suffer financially. However, the lump sum pay-out you receive acts as a replacement income and acts as a barrier against financial ruin.
- Tax benefits: As per Section 80D of the Income Tax Act, the premium paid towards critical illness cover is tax-free and can be deducted from your payments.
When the going gets tough, the last thing you want to worry about is the lack of resources. Critical illness cover ensures your and your family’s needs are catered to, as you recover with complete peace of mind.