Critical Illness Insurance: Why Should You Buy It

Critical Illness Insurance: Why Should You Buy It

The stressful lives we lead today, combined with bad eating habits, lifestyle habits, and pollution have all made us prone to serious diseases like cancer. By 2025, over 1.5 million people are expected to suffer from cancer; a 12% increase from 1.39 million in 2020, says a report by ICMR published in Hindustan Times. Moreover, Covid-19 presents an increased risk for patients with such co-morbidities.

With the spike in such diseases, equally concerning is the huge figures of treatment costs. Huge costs can drain all your savings through the years. Moreover, lack of funds often leads to late diagnosis and improper treatments, to fight the disease. This is what makes critical illness insurance plans so important in the current context.

Who Should Have a Critical Illness Insurance Policy?

Insurers in 2015 claimed that 1 in 5 claims of critical care insurance plans are made by people between 36 and 45 years of age, according to an article in the Economic Times. This means that the disease can lead to loss of income for a household. If you are a breadwinner with dependents to look after, this could be the right solution for you. Critical Illness policies don’t just cover cancer, but many other diseases like renal failure, tumour, heart ailments, and more. If you have a family history of these conditions, you have more reasons to opt for a plan.

Here are some aspects to consider before choosing the right plan:

FeaturesDetails
Insured SumMultiple sum insured options to cover your life plans comfortably
Number of Diseases8-36 depending on the plan
Income OptionsMonthly income benefit option or not
Premium AmountAffordable options
SimplicityEasy online enrolment and pay-out process
Waiting PeriodDepends on the severity of the illness

Use a critical illness premium calculator to understand how the plan will impact your monthly budget. Your critical insurance policy needs to be in line with your future investment goals like child’s wedding or education expenses, retirement planning, and more.

Benefits of Critical Insurance Policy

If you are still not convinced about a plan like this, take a look at the range of benefits it can offer you.

  • Lump-Sum Pay-out– Based on the diagnosis of the stage of your disease; you can obtain a suitable lump-sum payment (a percentage of your assured sum).
  • Premium Waiver Benefit– You can receive a waiver of all future premiums due and payable, on the confirmed diagnosis of the insured person.
  • Tax Benefits– Insurance holders can avail of tax benefits under section 80D of the IT Act 1961.
  • Diagnosis is enough to Receive Benefits– Hospitalization is not a criterion to receive pay-outs. Diagnosis of the covered disease is sufficient.
  • No Medical Examination Necessary– You can purchase a policy without the need to undergo any medical exam.
  • Monthly Income– You can choose the monthly income benefit option to compensate for the loss of income.

While no one can predict the future, it is best to always be financially prepared for any eventuality an use the Critical illness calculator to know your insurance premium. Critical illness insurance plans can help you achieve peace of mind that a disease won’t become a financial burden for your entire family. 

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