Whenever a person’s health deteriorates, there is always cause for concern. You can’t do the everyday things in life because of illnesses, whether they are simple colds or more severe conditions. Furthermore, if you are studying or employed, you may be forced to miss classes or take off from your job due to such health problems. It is always a good idea to take a critical illness plan as it will offer many benefits to you.
Additionally, some illnesses (both financial and health-related) are more grievous and result in much greater damages. You need to be adequately prepared for these types of illness, known as critical illness.
Let’s dig deeper into them.
Table of Contents
What is Critical illness?
Life-threatening conditions require extensive medical treatment. Critical illnesses are characterized by life-threatening, severe health conditions. Such diseases are generally treated with long-term medical care, whether in a hospital or at home. As a result, the costs associated with critical illness treatment are generally higher than those associated with treatment for other diseases.
How Do Critical Illness Plans Work?
Typically, you receive reimbursements from your health insurance plan for expenses incurred for seeking medical attention.
If you are diagnosed with any of the critical illnesses, you can receive a lump sum payment for your treatment expenses if you have critical illness insurance.
When you are officially diagnosed with any of the critical illnesses listed by your insurance provider, you can claim the policy’s sum insured of Rs. 25 lakh as soon as it becomes due to you.
A Critical Illness Plan: Why Are They Important?
Constant increases in healthcare costs play a significant role in creating stress due to deteriorating health. You can receive additional financial support from critical illness policies when your regular medical insurance plan cannot cover your critical illness expenses.
This is why the need for quality and affordable health care in this country is legitimate.
You can partially protect your finances against liabilities caused by such diseases by purchasing quality health insurance policies. As long as you are diagnosed with certain diseases, these plans reimburse treatment costs, including hospitalization and pre- and post-hospitalization costs, as well as medicinal costs.
Is buying health insurance a good idea? Wrong!
Most pre-existing conditions are not covered by standard health insurance plans. It is crucial to realize that most standard medical insurance policies do not offer sufficient protection to cover critical illnesses, such as kidney diseases.
A medical insurance policy will not cover the costs of treatments such as cancer, heart disease, or organ transplantation, for example. It is crucial to take out critical illness insurance to protect yourself against these situations.
What Are The Benefits of Critical Illness Plans?
Knowing about the four factors below will allow you to understand why critical illness policies are beneficial for you.
1. Makes up for your income –
Consider, for example, suffering from a stroke which leaves you partially paralyzed on the left side. You would not be able to earn a living in such circumstances. It is possible, however, to use the money you obtain from a substantial critical illness policy to pay for both treatment and sustenance. Individuals who are the only breadwinners for their families can especially benefit from this. Choosing critical illness coverage with a substantial sum assured is a good choice for any individual.
2. You are not liable for tax on the insurance amount received
The fact that these policies are tax-exempt is another important benefit. According to the Income Tax Act of 1961, you will be exempt from paying taxes on what you receive from a critical illness policy if you receive the money when diagnosed. In this way, all the money goes directly to you without the government asking for a share.
3. There are no restrictions on end-use
When you file a claim, you have the freedom to use the funds however you want. So, you can use the sum for any healthcare-related needs you may have, like getting high-quality treatment in a prestigious institution. You are not restricted in how you use the sum insured by the insurance provider.
4. Mental well-being
Many people become worried about the costs of treatment when they are diagnosed with a life-threatening and complex illness. The ill are forced to struggle to raise the necessary funds instead of focusing on recovering. Your state of health will only deteriorate further as a result of this added hassle. The financial burden of critical illness insurance allows you to focus on the quality of treatment and recovery instead of being concerned about finances.
Conclusion
In the same way that other conditions are prevalent, so are critical illnesses. The importance of opting for a critical illness insurance plan should also be clear to you once you are familiar with a standard health insurance policy. You can speak to the experienced agents at Care Insurance to know the details about which critical illness plan would be most suitable for you according to your requirements.
