Advantages of buying critical illness insurance cover

Buying a critical illness insurance policy is among the best ways to prevent a life-threatening disease from taking a toll on your financial wellbeing.  However, before addressing benefits of critical illness insurance, it's crucial to define what a critical illness plan is in the first place.

What is a Critical Illness Policy?

A critical illness policy, unlike a traditional health insurance plan, covers some of the most common critical ailments that can affect a person. The policy will occasionally cover hospitalization expenses, medical care, and outpatient care that one requires. However, critical illness cover can also trigger payout of the entire sum insured on diagnosis of the condition, which is something traditional health insurance plans do not offer. Once the lump sum payout is triggered, one’s critical illness insurance plan can’t be renewed again.

Advantages of Critical Illness Insurance Policy -

There are certain benefits that come along with critical illness plan. These are as follows:

1. Income Replacer :

The primary benefit of critical illness insurance is that it serves as an income replacer for the individual or family in need. Beyond covering the hefty costs associated with being critically ill, a critical illness plan will pay out the policy amount as a lump sum. This can be used not only for one’s medical costs but also for household expenses. One spends the money on critical expenses instead of just hospitalisation costs.

2. Tax Benefits:

Similar to traditional health insurance, a critical illness policy also offers tax benefits. As per Section 80D of the Income Tax Act, the pay-out on critical illness insurance is tax-free. 

3. Coverage Against Major Ailments: 

Major ailments that afflict the general population more than ever today are guaranteed to be covered under your policy. Not only are these debilitating illnesses dangerously commonplace, but they are also deadly, making critical illness insurance an increasing necessity each year. Ensure you carefully look at which diseases are covered by your critical illness plan. Some plans offer coverage for seven critical illnesses while others — like Niva Bupa’s CritCare Plan — go up to twenty different critical illnesses. More often than not, heart disease, stroke, epilepsy, some specified type of cancers, and disability triggered by an underlying condition are covered, among other critical ailments.

4. Hassle-Free Process:

Choosing the right health insurance provider will make the process of receiving your insurance pay-out quick and hassle-free. Ensure you choose an insurance provider that has a good claim settlement ratio like Niva Bupa. This will make the entire process smooth sailing when you require accessing your Sum Assured during a crisis. Once your claim is approved the entirety of the amount you saved is paid out at once, making it convenient for you. 

Conclusion:

When we compare health insurance plans, critical illness insurance policy offers the unique advantage of a lump-sum pay-out. The funds can be used for whatever expenses the policyholder or their loved ones require after their insurance claim has been approved.