Progress in the medical field has enhanced the survival rates of people diagnosed with critical illnesses such as strokes, cancer, and heart diseases. But, we also know that the recovery might come at a significant financial expense. It could be a devastating condition for anyone – especially for business owners and breadwinners of the family as they might have to pay for the treatment while ensuring their family/business also functions smoothly.
A large segment of the population believes that investing is a health insurance policy is enough to tackle all their medical expenses. However, bearing in mind, the rise in the number of life-threatening diseases these days, a simple health insurance policy is just not enough anymore. Treatment of a critical illness can add an unnecessary financial strain on your monthly expenses. At this moment of time, a dangerous illness policy comes into play.
A critical illness insurance policy acts as a financial cushion that helps in fighting the financial complications one may face while treating a critical illness. Also, it helps you to pay huge medical bills as well as daily expenses, without digging deeper into your hard-earned savings. In short, a critical illness policy supports you and ensures you do not have to borrow money from anyone in times of a medical crisis.
There’s a great chance of getting diagnosed by critical illnesses at old age. As your retirement approaches, it’s just savings and pension amount that will help you come out of the grave problem. A critical illness policy can save you from getting broke in the hours of need. Here’s a list of advantages, you will enjoy if you buy a critical illness policy at an early stage
No Depletion of Savings
Suppose, you got diagnosed by a critical illness, and you don’t have a CI policy to take care of your medical expenses. In this case, it is likely that your saving will get depleted as you will be utilizing them to meet your daily expenses while getting the critical illness treatment. These savings may be intended for your children’s marriage or education etc.
A simple delay in taking the right steps can change your entire life. For example, your daughter is graduating in the next three months, and you are supposed to send her abroad for her further studies. The savings you set aside for her studies may get used up during your recovery from the critical illness. This event can disturb your financial plans and can land you up in trouble.
Funds for Any Purpose
The best part about critical illness policy is that the claim is submitted on the basis of a simple diagnosis report of the doctor or the hospital. The claim, if approved, is not dependent on any conditions of hospitalization in listed hospitals or presentation of hospital invoices, etc. The insured can make use of the said sum in any way he deems fit. The sum amount may help you to pay your home loan EMI’s and allow you to uphold the same lifestyle that you were enjoying if you’d have received a regular monthly salary.
Tax Benefits
Every premium you pay towards the critical illness policy is tax deductible under Section 80D of the Income Tax Act.
Income/Pension Replacement
The income/pension that you used to draw could be replaced by the lump sum pay-out from a critical illness policy. This will help you with your utility bill payments, children’s marriage, EMI’s and other expenses. Critical illness insurance policy ensures that you have a financial back-up.