4 Key Reasons You Need to Invest in a Critical Illness Insurance Policy

A critical disease can have a debilitating impact on a patient’s life as well as on that of their family members because these diseases often translate into substantial medical expenditures that can eat away into their savings. Heart attacks, cancer, stroke, etc., are labelled as critical illnesses. 

When you are diagnosed with one of these ailments, you require ongoing treatment and intensive care that can put an immense amount of pressure on your finances. That is the reason you need the protection of a critical illness policy. 

When you are protected by its comprehensive cover, you can be rest assured that your finances will be taken care of while you focus all your energy on recovering from your illness. 

This policy is often recommended for those who do not want to leave anything to chance, especially their well-being. It becomes all the more important if you are the sole breadwinner of the family and have a medical history of health conditions. 

These plans are also a great source of help for those who do not have a substantial savings account that can help them sail through, should the situation arise. Let us talk about the benefits of critical illness insurance to help you understand why you need to add it to your financial portfolio. 

Benefits of Critical Illness Insurance

Critical illness insurance provides you with comprehensive coverage that protects you against the treatment costs of serious ailments mentioned in your policy document. Not protecting yourself with the critical illness policy can expose you to the risks of paying for the treatment from your own pocket. 

However, by taking this insurance, you will become eligible to receive a lumpsum amount when you are diagnosed with one of these critical ailments. This amount will allow you to cover all the costs associated with your treatment. But with so many insurance providers offering this insurance, it is important to compare all the features and benefits before investing. 

Reasons to Invest in Critical Illness Insurance

If you are still wondering why you need to add a critical illness policy to your financial portfolio, here are some benefits that will help you make an informed decision. 

• Income Replacement

If you suffer from a stroke or cancer, your ailment will prevent you from getting back to work and earning your income. Under this circumstance, it would be impossible for you to earn a living that is required to run your household smoothly. This can be especially challenging if you are the sole earning member of your family. 

But in the presence of a substantial critical illness policy cover, you will not only be able to pay for your treatment but also pay for your daily expenses comfortably. This is an excellent plan for such individuals and a good enough reason to consider investing in critical illness insurance. 

• Tax Benefits

Another benefit of investing in a critical illness policy is availing of tax benefits. You can not only enjoy tax deduction on the premiums paid towards your insurance, but also get a tax-free sum assured if you are diagnosed with a critical illness. Thus, you are free to use 100% of your sum assured benefit in whichever way you want. 

• Freedom To Use The Money As You Want

Health insurance plans can be restrictive in the sense that the claim money will only be disbursed if you undergo hospitalization. But with a critical illness policy, there is no such restriction. You can use it the way you want. 

Apart from paying for your expensive treatment, consultation, lab tests, etc., you can also use the money to pay for your household expenses in the absence of your regular income. The insurance provider exercises no control over the way you choose to spend the sum assured. 

• Peace Of Mind

When you are diagnosed with a life-threatening disease, it can be emotionally distressing. Add to it the worry of paying for the treatment that can aggravate your symptoms. It can take your mind off recovery and cause anxiety over gathering funds to pay the hospital bills. But you can completely avoid this hassle by investing in a critical illness policy that will take this worry off your hands. 

Importance Of Critical Illness Policy

Many people falsely believe that a life insurance policy is enough to cover them from risks that arise out of life’s uncertainties. However, it only provides that benefit upon your death. Health insurance, on the other hand, will only cover expenses upon hospitalization. 

But when you are covered under a critical illness policy, your insurance provider will pay you the sum assured when you are diagnosed with one of the illnesses mentioned in your insurance document. You can use this amount freely for whatever purpose, be it treatment or pay for household expenditures while you are recovering from your illness. 

Therefore, a critical illness cover will ensure that you no longer have to worry about the treatment costs and easily afford quality healthcare without digging into your savings. It gives you the opportunity to not only survive your illness but also resume your day-to-day life without wrecking your finances. 

Experts insurance providers recommend investors to get a critical illness policy to protect themselves financially against life-threatening ailments. Just be sure to read the entire policy document thoroughly to understand it before choosing an insurance plan and a provider.