Should You Get Critical Illness Insurance?
32-year old Rajesh had to be hospitalised after he suffered a heart attack. Fortunately, he had a health insurance plan in place, so the cost of hospitalisation was covered by his insurance company. Now when Rajesh got discharged from the hospital, his doctor advised him not to go back to work for a couple of months. This only added to his stress since he was the sole breadwinner in his family.
If Rajesh had bought a critical illness plan, he wouldn’t have had to worry about the finances. Critical illness insurance pays out a lump sum if the policyholder is diagnosed with any of the critical illnesses mentioned in the policy. This payout can be used for meeting the day-to-day expenses until the individual is able to resume work. A critical illness plan can be purchased either as a stand-alone policy or as a rider (health insurance with critical illness cover or life insurance with critical illness cover). It is always recommended that you buy a stand-alone policy since they will be relatively more comprehensive in terms of ailments covered and the sum insured.
Coming to the question of whether you should get a CI cover, the answer is a definite yes! You can never be certain of what the future holds, so wouldn’t you like to protect yourself from the unpleasant surprises life throws your way? With a critical illness plan, you are financially securing yourself and your loved ones when things get tough.
Here are some reasons why you should seriously consider getting a critical illness cover:
- If you are unable to work due to some serious ailment, your savings will get depleted since you will be utilizing them to meet your daily expenses. Chances are if you have set aside some funds for your child's education or marriage, you will now have to use them to meet your everyday requirements. Sometimes people even resort to taking loans just to pay their bills. A critical illness cover will protect you from all that since the policy payout will supplement the loss of income.
- Having a health insurance plan alone may not be enough. There will be limitations on the support you receive when you suffer from a serious illness. A health insurance policy will reimburse you for the expenses relating to hospitalisation. A CI plan, on the other hand, provides cover for a set of critical illnesses, and the insurance company will pay out a lump sum right away or within a few days of the diagnosis of a critical illness. The policy payout can be used anyway you like - take care of hospital bills, pay for recuperation aids, pay off pending debts, etc.
- The premium that you pay towards your critical illness plan qualifies for tax benefits under Section 80D of the Income Tax Act. Tax exemption can be claimed up to ₹25,000 under Section 80D, and if you are a senior citizen, you can claim tax benefits of up to ₹30,000.
Critical illness insurance is a good policy to have to secure yourself from the unexpected surprises that come your way. If you have a family history of any critical illness, the wise thing to do would be to spend some money to guard against that illness. See to it that you make complete disclosure while purchasing the policy.
Critical illness cover can be bought as a stand-alone policy or you can opt for it as a rider, health insurance with critical illness cover for instance. Before selecting a plan, take a careful look at the policy details. Read through the exclusions mentioned and maybe consult your family doctor on the coverage and waiting period to see if the policy will meet your requirements.