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Benefits of Buying a Critical Illness Policy
Buying a Critical Illness Plan is the best option to get over the shortcomings during a financial crunch.
It acts
However, there are few who are not aware of the ramifications of not buying a Critical Illness Plan. Allow us to share a few advantages of purchasing a Critical Illness Policy.
Treatment Cost is way expensive
If you are cognizant of the current medical cost, then it would be easy to say that, “Cost of Health Care Treatment will upsurge year on year, but are you prepared to handle the situations in case of an emergency?”
As per statistics, Health Care Inflation is between 15-20%. Your current Health Insurance Plan may not be sufficient to bear the expenses in the event of a major critical disease. An Acute Illness can lead to loss of income, disability, change in lifestyle or even loss of ability to work. Sometimes even a simple treatment procedure might wipe out your savings. In certain situations, buying a Critical Illness policy will facilitate you to get away from these shortcomings.
Let us look at the estimated cost for certain major illness/diseases for the next 15
Estimated Cost for Certain Illness/Diseases:
Health Ailments |
Approximate cost in 2010 |
5yrs -2015 |
10yrs- 2020 |
20yrs- 2030 |
15% inflation |
10% inflation |
10% inflation |
||
Kidney Transplant |
Rs. 1,57,000 |
3,15,000 |
4,07,218 |
10,56,000 |
Open Heart Surgery |
Rs. 2.75,000 |
5,53,000 |
7,713,000 |
18,50,062 |
Liver Transplant |
Rs. 10,00,000 |
20,11,357 |
25,93,742 |
67,27,500 |
Chemotherapy |
Rs. 31,000 |
62,350 |
80,406 |
2,08,000 |
Dialysis |
Rs. 24,000 |
48,273 |
62,000 |
1,61,460 |
*Please Note: Above prices are indicative and may vary depending on the hospital you choose.
If we look at the above prices, it includes the cost for treatment of an Illness or Procedure. However, it does exclude the cost for hospitalization, medical bills, and post recovery expenses.
Broadly speaking, if you are insured under a health insurance policy, it will only take care of your hospitalization expenses. On the other hand, there are certain other expenses (Like – Post-treatment cost, Household expenses, Maid expenses, School fees, etc.) which you might have to pay from your pocket.
In such
Balancing Act:
The main purpose of buying a Critical Illness Plan to pay for the expenses treatment
Let us explain you with an example.
A Comprehensive Health Insurance Policy for a 25yrs old Individual with a Sum Insured of Rs. 5 Lakhs will cost around Rs. 5,500/-(One Year Cost). Whereas, a Critical Illness Plan with the same cover will cost around Rs. 1,500/- (One Year Cost). A Critical Illness Plan acts as a supplement to your current health insurance policy.
As said earlier, while an
It is advisable to buy a combination of both a Comprehensive Health Insurance Cover and a Critical Illness Plan to support your future health care needs.
Recovery time post the treatment:
Once you have undergone the treatment, the time required to recover is around 3-4 months. This is quite more than your allotted paid leaves. During the recovery, there are
- Maid Expenses
- Expensive Medical Treatment or Recuperation Aids
- Loan Repayment against property, car, personal loan, etc.
- Utility Bills
- Rent
- Household Expenses
- Child’s Education Expenses
So, when the outflow increases your manifold, your income will virtually come to a stop. The situation might be worse if you are laid-off from your work due to the illness. In any case, if you are
Having a Critical Illness might lessen your burden by keeping the cash outflow until the time
Along with the above
- Tax Benefit: Premium Paid is eligible for tax benefit under section 80C (Life Insurance) & section 80D (Health Insurance) of Income Tax Act of 1961.
- Free Health Check-up: A Critical Illness Policy offers free health checkups to assess your overall health and diagnose any illness at an early stage.
- Renewal Age: In a Life Insurance Plan most of the policies offer long-term coverage up to 75 years of age, whereas, in a Health Insurance plan the maximum age for entry is 65yrs but the renewal age is Life Long.
- Flexible Payout option for the various critical illnesses covered under the policy.
- Certain Policies come with options where the cover continues even after claiming benefits on selected critical illness.
Certain points to remember before purchasing a Critical Illness Cover:
- Read the list of the Critical Illness coverages included in the Policy Document
- Carefully read the risk coverage offered along with the terms & conditions of different insurance companies before choosing the right product.
- Analyze your lifestyle and make a note of the critical illness you might be susceptible to.
If you want to reduce your financial burden buying a Critical Illness Policy is a wise decision.