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Understanding the Need for Critical Illness Insurance in 2021

Most Critical illness insurance policies provide a lump sum amount for the treatment of life-threatening diseases for which the policyholder is insured, unlike health insurance that provides coverage against various expenses such as medical, pre and post-hospitalization, etc. One can also find indemnity-based critical illness policies designed to cover various medical treatment expenses for critical diseases. Most people think that having a health insurance policy is enough. 

Understanding the Need for Critical Illness Insurance in 2021

If a person is suffering from some type of critical illness, such as heart problems, stroke, cancer, etc., the treatment costs can be much higher than a normal person could afford. Here, critical illness insurance is the only thing that can save him from a huge financial burden.

Rising Burden of Critical Illnesses and Need for Medical Insurance

Cancer is known as one of the critical illnesses that result in maximum deaths globally. The cases in India are growing, and it is a shocking fact. What is more worrying is that the reasons are increasingly due to unhealthy lifestyle habits, like smoking. Additionally, critical illnesses like heart diseases and stroke also affect several young individuals due to several factors, including family history and poor lifestyle. The health risks further increase for ageing individuals. In this scenario, having a health insurance plan comes as a huge financial help during uncertainties. 

Need for Critical Illness Insurance in 2021

Thus, individuals, especially those at higher risks, must consider getting a critical illness policy. For instance, breast cancer cases among women are increasing. 

Tackling such illnesses after they occur can be challenging as the treatment is costlier today, and it becomes difficult to get a health cover. Hence, it is better to prepare oneself for any unforeseen situation by getting a customized critical illness plan early. It is affordable and provides benefits that ensure financial support for availing expensive medical treatments. Moreover, many insurers like Care Health Insurance now offer such health plans online, making your buying process much more comfortable. 

Features of critical illness insurance:

  1. Critical illness plans like the one by Care Health Insurance provides coverage against up to 32 critical illnesses. 
  1. Some health plans provide a lump sum amount for the treatment of the critical illness of the policyholder. In contrast, the critical illness cover by care is an indemnity-based policy that gives coverage for the actual expenses. 
  1. A critical illness policy will provide comprehensive medical expenses coverage for in-patient hospitalization, pre and post hospitalization, ambulance cover, etc.
  1. Additionally, the insured person receives benefits like no claim bonus for each claim-free year, annual health check-up, and OPD expenses cover.
  1. Critical illness plans cover organ donor, radiotherapy, chemotherapy for cancer treatments, and advanced medical procedures, such as robotic surgeries. 
  1. The day-care treatments that require less than 24 hours of hospitalization are also covered.
  1. Many critical illness plans also cover alternative treatments and therapies, subject to the terms and conditions. 
  1. One can receive cashless medical treatment at any network hospital empanelled with the insurance company. There is no need for paying bills upfront in this feature since the insurer will settle those expenses.  
  1. In case one opts for a non-network hospital, they can apply for a reimbursement claim by submitting the claim form and required documents. The claim process is simple and hassle-free.
  1. Tax benefits under Section 80D of the Income-tax act can be availed under a critical illness policy.

As the treatment takes longer than usual, and in some cases, can take up to months, such critical illness plans are designed to provide complete financial protection for an individual. It helps the policyholder to fight the rising medical and treatment expenses, thus securing a family’s savings. 

Exclusions in critical illness insurance:

  1. If the person is diagnosed with a critical illness in the waiting period of 90 days will not be covered
  1. Critical illnesses occurring due to the use of drugs, alcohol, etc
  1. Sexually transmitted diseases such as HIV/AIDS
  1. Hospitalization caused due to war, or nuclear weapons are not covered
  1. Accidents occurring due to adventure sports
  1. Self-inflicted injuries, such as an attempt to suicide
  1. Treatments of obesity, dental care, and cosmetic surgery are not covered.

Need for critical illness cover in 2021:

The need for critical illness cover is increasing with each passing day. In this modern era, when everybody just wants an office job and remains glued to their seats, the number of critical illnesses is rising. You will be surprised to know that most of the critical illnesses in India are occurring in persons that fall in the age group of 25-35 years. 

Due to the hectic schedule and less focus on health, lifestyle diseases, and critical illness are on the rise. The treatment of this critical illness requires a huge load of money, which most people cannot afford.

To sum up, as the types and numbers of critical illnesses are increasing, the age at which they occur is gradually decreasing. Critical illness insurance has become the need of the hour now.

Buying Critical Illness Cover: A Few Tips to Remember

Before you finalize a critical illness cover, it is necessary to check whether it is suitable for your specific health needs. Here are the points that will help you make the right decision: 

  • Sum insured: Check if the sum insured you have chosen for yourself is adequate. You can select the coverage amount after considering factors like the estimated medical expenses, the city you live in, age, etc. 
  • Premium: Not all critical illness policies are expensive. However, you must spend time to review different plans available online. You can compare the quotes using a premium calculator tool. When you pick a policy, ensure the premium is affordable for you while checking that the policy gives maximum coverage for your medical expenses. 
  • Waiting period: It is the period when you cannot get a claim for the specified medical expenses. When comparing policies, find the one with a minimum waiting period so that you do not face any delay in getting the medical coverage. 
  • Optional covers: Critical illness plans also come with optional covers that you can select based on your medical needs. Some optional covers are air ambulance cover, unlimited automatic recharge of sum insured, co-payment option, reduction in pre-existing diseases waiting period, and so on. 
  • Network hospitals: Find the nearest network hospital where you can access cashless treatment. Choose an insurance provider with a maximum number of network hospitals, which will increase the probability of finding a network hospital near you. 
  • Critical Illnesses covered: When you select a critical illness cover, check if the critical illness you are at risk of is covered in the policy. Also, if it covers cancer, you must ensure it covers all types of cancers at all stages. This way, you will better secure your health against such life-threatening conditions. 

Finally, read the policy documents and check the terms and conditions, including sub-limits, exclusion, deductible, co-payment, etc. Doing so will help you prevent all the hassles at the time of filing an insurance claim. Having a critical illness cover has become indispensable, given how the cases of such illness in the country and healthcare costs are increasing at the same time. This type of health cover is all the more necessary for individuals having financial responsibilities at home towards their family. Hence, it should become a part of your financial planning for a secure future.

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