Jasmine Birtles
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Why Should You Get a Critical Illness Insurance Plan Right Now?
Moneymagpie Team
14th Nov 2024
Rising medical costs, increasing stress levels, and the unpredictability of life make securing your financial future more critical than ever. One significant aspect of health insurance that often gets overlooked is critical illness insurance. While a regular health insurance policy provides coverage for hospitalisation and treatment, it may not always be sufficient when dealing with severe and life-altering illnesses. This is where a critical illness insurance plan becomes essential.
- What is Critical Illness Insurance?
- Reasons to Get a Critical Illness Insurance Plan Right Now
- Conclusion
What is Critical Illness Insurance?
It is a type of insurance policy that provides a lump-sum payment if the insured person is diagnosed with a severe illness such as cancer, stroke, heart attack, kidney failure, or other life-threatening conditions. Unlike regular medical insurance plans, which usually cover hospitalisation and treatment costs, a critical illness plan offers a fixed payout once the diagnosis is confirmed. This payout can be used however you see fit, whether for medical expenses, lifestyle changes, or simply to maintain your financial stability during recovery.
Reasons to Get a Critical Illness Insurance Plan Right Now
Increased Incidence of Critical Illnesses
Over the past few decades, the number of critical illnesses such as cancer, heart disease, and kidney failure has surged dramatically. According to medical experts, lifestyle choices, stress, and environmental factors have led to an alarming increase in these conditions, even among younger individuals. With the unpredictability of such diseases, securing this plan early ensures you’re financially protected against these uncertainties.
Soaring Healthcare Costs
One of the main reasons to consider critical illness insurance today is the skyrocketing cost of healthcare. The treatment for severe illnesses, including chemotherapy, dialysis, surgeries, and post-operative care, can deplete your savings if you are unprepared. Even the best medical insurance plans might not cover the total costs associated with long-term treatments or rehabilitation. It bridges this gap by providing a lump-sum amount that can be used for any expenses related to your treatment or recovery.
Comprehensive Financial Protection
A critical illness does not just affect your health; it can also disrupt your financial well-being. While a health insurance policy helps cover medical expenses, it may not account for other associated costs such as home care, medical equipment, or lifestyle modifications required after diagnosis. The lump-sum payout from a critical illness plan can be used for:
- Paying off any debts or loans.
- Funding necessary home renovations (e.g., making the home wheelchair accessible).
- Covering daily expenses if you’re unable to work during recovery.
Peace of Mind for You and Your Family
The emotional and psychological toll of a critical illness diagnosis can be immense, not just for the patient but for the entire family. The last thing you or your loved ones should have to worry about during this time is the financial burden. Knowing that you have this plan provides peace of mind, allowing you to focus on recovery instead of worrying about how to afford medical treatments and everyday expenses.
Low Premiums When Purchased Early
One of the best times to invest in this insurance is when you are young and healthy. As with other forms of insurance, the premium you pay is often lower when purchased early, before any pre-existing health conditions or age-related issues come into play. Waiting too long to get covered could lead to higher premiums or, in some cases, rejection due to existing health conditions. Act now, and you can lock in a more affordable premium for comprehensive coverage.
Rider Options with Health Insurance Policies
Many insurance companies now offer critical illness riders that can be added to your existing health insurance policy. This allows you to enhance your coverage without having to purchase a separate plan. Adding a critical illness rider gives you a dual layer of protection, ensuring that you’re covered for both regular medical treatments and life-threatening diseases.
Tax Benefits
Purchasing this plan also has financial benefits in the form of tax deductions. Under Section 80D of the Income Tax Act, premiums paid for critical illness insurance are eligible for tax benefits, helping you save on taxes while ensuring robust health coverage. These savings, combined with the financial protection offered by the plan, make it a wise investment.
Conclusion
Critical illness insurance is no longer a luxury—it’s a necessity in today’s world of increasing medical risks and expenses. Whether you are looking to safeguard your savings, secure peace of mind, or enhance your current medical insurance plans, investing in this plan offers comprehensive financial protection.
When considering insurance providers, it’s crucial to choose a trusted name in the industry. Niva Bupa, known for being among the best health insurance company, offers a range of comprehensive medical and critical illness insurance plans tailored to your needs. By securing your future with the right insurance plan, you can protect yourself and your loved ones from the financial impact of critical illnesses.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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