Things to Know About Critical Illness Insurance


Critical illness has become a primary concern all over the globe today. Cancer, 

Kidney failure and strokes are the most common critical illnesses that are affecting people worldwide. Sources suggest that nearly 15 million people suffer from strokes each year. The statistics for other problems remain the same. During such times, a dire need for critical illness insurance begins to evolve. 

Most people know what this type of insurance policy is. However, many people do not know how it works, how to opt for it, and ways to get hands on some practical alternatives for the same. So, today, we will discover all of that via this blog. 

How Does the Plan Work?

When you opt for critical illness insurance, you will be left to decide what you want to do with the claim. Such a facility may be absent in a health insurance policy where you must use the cover for hospital expenses or health requirements alone. 

Critical illness insurance serves as an income replacer for the individual or family in need. Beyond covering the hefty costs associated with being critically ill, a critical illness plan will pay out the policy amount as a lump sum. This can be used not only for one’s medical costs but also for household expenses. So, you can use your critical illness insurance claim to meet your needs, treat your illness from a reputed hospital or use it for home treatment as well. It depends on you and your family completely. 

What Are Some Critical Illnesses Covered? 

There are many critical illnesses that this health insurance may cover for you. However, we are listing only some of them for your reference. You can contact your insurance company for better insight. 

  • Heart Attack 
  • Kidney failure
  • Cancer 
  • End-stage lung failure 
  • Blindness 
  • Brain surgery 
  • Deafness
  • Loss of Speech 

How much sum Insured would be sufficient?

Although there is no standard limit to how much would be sufficient, there are a few factors to consider. These factors like age, gender, income, and lifestyle will play a massive role in helping you decide the correct sum insured for yourself so that you do not have to encounter any inconvenience later. That is why when you buy this health insurance, you must make sure that you buy at least Rs,10Lakh coverage, and more for your safety. Also, please remember that people with high age groups should go for higher coverage to protect themselves better in the later stage of their life. 

What Are the Alternatives to this Insurance? 

This type of health insurance can be altered with a more specific kind of insurance as per your need. For example, people who have any disability can opt for disability insurance instead. This will help protect your family’s financial interests. Another option for a flexible spending account (FSA) is available for people who want a health savings account along with ample tax benefits.

The Bottom Line 

Critical illness insurance policy offers the unique advantage of a lump-sum pay-out. The funds can be used for whatever expenses the policyholder or their loved ones require after their insurance claim has been approved. 

Hence buying a critical illness insurance is significant. Hence we advise you to opt for it carefully to leave no room for complications later. After all, health is wealth!