The biggest advantage of a critical illness cover is that, one can meet the costs of treatment without exhausting years of savings
Critical illnesses like heart conditions, cancer, diabetes, stroke, paralysis require prolonged and expensive treatments. Indemnity health insurance plans, with limited sum insured, are typically insufficient to meet the expenses of such treatments. Moreover, when a critical illness strikes, it often impairs the earning ability of the patient. If the patient happens to be the chief earning member of the family, there may be serious repercussions – loss of income and drastic change in the standard of living.
To tackle the financial fallout of such critical illnesses, insurers offer special policies called critical illness policies.
Critical illness policies offer the insured a pre-stipulated payout on being diagnosed with a specified critical illness, regardless of whether the treatment has started or if the patient has been hospitalised. With the lumpsum in hand, the patient’s family can decide on the required treatment. The biggest advantage of a critical illness cover is that, one can meet the costs of treatment without exhausting years of savings. Moreover, the payout may also help the patient’s family deal with the loss of income at least on a temporary basis.
Broadly, there are two variants available in such policies. One is a standalone critical illness policy, independent of your existing health or life insurance and the other is a critical illness rider which is clubbed with the health or life cover. Riders usually offer a lower sum assured as the amount cannot exceed the cover on the base plan. Standalone policies on the other hand, can offer a sum insured of as high as Rs. 50 lakh but also command a higher premium than riders.
Besides the standard policies, there are some unique policies tailored to the needs of women. Some such covers are those for breast and ovarian cancer.
So, be it standalone, rider or tailor made, get a critical illness policy and tackle the financial implications of a serious illness with ease.
The writer is CEO, BerkshireInsurance.com
Disclaimer: Any content, views, opinions and/or responses on any of the pages of www.indiainfoline.com, expressed or submitted by the creators, contributors, sponsors or advertisers, other than the content provided by IIFL, are solely the views, opinions and responsibility of the person submitting them and do not necessarily reflect the opinions of IIFL. IIFL does not warrant the accuracy, completeness or usefulness of the information. Nothing contained in or provided through this page is intended to constitute advice or solicitation for any investment/financial products or services, neither does it constitute an offer for the purchase or sale of any financial instrument or confirmation of any transaction.
IIFL does not hold any responsibility for the consequences of any action or omission thereof based on any information related to investment/financial products or services that may be available on /through this page. Any reliance you place on such information is strictly at your own risk. We may include links to other web pages, but these links are not an endorsement of those pages, products or services. IIFL is not responsible for the content of any web site by other operators. Under no circumstances will IIFL be responsible or liable in any way for any content, including but not limited to, any errors or omissions in the content, or for any injury, death, loss or damage of any kind by any person as a result of any content communicated whether by IIFL or a third party. In no event shall IIFL be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits arising out of or in connection with the availability, use or performance of any information communicated on this page.