- 18 JUN 2018
Fighting critical illnesses financially? Yes, it is possible!
Health expenses have increased drastically. A basic health insurance policy that pays hospitalization bills is a must-have. Let’s assume you have sufficient individual health insurance cover of at least Rs.5 lakh , your hospitalization will be taken care of.
But do you think it will be sufficient to provide cover against critical illnesses like cancer, heart disease, chronic kidney disorder, etc? An average cost of treatment for cancer is Rs 20 lakh, cost for an organ transplant like kidney is anywhere between 5 lakh – 15 lakh. So will a medical or a health insurance providing a cover Rs 5 lakh be enough?
Also, what about incidental expenses? A critical illness eats away all your lifetime savings. You will be forced to dip into your investments or slip into debt. It also impairs your ability to earn.
God Forbid, if you are diagnosed with a critical illness like cancer, then cost of the entire treatment goes as high as Rs 10 lakh. Imagine what would your family members go through? Would arranging that amount be easy? What if you are the sole bread winner in your family? How will they manage?
Sedentary lifestyle, haphazard environmental conditions have made it difficult to prevent yourself from critical illnesses. However, you can at least be prepared against the financial crises of a critical illness.
What is a critical illness plan?
Critical illnesses are life threatening diseases like Cancer, Kidney failure, Major Organ Transplantation, Paralysis, Coma, etc. A critical Illness plan is an insurance policy where the policy holder gets a lumpsum amount on the diagnosis of any prelisted critical illnesses.
How can it help you fight critical illnesses financially?
A critical illness plan provides higher cover at lower premium rates. This is because unlike health insurance it doesn’t cover minor ailments or injuries, it covers major critical illnesses of which the cost of treatment is extremely high and the chances of reoccurrence is comparatively lower than minor ailments. Also, critical illness insurance doesn’t only cover the cost of hospitalization but is a complete income replacement plan. It provides you the lumpsum amount on diagnosis itself and you may not necessarily have to wait to get hospitalized, this amount can be used by you to pay your medical bills, other outstanding EMIs, household expenses, utility bills, etc.
The duration taken to recover from a critical illness can be extremely long or forever. During this phase, you may not be in a condition to earn and provide for yourself and family members. In this scenario, if you are the bread winner of the family, have you ever imagined who will manage such expenses? Your family may need to exhaust your savings for your treatment cost. How will they manage their recurring expenses? They may become financially handicapped and may need to borrow money from some organization or a relative. While everyone including you will be going through an emotional torment of dealing with a critical illness this financial crisis will add up and make things worse.
Let’s understand the benefits of opting for a critical illness plan. Assume ‘A’ is diagnosed by a critical illness like cancer and he has to undergo a treatment for another 10 – 12 months.
When ‘A’ has only health insurance
When ‘A’ has both health & critical illness insurance
Rs 20 lacs
Rs 20 lacs
Rs 5 lacs
Rs 50 lacs
Savings exhausted by ‘A’ for treatment
Rs 10 lacs
Additional cover that can be for household expenses, loan, utility bills, etc.
Rs 30 lakh ( Total cover – Treatment cost)
The above table clearly depicts that complementing your health insurance with a critical illness plan is a smarter way for you to ensure that you and your dependents are not financially impacted by a critical illness. Your savings will not be exhausted, you receive a lumpsum amount which can be used for all your reoccurring expenses and advanced treatment. With this additional coverage, you can protect yourself completely against critical illnesses at a lower premium amount.
Calculate your premium and exact coverage here: https://www.edelweisstokio.in/health-insurance-plans/criticare
- 21 FEB. 2019
Why opting for a cancer plan is critical for women
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