(Medical inflation, lifestyle diseases make critical illness insurance a must: Here’s how to buy it)
When one thinks about financial protection, the first thing that comes to mind is a life insurance plan. By providing you with a life cover, it can help you to protect your family from a financial crisis in the event of your demise. While the death of the only breadwinner of the family can be a big contributor in creating a financial burden, a critical illness can also make things worse as it can dry out the finances in an unprecedented way. Since an illness comes without warning, and it would involve steep medical expenses so it’s crucial that you consider adding a critical illness cover to your life insurance plan.
Why Critical illness insurance is a must?
When a person is diagnosed with a critical illness, the medical bills start to mount up. And if the person diagnosed is the only person drawing a salary, things can get worse financially. There are many important reasons that make critical illness insurance a requisite:
High rate of medical inflation (12.5% in 2016) has made the cost of treatment go up by a significant margin. More and more Indians are forced to spend their savings on medical and hospital expenses, which leaves less for the future and paves the way for a financial crisis. Even if a person has a sufficient savings at present, rising level of medical inflation can undermine the value of that amount make it insufficient to cover the medical expenses in the future. This is why it is imperative that you have critical illness insurance which can provide you with a lump sum on diagonsis.
Due to the trend of the sedentary lifestyle in the recent years, a large number of people just above the age of 30 itself show signs of suffering from diseases such as cardiac issues, high cholesterol or diabetes. The cost of treatment for these diseases can empty the savings of a person and in the event of death negatively affect the family in maintaining a healthy standard of living. Critical illness insurance would allow you to get a lump sum after 30 days of diagnosis which you can use to cover the medical expenses. Some policies even have the option of being able to reclaim the lump sum multiple times. Edelweiss Tokio’s CritiCare+ allows you to claim the policy up to 3 times.
How to buy it?
You can compare different critical illness plans online and find the ideal one for you. Many online insurance companies like provide tailor-made critical illness insurance with can suit your lifestyle and provide you with the financial assistance you need.
It would be wise if you buy a critical illness insurance plan as early as possible since the premiums will be lesser, while it will also give confidence for facing unexpected situations.