Critical illness cover helps you financially when you are struck by a critical illness. It is designed to give you a lump sum amount on the diagnosis of a critical illness. This will provide you with financial assistance to facilitate your recovery. Although this product is such that each one would need this today more than ever, there are some myths surrounding it. Here, we try to dispel 4 such myths.
â€œI don’t need it. I have mediclaimâ€�
Mediclaim is only meant to cover hospitalization expenses. This means that if you are laid low by a critical illness, the mediclaim policy will only help you if you get hospitalized. Some hospitals may be able to offer you a cashless claim facility. But in case, the same is not available, you may have to pay first and then settle the claim with the insurer. This may put pressure on your savings. If you have a critical illness plan, you can claim the amount purely on the basis of the diagnosis of the illness. You would need to dip into your savings. Hence, apart from mediclaim, it helps to also have a critical illness plan.
â€œI am healthy. I won’t need it.â€�
Of course, you are. But you are never sure when tragedy might strike. An unfortunate event like a stroke or a burn injury can render a seemingly healthy person financially vulnerable. In such circumstances, you may need financial support to tide over the twin catastrophes of medical expenses and loss of income due to having to take time off from work. It’s better to buy a critical illness plan when you are healthy as the insurance premiums would be that much cheaper.
â€œI don’t have a family history of critical illnessesâ€�
Again, critical illnesses have a bad habit of cropping up when you are least expecting them. Not having a history of a critical illness in your family does not mean that you are immune to the same. Your parents also never had the lifestyle or the gadgets that you nowadays have. But you still have them, isn’t it? Times have changed and so have definitions of health standards. Also, critical illness plans also cover burn injuries which do not have anything to do with family history.
â€œCritical illness plans do not cover hospitalization expensesâ€�
Yes. Critical illness plans do not cover hospitalization costs ONLY. This is the biggest misconception that people have. The payout is received by the policyholder on the basis of the diagnosis of the critical illness. This amount can be used by the policyholder for any purpose. You can use it for out-of-pocket expense during your hospitalization like travel, accommodation for family members or pay your EMI’s or rent or utility bills. It helps you for more than hospitalization; it helps you during the recovery phase when you may have to take time off from work and are not earning.
Take out a critical illness plan like Edelweiss Tokio Life CritiCare+ after going through the types of illnesses covered in the plan. Make sure that it includes cancer, liver transplant, kidney damage needing regular dialysis, stroke and cardiac procedures.