A lot of people are confused as to why they need critical illness insurance when they are already covered with a mediclaim. Here are 5 ways in which critical illness insurance can help save your life, in the financial sense.
To pay out-of-pocket expenses on healthcare
Even if you are covered with mediclaim, you run a high chance of getting admitted for a procedure to a hospital that does not give you a cashless claim. This means that you have to pay and settle your bills with the hospital before you can make a claim. This may lead to your savings getting depleted for a certain, or rather an uncertain period. Again, even if you are covered with a cashless facility, other expenses like travel, hotel stay etc for your family members will not be covered. With critical illness insurance, you get paid a lump sum on diagnosis of a critical illness. For instance, if you are diagnosed with a heart condition which requires you to go in for a cardiac procedure using Coronary Artery Bypass Grafting(CABG), you can claim the critical illness cover on the diagnosis of the same. This will ensure that your savings don’t get depleted.
If you are the lone breadwinner in the family, a critical illness can lay you off from work as you may need some time off to recover from the same. Considering the same, it becomes imperative that you make some provisions for income replacement so that you need not go around town asking friends and relatives to bail you out with some cash funds for maintaining your life expenses.
Pay off your EMI’s
If you have a home loan going, your forced lay off from work may affect your repayment capabilities, which, in turn, will adversely impact your credit ratings. It will be a good idea to have something up your sleeve so that your home loan EMI’s are kept regular and you do not have to default on the same.
Help in a peaceful recovery
Whenever a family member is struck by a critical illness, there is severe emotional stress. This is mitigated to a certain extent when you know that you have a financial back-up. All the family members can look after you and you also can focus completely on a stress-free and speedy recovery when there is less of financial stress
Prevent further debt
If you do not have critical illness insurance like Edelweiss Tokio Life Criticare+, you will have to go in for further debt through your credit cards or by mortgaging your assets. This will further put your financial condition under undue stress. When you don’t know when you are going to be back on your feet, the last thing that you may want is for banks and other loan-givers breathing down your neck for repayment.
No matter which way you use the money, it is very clear that with critical illness insurance, you are better protected against the onset of a critical illness.