In today’s world, critical illnesses such as cancer, heart disease, and renal disease are on the rise, affecting more lives than ever before.

While health insurance plays a crucial role in covering medical expenses, it might not be enough to safeguard you against the financial burdens that come with severe health conditions.

This is where Critical Illness Insurance steps in.

Our blog will explore the essentials of Critical Illness Insurance, how it differs from standard health insurance, and why it could be a valuable addition to your financial planning.

Whether you’re looking to protect your savings or ensure peace of mind for your family, understanding these differences can make all the difference.

What Are Critical Illnesses?

Critical illnesses are severe health conditions that pose significant risks to the body and can be very costly to treat. These include:

• Cancer
• Coronary artery bypass surgery
• First heart attack (myocardial infarction)
• Kidney failure
• Major organ transplant
• Stroke
• Aorta graft surgery
• Primary pulmonary arterial hypertension
• Multiple sclerosis with persisting symptoms
• Permanent paralysis of limbs, etc

Treating these illnesses can cost anywhere from ₹5 lakhs to ₹50 lakhs.

For example, cancer treatment costs can be substantial, with immunotherapy ranging from ₹30 lakhs to ₹50 lakhs and chemotherapy from ₹20 lakhs to ₹50 lakhs.

Additionally, these illnesses may lead to a permanent loss of employment.

What Is Critical Illness Cover?

Upon the diagnosis of any critical illness specified in your policy, the policyholder is entitled to receive a lump sum payment of the insured amount.

This payout can be used to cover medical expenses and any necessary lifestyle adjustments.

For instance, if Mr. X has a critical illness insurance policy with a coverage amount of ₹50 lakhs, specifically including cancer, and he is diagnosed with cancer years later, the insurance company will provide a lump sum payment of ₹50 lakhs to support his treatment and other related needs.

Benefits of Buying a Critical Illness Cover

Lump Sum Payout

Upon diagnosis of a covered critical illness, you receive a lump sum payout.

This financial support can help cover medical expenses, daily living costs, or any other financial needs during your recovery period.

Lifetime Renewal

Critical illness policies can be renewed for life, ensuring continuous coverage and peace of mind as you age without worrying about losing your insurance benefits.

Once claimed, the policy cannot be renewed.

Specific Illness Coverage

These policies are tailored to cover specific critical illnesses, such as cancer, heart attack, or stroke.

This targeted coverage means you can be assured of financial support when facing these severe health challenges.

Affordable Premiums

Premiums for critical illness cover are generally much lower compared to comprehensive health insurance plans.

This makes it an attractive and cost-effective option for obtaining significant financial protection against major health issues.

Health Insurance vs. Critical Illness Insurance

Health insurance provides coverage for a wide range of illnesses and ensures that your hospital bills are fully paid.

In contrast, critical illness insurance focuses on specific serious conditions and offers a lump sum payout.

One key difference between health insurance and critical illness insurance is that health insurance can be renewed for life, even after making multiple claims.

However, a critical illness cover will end once a claim has been made under the policy.

Here are some additional key distinctions between health insurance and critical illness insurance 👇

Who Should Buy Critical Illness Coverage?

In our increasingly sedentary lifestyles, critical illnesses are on the rise.

Young individuals are being diagnosed with serious health issues at an early age.

As a result, critical illness coverage is becoming essential for many people.

What Critical Illnesses Should Be Covered in Your Policy?

When it comes to insurance, covering conditions like cancer, heart disease, and renal disease is essential.

However, the broader the range of diseases covered, the higher the cost of your critical illness coverage may be.

Critical illness policies often require a pre-policy medical check-up.

This allows the insurer to accurately assess your health and life conditions.

As part of the process, you might be asked to undergo a medical examination to provide a clear picture of your overall well-being.

Conclusion

Critical illness insurance provides financial support when facing severe health conditions.

By understanding its benefits and how it differs from regular health insurance, you can make an informed decision about whether it’s right for you.

*Disclaimer – This is for information purposes only and not investment advice. Data credit to the rightful source.