Critical illness insurance is an often overlooked coverage that is offered by health insurance companies. This is a cover that pays out a lumpsum in the event that the policy holder develops an illness that is life threatening. This could be anything from cancer to heart disease. Critical illnesses, even if they do result in loss of life, can negatively impact the lifestyle and economic living conditions of the policy holder and his family as he will be unable to work for a long period of time due to the illness. The financial loss is something that only adds an unwanted, additional burden on the already suffering person and his family. This is why critical illness insurance is worth paying for even if you are an optimistic person. It is all about hoping for the best but preparing for the worst.
Why take critical illness insurance policy
Modern day living is beset with a wide range of stresses and lifestyle factors that have led to an alarming increase in the number of critical illnesses in the population, much more than in previous generations. Some of the common critical illnesses seen in India today are cancer, heart disease, kidney failure, strokes and resulting paralysis, etc. Some of these often require major surgery such as a coronary artery bypass surgery for heart disease or even an organ transplant for major diseases involving the heart, kidneys, etc. The rising cost of medical expenditure in India makes it inevitable that the treatment and surgeries for critical illnesses are skyrocketing as the days go by. Added to this is the fact that these illnesses often need months to recuperate, which means that if the critical illness affects the breadwinner in the family, there is a considerable loss of income which can affect other factors such as standard of living, children’s education, etc. Healing from a major illness can be quicker if there are no other stresses involved, so getting oneself covered with a critical illness insurance takes care of the financial stress of paying for one’s treatment, which itself can lead to greater peace of mind in times of great distress.
How critical illness insurance works
If the policy holder gets diagnosed with a critical illness, a payment in lumpsum is given to him within a number of days that has been specified beforehand. This is the sum assured for the critical illness rider alone. This is given to the policy holder even if he has not started treatment for the illness yet.