Six Myths About Critical Illness Insurance Debunked

A critical illness insurance is a type of health insurance that protects you from expenses incurred for treatment of critical illnesses like cancer, stroke, kidney failure etc. Lifestyle changes have led to the increased instances of many such critical illnesses and unfortunately, the treatment for such illnesses is never short term.Critical illnesses require long term medical therapy, frequent tests, hospitalisation and life-long rehabilitation. These services can lead to a significant financial burden and the one thing that can really help in this regard is a critical illness insurance.Even then, there are a lot of myths surrounding a critical illness plan, and in this article we’ll help debunk some of those myths.

Fact: One of the most common myths when it comes to critical illness insurance is that people think they might be too young to buy one. But this could not be farther from the truth. Critical illnesses can occur at all ages, young and old. Some of these illnesses also have a genetic predisposition and hence one cannot be certain that it won’t afflict them at a young age. That is why, having a critical illness plan is always a good decision, whetheryou’re young, middle aged, or older.

Fact: While it is somewhat true that the premium for a critical illness plan for older people is higher, the same cannot be said for young persons. Critical illness plan premiums are very affordable if you opt for a plan at a young age.

Fact: Finding and choosing the right critical illness plan might have been a long and arduous process before, but it is no longer so. The convenience of the internet has allowed anyone to easily browse through plans and choose one on websites of insurance providers. You can compare, calculate and tally premiums and coverage right in the comfort of your home and make your policy buying a quick

Fact: A regular health insurance policy will provide coverage for hospitalisation and treatment expenses for medical emergencies. On the other hand, a critical illness plan only covers the specific critical illnesses listed in the policy.

Fact: All critical insurance plans do not provide coverage for all critical diseases. Many critical insurance products are available with insurers and all of them have different coverage criteria. Usually, the main illnesses like cancer, stroke, heart ailments and kidney failure are covered. You need to enquire about other diseases when you choose your policy.

Fact: This is completely false. Premiums paid for critical illness insurance plans are tax deductible according to Section 80D of the Income Tax Act. This means that your total income tax will be reduced if you buy critical illness insurance.

Thus, some of the common myths surrounding critical illness insurance are just that, baseless myths. A critical illness plan is as useful as a regular health insurance and it is imperative that you protect yourself and your loved ones from hospital emergencies as well as critical illnesses that have a drastic impact on lifestyle and can change it as you know it. Not only does a critical illness plan cover your treatment expenses but also provides financial assistance for daycare treatment.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.