How Critical Illness Insurance Protect Your Finances In Times of Crisis

All of us now know the importance of a good health insurance plan , because in times of medical emergencies, one can always rely on their health insurance to take care of their medical expenses. But a regular health insurance plan has a few limitations when it comes to providing a sound financial backup in times of crisis.The coverage that a health insurance plan provides is limited to the actual medical or hospital expenses that the insured person incurs. But this type of coverage may not be enough when one is diagnosed with a critical illness like cancer, kidney failure, cardiac disorders, blindness etc. All these illnesses require long term treatment and they drastically change the person’s lifestyle, even affecting the person’s professional life.Many expenses are incurred for recuperation and rehabilitation and this is not covered in a general health insurance. Therefore, a need arises to have something called a critical illness insurance, which entitles the insured person to a lump sum payout at the time of diagnosis of a critical illness.

A critical illness insurance is a type of insurance that provides financial assistance to the policyholder if they’re diagnosed with critical illnesses like cancer, cardiac diseases, brain disorders, kidney disorders, etc.A lump sum amount is paid out to the insured person immediately after the diagnosis is made. Apart from covering the treatment costs, the claimed amount can be used to pay for rehabilitation and recuperation from the illness, medicines, miscellaneous expenses due to loss of income and leave without pay, and even to pay off debts taken due to the illness.

• It provides a lump sum amount that can be used for a variety of expenses like minor hospital bills, rehabilitation expenses and other miscellaneous costs.
• A critically ill person also faces financial strain due to loss of their regular income. A critical illness insurance payout can also help in taking care of the policyholder’s daily expenses.
• A critical illness insurance makes sure that the insured person’s savings are not eroded due to the high costs of treating life-threatening diseases.

Thus, as many insurance experts say, a critical illness insurance has a huge role to play when someone is diagnosed with a critical illness. It is advisable to always go for a critical illness plan over and above your general health insurance. This makes sure that your medical expenses are covered but at the same time you have the funds for additional expenses arising due to your illness.Nowadays you have the option of choosing from a variety of different critical illness plans. Even some life insurance policies give the benefit of a critical illness rider. Family plans are also available to provide critical illness cover for the entire family. Whichever form of critical illness insurance you choose, make sure it includes most critical and life-threatening diseases so that you are well protected in times of crisis.

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.