Life is beautiful but fragile. Despite all the care, we never know when our health fails. With life-threatening illnesses on the rise, such as heart attack, stroke, cancer, kidney failure, and so on, it is important to get ourselves and our loved ones adequately insured against the same. However, such critical illnesses are not manageable in the pocket and often incur huge expenses. This is where compulsory illness insurance comes into the picture.
What is critical illness insurance?
Critical Illness cover is a type of health insurance policy that offers a lump sum coverage to cover the skyrocketing medical expenses that invariably occur during acute illnesses. Not only that, it provides straightforward claims based on the diagnosis report/s. So here are the benefits of critical illness insurance you should know about:
- Covers major illnesses: As the name suggests, necessary illness insurance covers up to 36 crucial ailments. Generally, these are the illnesses that are covered, although one needs to check with the insurance company –
- Heart attack
- Cancer (up till a specified stage)
- Coma
- Kidney failure which needs regular dialysis
- Stroke
- Major organ transplant
- Bone marrow transplant
- Open heart replacement or repair of heart valves
- Open heart coronary artery bypass grafting
- ALS or Amyotrophic Lateral Sclerosis
- Aplastic Anaemia
- Loss of speech
- Liver disease (end-stage)
- Deafness
- Lung disease (end-stage)
- Major burns
- Muscular dystrophy
- Fulminant viral hepatitis
- Bacterial meningitis
- Multiple Sclerosis
- Permanent paralysis of limbs
* Standard T&C Apply
- Income replacement: Sometimes, critical illness can diminish the earning capacity, especially if the afflicted is the primary breadwinner. It can be either temporary or permanent – that is why part of the lump sum provided by the critical insurance policy can act as an income replacement. This can help with rent, bills, loan replacement, childcare, and other daily living expenses.
- Tax benefits: The premium for critical illness cover is free of tax – in fact, under Section 80D of the Income Tax Act, 1969, necessary illness insurance premium has a tax benefit up to ₹25,000 if you are below the age of 60. Not only that, for those above the age of 60, the insurance benefits are even higher and go up to ₹50,000. These benefits also extend to the lump sum payout you receive, which is entirely tax-free. However, note that tax benefits are subject to changes in tax laws.
Who needs a critical illness cover?
Everyone can benefit from a critical illness insurance policy. This is because our modern lifestyle is prone to diseases, especially acute illnesses, long term. Not only does it take away the ability to earn and lead to a financial crisis, but it can also make individuals and families dependent.
So, to prevent these financial burdens, we can enjoy the perks of cashless health insurance under this policy. Therefore, it is best to take care of our health and then have a critical illness insurance cover to keep ourselves and our loved ones safe and secure. Please note, insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.