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The importance of health and critical illness insurance plan

The occurrence of illnesses has grown tremendously in India. Health insurance, also known as mediclaim, has become an integral part of an individual’s insurance plan. Most of us have a mediclaim policy which provides us a specific amount as sum assured. These mediclaim policies cover many illnesses ranging from minor to major.

It’s important to understand that mediclaim covers only hospitalisation costs and not any other cost incurred by you or your family. But, what if you need an additional amount for your immediate expenses or for an advanced treatment? That’s when you’ll need a critical illness insurance plan.

Critical illness insurance plans cover certain critical illnesses which are mentioned in the policy document. 

Now, the below questions may occur in your mind:

Why should you buy a Critical illness plan? Is health insurance not sufficient? 

Assume Rahul suffered from jaundice so his entire treatment came up to Rs.30,000. Ten years later Rahul’s kidney failed and so the expense for the treatment was around Rs.15 lakhs altogether. Hospital charges for the surgery were only Rs.5,00,000 which was paid by his mediclaim policy. However the cost for regular dialysis was paid by himself.

It is important to understand that the treatment for a critical illness is more expensive. Let’s understand the major drawbacks;
  • When one is diagnosed with a critical illness, the income earning capacity is hampered
  • There could be a need to travel abroad for advance treatment, etc. 
  • Hence all this may require a lump sum amount which is provided by critical illness insurance plan.
The most prevalent illnesses in India are Coronary Artery Disease, Stroke, Cancer, Kidney failure. Heart disease is known as the number one killer followed by cancer. There are plans which only cover you against one disease like cancer. Now cancer is prevalent, but since you have thought of being protected against critical illnesses why protect yourself only against one? Why not against the most prevalent ones? Also Chronic Kidney Failure may need kidney transplant or regular dialysis; of which one is expensive and the other requires continuous prolonged treatment. Choose a plan which covers illnesses that are most common and prevalent.

There are plans which cover severe critical illnesses like Edelweiss Tokio Life – CritiCare+. It covers 17 critical illnesses and also provides a multi claim option under which the policyholder can claim up to 3 times. The premium rate is also comparatively lesser. 

What’s recommended? 

One must have both health insurance and critical illness insurance. Ensure that you choose a critical illness insurance plan with a sum assured of at least Rs 20 to 25 lakhs. Plan today so that you are financially prepared to BounceBack from a critical illness in the future.

Disclaimer: This is a sponsored post.

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