Is Buying A Critical Illness Insurance Plan Worth Your Money?

A common illness, such as a cold or a stomach-ache, affects virtually everyone at some point in their lives. These small sicknesses could disrupt your routine and affect various aspects of your life. It could force you to take a break from work. Thankfully, it tends to last no more than a couple of days, and you should get back in the game quite soon.

However, the same cannot be said about critical illnesses. Conditions such as cancer, lung diseases, or cardiovascular ailments can end up disrupting your life, and that of your loved ones, for a much longer duration. When diagnosed, you may also need to take a longer break from work. You may need to pay several hefty healthcare bills, which may end up affecting your finances.

While it may be ideal to never have to face such a situation, such instances do not come in your life with a warning. They may not be entirely avoidable, but you can stay prepared to face any such possibilities, with an insurance plan. To protect yourself against the financial burden of a serious ailment, a critical illness insurance plan is usually suggested. Is it worth it? Let’s find out.

What Does Critical Illness Insurance Cover?

A critical illness insurance plan usually covers about 36 critical health situations that one may face in the future. The term ‘critical illness’ refers to serious health conditions that require immediate medical attention and subsequent treatment. The number and types of ailments covered as a critical illness may depend on what the insurance provider has to offer.

Following are some of the common conditions covered within a critical illness insurance policy:

  • Cancer
  • Kidney failure
  • Stroke
  • Cardiovascular conditions (heart attack, valve replacement, etc.)
  • Major organ transplant
  • Multiple sclerosis
  • Liver failure
  • Blindness
  • Deafness
  • Loss of speech
  • Parkinson’s disease
  • Alzheimer’s disease
  • Third-degree burns
  • Coma
  • Brain surgery
  • Poliomyelitis
  • Bacterial meningitis
  • AIDS

Before you buy the policy, ensure that you understand the diseases covered by the plan, so you may choose wisely.

How do critical illness plans work? Suppose the person insured by the policy is diagnosed with any of the critical illnesses covered by the plan, while the plan is in force. In such cases, depending on the ailment and its severity, the policyholder can expect a lump sum pay-out from the plan.

This benefit amount depends on the plan sum assured rather than the cost of your treatment. In other words, your critical illness insurance cover can offer protection against any financial requirements that may arise after a serious ailment diagnosis. A critical illness insurance calculator may help you understand how much sum assured can your premium amount afford you. So, in addition to your healthcare, you may also be able to cover any other financial gaps that may have arisen.

Why Should You Buy A Critical Illness Insurance Plan?

Obstacles such as a critical illness disrupting the smooth journey of life is probably the opposite of the future one hopes for. Such shocks can upset anyone. Thus, staying prepared is key.

Critical illness insurance is one of the most effective tools you may have in your arsenal when considering the possibility of a health emergency. Having such a policy can help you focus on your treatment and recovery, instead of having to worry about the financial obligations that come along with it.

Such a policy is especially advisable if you are predisposed to any serious health conditions, or live with risk factors that make you vulnerable. Since most such policies do not cover any pre-existing conditions, it is crucial that your policy purchase is made as early as possible. You can start with a critical illness insurance premium calculator to know how much you may have to pay now to get a cover with your desired sum assured and duration.

Critical illness insurance, like most other insurance plans, is a precautionary step against a future you don’t want to imagine. With a smaller premium today, you can get the security of a lump sum critical illness benefit in the future, if such a need were to arise.