Critical illness rider is a necessity in today’s times with rising costs of healthcare. Critical Illness benefit provides coverage against specific life-threatening diseases. Treating such critical illnesses may require multiple visits to the hospital over a long period. In addition to the hospitalisation expenses, there will be other costs like fees for doctor visits, medical expenses, and more. A Critical Illness benefit pays a lump sum amount that can be used to cover these high expenses. The good thing is that this lump sum payout is in addition to any of your mediclaim or health insurance policy.
Health problems, in most cases, strike unexpectedly. In such cases, the burden of paying for treatment costs can fall on your family. There could also be a loss of income due to the illness. Most of the time, the family dips into their savings kitty built for either their child’s education or one’s own retirement to overcome these expenses. But a critical illness benefit can offer the required funds at the right time.
Why should one buy a Critical illness benefit?
A Critical Illness benefit can help you cover expenses like doctor consultation fees, the cost of medicines, and more. You can use the money from a critical illness benefit to cover ambulance costs and room rent along with pre and post-hospitalisation expenses. Besides, if you have any outstanding loans like a home loan or a car loan, the payout can help with dealing with the EMIs. The payout can also be used by your family as a substitute for your income that may be compromised due to an illness.
If you do not have a Critical Illness benefit, you may have to dip into all the hard-earned money that you have saved. The high cost of treatment can erode years of savings in just a few months. However, a critical illness benefit offers the financial support you need at the time and helps keep your other savings intact for their respective objectives.
Features of critical illness benefit
Lump sum payment option:
On the diagnosis of a critical illness, the insurance company provides a lump sum payout@ to the policyholder to cover all associated costs of the treatment
Hassle-free experience:
Thanks to the digital era, policyholders can enjoy a smooth, customer-friendly experience while purchasing or renewing their policies or making claims
Monthly income:
On being diagnosed with a critical illness, a part of the sum assured is paid out that can substitute for monthly salary<. This benefit is available under ICICI Pru Heart/Cancer Protect
(Customer need to opt for the benefit option).
Critical illness benefit coverage:
The coverage is wide and vast with 34 major critical illnesses# covered under the policy
Why should you buy a critical illness rider?
A critical illness# rider is critical nowadays. A few days of being sick can lead to exorbitant hospital bills, making it hard to maintain a favourable standard of living. With a critical illness benefit, you can rest assured that your loved ones will not struggle to meet hospital expenses, doctor’s fees, and other expenses. The payouts on the diagnosis of disease are instantly credited to you and can be used to cover varied costs.
How to choose the perfect critical illness cover?
Here are some things you should pay attention to:
Sum assured:
A high sum assured can offer you a safety net of sufficient funds in tough times. Make sure to select a high sum assured amount
Age:
Buying a critical illness rider at a young age can offer you a high sum assured with lower premiums
Critical illness covered:
The more illnesses covered, the wider is the plan’s coverage. The ICICI Prudential iProtect Smart Term Plan covers 34 critical illnesses
Renewal limit:
It may help to pick a plan that comes with a high age limit of renewal to maximise the benefits of your policy
Inclusions and exclusions:
It may be advised to check the inclusions and exclusions of your policy and understand the features, terms, and limitations of your plan
How is a critical illness benefit different from other health insurance plans?
Before you invest in health insurance, you need to remember that all costs are not covered by them. Let’s look at a couple of examples to understand the difference a bit better.
Mr. A was suffering from a health condition for which he used his health insurance plan. While his health insurance plan offered financial protection, he was required to submit hospital bills and could only cover the costs of the expenses incurred during his treatment. Auxiliary costs and the loss of income due to the illness were liabilities that Mr. A and his family had to bear on their own.
Mr. B was suffering from a similar health condition and could no longer continue with his job. However, he opted for a critical illness benefit. He received a lump sum payment. He used a portion of it to pay for his treatment, while the other part took care of his family’s expenses.