What does Critical Illness insurance cover and how much does it cost!

Celebrities such as Robert De Niro, Manisha Koirala, Yuvraj Singh, Lance Armstrong, Lisa Ray etc have all mesmerized us with their performances. However, there is something else that’s common between all of these people. Believe it or not they are all cancer survivors.

Global warming, pollution, and mounting exposure to different chemicals have increased the chances of cancer in the recent era. Apart from cancer, chances of heart related illness are also on the rise all thanks to the modern sedentary lifestyle. The hospitalization expenses or treatment costs of these illnesses is so high that your health insurance can barely cover it. That’s where Critical Illness Insurance comes into the picture.

What is a Critical Illness policy?

A Critical Illness insurance policy simply protects your financial stability against the risk of a list of critical illnesses. It provides you a lump sum amount in case you are diagnosed with any of the listed critical illnesses to facilitate the treatment expenses.

How is it different from Life insurance or Health Insurance?

Life Insurance policies provide protection against the risk of death. In other words, the claim amount goes to your nominee after your death. With regards to a Health Insurance policy, it protects you against the cost of hospitalization. The claim amount is dependent on the hospitalization expenses considering it is less than or equal to the sum insured. However, this can be a great issue in case you are diagnosed with a serious disease or illness as the treatment costs are exorbitant for these illnesses. Therefore, a Critical Illness policy offers the best solution, as you can apply for a claim the moment you are diagnosed with any of the illnesses.

What is the best feature of a Critical Illness policy?

The best part of a Critical Illness plan is the fact that you receive the entire sum insured when you are diagnosed with any of the listed Critical Illnesses. Therefore, whether you want to utilize the received lump sum amount for treatment expenses or for personal usage such as purchasing gold, shares or furniture, the choice is completely yours.

How much does it cost?

A Critical Illness plan is extremely cost-effective in comparison to a health insurance policy or a Life insurance policy. e.g. The yearly premium of a Critical Illness policy starts with Rs. 1200 only.

Final verdict

A Critical Illness policy is an extremely effective investment in today’s age, considering how rampant and common these grave illnesses have become. However, the policy cannot be a replacement for your traditional health and life insurance policy and rather should be used as an add-on to provide better protection and coverage.