You may wonder why you need an extra insurance policy for life-threatening diseases when you have health insurance (in most cases provided by your employer) and term life insurance.
However, given modern lifestyles and medical advances that allow us to live much longer, there is a higher likelihood of developing a long-term illness than there is of dying prematurely.
Given the risks, it makes sense to protect yourself by living a healthy lifestyle. Here are three reasons why buying a critical illness insurance plan is another step in the right direction:
It more than health insurance
What if you’re diagnosed with a critical illness that requires specialized care and your health insurance policy only covers hospitalization and doctor’s fees? It’s the cost of long-term treatment that can break your finances.
Your mediclaim plan won’t reimburse you for 15-20 lakhs worth of long-term medical costs. Also, your health plan may include riders with sub-limits on certain expenses, thereby increasing your out of pocket medical expenses.
A critical illness policy takes care of the expenses your health insurance plan won’t – from equipment and home care after hospitalization to medicines. You don’t even need hospitalization to claim the sum assured – only diagnosis is required.
Income replacement for future goals
Critical illness can also lead to total loss of income or partial disability, which will massively impact your lifestyle. The financial burden of critical illness is far greater than what a health insurance plan can protect you against.
If your earning capacity dropped after your diagnosis, you’d need to pay for top medical care, your mortgage, and maintain your standard of living and your family’s goals, such as your spouse’s retirement or child’s education.
The larger the sum assured in a critical illness plan, the better it is for you. A standalone critical illness policy provides more flexibility with more diseases covered and payout upon diagnosis.
You’ll probably need it at some point
Unfortunately, Indians are leading the way when it comes to the prevalence of so-called lifestyle diseases such as diabetes, hypertension and heart disease.
Sedentary lifestyles, poor diets and a general neglect of health in favour of long working hours are the norm in India. The country has almost 65 million diabetics – almost six times the number in 1980 – according to the medical journal The Lancet.
The fact that you may live until your 90s means you’re at a greater risk of being affected by heart disease, hypertension, diabetes, cancer or related ailments such as stroke.
Before buying any critical illness policy, review them based on the following factors:
- Number of diseases covered – The more diseases covered, the more protection for you
- Policy tenure – A longer policy tenure especially benefits working adults with dependents
- Sum assured – The larger the sum assured the greater the protection for you and your family. Leading insurers like Edelweiss Tokio Life Insurance provide up to one crore sum assured