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Last Updated : Nov 17, 2016 07:32 AM IST | Source: Moneycontrol.com

Top 10 reasons why you should buy critical illness insurance?

Critical illness covers sold by insurance companies can offer you an array of benefits.


Naval Goel
PolicyX.com

We cannot control our future so insurance is the best way to be protected from any circumstance that might pop up in front of us. If it is a critical illness then it is all the more important that we prepare for the worst. An insurance cover can be of help.

Top 10 reasons to buy critical illness insurance

10# The best time is now

One thing should be always remembered that the cost of critical illness policies would never decline. The cost will only go only increasing day by day due to the increasing cost for treatment. Hence it is rightly said that purchasing the insurance now is only the best time to do it. So it is recommended that one should not hesitate in buying critical illness insurance right away without wasting any more time.

9# Receive Cash Back

Nowadays there are various critical illness plans that enable the purchaser to receive a portion of the premiums paid. This purchaser only becomes eligible to receive this cash back after some stipulated time period as mentioned in the insurance documents. This actually means that if a client does not need to make a claim and feels that the claim would not be required, they can cancel the policy and receive the repayment based on the agreed percentage of the premium paid as per the policy documents but all the while having coverage. This is highly beneficial since one can get back some percentage of the money that one has already paid.

8# Purchase while you are healthy

It should be always remembered that critical illness insurance policies could only be purchased while one is healthy. Once an illness has been diagnosed, one is not eligible to purchase the critical illness insurance policies. So it is rightly said that better late than never. If one has not purchased critical illness insurance still now, one should simply go ahead and purchase it without any more delay. Otherwise it might be too late and then one has to just sit back and repent since no more options would be available.

7# Tax benefit

Tax benefit is one of the great advantages of insurance policies. When the premium is paid for a particular policy, it saves tax. Now when a claim is made with personal critical illness coverage, the insurance company pays out a lump sum amount to the insured person. Most importantly this amount paid to the person insured is tax-free once again.

6# One less Worry

Once a critical illness insurance policy is purchased one worry from the life gets reduced. Personal critical illness plan allows the insured person to take the time that is necessary to recover without worrying even for a bit as to how the day to day expenses or the additional medical services would be covered. All this is covered by the policy, which is not the case as in the traditional health insurance policies. Actually in these critical illness plans there is no prearranged allocated amount for the payment hence all of the payout goes to the insured person.

5# Additional Coverage

One can also purchase critical illness coverage on a mortgage; however these types of plans cover only three types of critical illnesses namely cancer, heart attack and stroke. Alternatively, personal critical illness policies cover these three illnesses as well as twenty-two others that we come to hear almost daily. So it is very much recommended to go for critical illness insurance owing to its numerous benefits.

4# Not Included in Most Employers Plan

It is noticed that in most employee benefit group plans, critical illness is not always offered. In the rare cases where it is included in a group policy it is actually nowhere near the recommended coverage amount. Thus it becomes very essential to purchase a critical illness insurance plan and get the benefits out of it.

3# Best Doctors

The personal critical illness insurance coverage allows the insured person to get access to the best doctors. They are actually experts in specific areas of medicine. Once a claim is made, the patient’s file is put before a panel of best doctors to make a complete review and determine whether the diagnosis is correct and the course of treatment specified is appropriate for the diagnosis or not. This is a prime advantage that one can get if one buys a critical illness insurance policy.

2# Coverage for Children

Critical illness plans can be purchased to insure people, right from newborns and up to the age of sixty-five years. Some insurance companies allow insuring children for up to five critical illnesses where as adults can be covered for up to twenty-five critical illnesses. This shows that the range of ages covered by the policies is quite large and so it is extremely beneficial.

1# Peace of Mind

Critical illness insurance policies are underwritten at the time of application process. This means that one will come to know one is covered up front and not left to chance at the time of the claim. This proves that the policy rules are very much transparent and everything is made absolutely clear at the time of purchasing the policy. So we can be just sure that we will not have to face any kind of problem or harassment at the time of claim. So one can just sit back and relax in peace.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on Nov 17, 2016 07:32 am
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