Healthcare costs are on the rise, and critical illnesses, such as cancer, paralysis, heart disease etc., are becoming increasingly common. Treating these critical illnesses requires prolonged medical intervention or involves a high cost to get quality health care or both. Such illnesses not only affect the individual but also significantly impact his/her family’s finances. Therefore, it is important to buy critical illness insurance for family members to ensure they receive adequate financial support during times of crisis.
What is Critical Illness Insurance for a Family?
Critical illness refers to a severe and life-threatening medical condition that can have a significant impact on a patient’s health, lifestyle, and finances. Examples of critical illnesses include kidney failure, heart attack, cancer, stroke, and major organ transplant.
Critical illness insurance for the family provides financial coverage to the policyholder and his/her family against critical illnesses covered by the policy. This type of insurance pays a lump sum amount to the policyholder and the person’s family upon diagnosis, which one can use for medical expenses, loss of income, or any other expenditures that may arise due to the critical illness. It provides financial stability during a difficult time, allowing the person to focus on recovery without worrying about the economic burden of the illness.
What are the Benefits of Critical Illness Insurance for Family?
Some significant advantages of critical illness insurance for the family are listed below.
- Financial Security: Critical illness insurance provides financial security to the policyholder and the person’s family during medical emergencies resulting from such ailments. The policyholder can use the lump sum amount paid by the insurer to cover loss of income, medical expenses, or any other expenditures associated with the treatment.
- Coverage for Multiple Illnesses: Policies offering critical illness insurance provide coverage for a range of critical illnesses, such as stroke, cancer, kidney failure, and heart disease. The policyholder can choose a policy that covers the specific illnesses that he/she might have the risk of developing.
- Tax Benefits: Under the ITA or Income Tax Act, the premium you pay towards critical illness insurance becomes eligible for tax deductions.
- No Claim Bonus: If the policyholder refrains from making any claim during the policy period, he or she can receive a no-claim bonus. The insurer can offer this in the form of a higher sum insured or a reduced premium.
- Peace of Mind: Having critical illness insurance provides policyholders and their families peace of mind, knowing they will receive coverage financially in case of a critical illness.
- Quick Disbursal of Funds: Critical illness insurance pays a lump sum upfront to a policyholder, which the person can utilise for any expenses related to the illness.
How to Choose the Best Critical Illness Insurance for Family?
While choosing a critical illness cover for the family, consider the following factors:
- Coverage: Choose a policy that covers the maximum number of critical illnesses and provides comprehensive coverage.
- Sum Insured: Buy critical illness insurance that offers an adequate sum insured to cover the medical expenses and other costs for the patient’s treatment.
- Premium: Compare the premium of different policies and go for one that extends the best coverage but at a reasonable premium.
- Waiting Period: Check the policy’s waiting period; pick one with a lesser waiting period.
- Claim Settlement Ratio: Check the company’s claim settlement ratio before investing in the policy. A higher claim settlement ratio shows the company is reliable and efficient in settling claims.
- Exclusions: Carefully read the policy documents to understand the exclusions and limitations. Choose a policy that has fewer exclusions and provides comprehensive coverage.
- Network Hospitals: Check the insurance provider’s list of network hospitals. Select a policy that covers a vast network of hospitals.
How to Buy a Critical Illness Plan Online?
Follow the simple steps mentioned below to buy a critical illness plan online.
- Research: Explore different insurance companies and their critical illness policies online.
- Compare: Make a comparison in terms of the coverage, premium, waiting period, and claim settlement ratio of different policies offered by various insurers.
- Choose: Opt for a policy that provides comprehensive coverage at a reasonably priced premium.
- Fill Application: Filling out the application form with accurate details and providing all the required documents is necessary.
- Make Payment: Pay the premium online using Internet banking or your debit/credit card.
Critical illness cover for the family can provide peace of mind and financial support during a medical crisis. It is a valuable investment for those looking to safeguard their family members from unforeseen financial troubles.