Did you know that there was a 300% increase in the number of cancer cases in India between the years of 2017-2018? Coupled with the rise in such critical illnesses and lifestyle illnesses is medical inflation. Getting medical treatment at quality health insurance policies hospitals can get quite expensive these days.
In such an environment, securing one’s future in terms of health and medical treatment becomes imperative. Regular health insurance policies may not be adequate to cover dangerous diseases such as heart ailments or cancer. This is where critical illness insurance comes into the picture.
How does critical illness insurance work?
Critical illness insurance works on a benefit basis, that is the policyholder receives a lump sum payout equal to the sum insured instead of getting reimbursed for individual expenses in treatment. The lumpsum payout is made on diagnosis of the critical illnesses covered under the policy after the individual crosses the stipulated survival period. The amount can be used by the policyholder to meet any expenses and financial obligations.
Now, the biggest misconception that a lot of people hold towards these kinds of health insurance policies, and critical illnesses in general, is that these are topics meant for older people. Those in their 20s or 30s often feel that they do not need to worry about these critical illnesses. But facts tell a different story as critical illnesses can strike at any age.
Why is critical illness insurance important to have at an early age?
The lifestyles of most young working professionals these days tend to be sedentary. Long working hours, stress, absence of exercise, and a lack of attention towards health and diet – these are common amongst the urban young. Even as most of them climb up the career ladder, their health suffers as a result of the above-mentioned factors. These have led to an increase in individuals showing symptoms of critical illnesses quite early. Hearing the news of 25-year olds getting heart failure is no more surprising. Scientists have repeatedly explained the link between a sedentary lifestyle and several life-threatening diseases. And, if one is not financially strong enough to cover the cost that the treatment for these diseases can incur, there are bound to be a lot of difficulties. This is why purchasing critical illness insurance as early as you can is important.
Let’s take a look at some benefits of purchasing critical illness insurance early.
- Lower premiums
Health insurance companies usually charge a lower premium for younger policyholders as compared to older policyholders. By paying small amounts every policy term, you can secure your future against heavy medical costs.
- Acts as savings
Most individuals in their late 20s or early 30s are saving to settle down. Most of the financial planning and funds are geared towards buying a house, getting a car, settling down with a family, ensuring children’s future, and so on. If a critical illness were to strike during such a period, these funds may be at risk. And along with that, your plans for the future can be at risk of never happening. Here, the lumpsum payout from a critical illness insurance plan can be your saviour. Besides helping you pay for the treatment, the payout can also act as an income replacement and make sure that finances run smoothly while you recover.
- Tax benefits
The premiums you pay towards your critical illness insurance policy can come back to you in the form of tax benefits.
Critical illnesses are often hereditary
Many critical illnesses can be the result of genetic factors as well. That is why some people often develop diseases like cancer, strokes, kidney failures, and so on even if they do not smoke and maintain a healthy lifestyle. Having a family history of critical illnesses makes one vulnerable to such diseases at a younger age than usual.
While you do not have a hold on your genetics and family history, you do have control over how you can deal with these illnesses even when they occur early. Having health insurance policies can help you cover hospitalization expenses and a critical illness insurance plan can go beyond that as temporary income replacement.
Do bear in mind that the features of health insurance policies and critical illness insurance plans differ as per the insurer. Do seek the advice of a professional before selecting a plan for coverage.
