subject: Rising Need For Critical Illness Plans [print this page] he critical requirement for critical illness insurance plans in India has led to an unprecedented increase in the popularity of general insurance products. They help in providing coverage for defined illnesses and diseases which can come as a turning point in the life of the policyholder.
These plans are also available in their individual stand alone capacity and provide many more benefits than simple health insurance policies. Though broadly rated as health plans, critical illness insurance India has several distinctive traits which set them apart from health insurance policy products.
Distinction between health insurance and critical illness plans
Some of the important differences between critical illness policies and health insurance plans are outlined below:
While an ordinary health insurance plan entitles reimbursement in the case of hospitalization after the diagnosis of any illness, injury or disease within the purview of the plan, critical illness plans provide coverage only for a pre specified set of critical illnesses such as heart attacks, strokes ,renal failure and so on, leaving other injuries and diseases uncovered.
The health insurance plans typically provide cashless benefit facilities and reimburse actual expenses while the latter gives access to a lump sum payment within days of the diagnosis of critical illness.
The health insurance policy continues to be alive even after the payment of the claim, while the critical illness plans generally ceases to exist once the benefit has been paid on diagnosis of a specific illness.
The importance of critical illness plans
It is indeed important to analyze and understand the necessity of finding alternative means of sustaining families in the event of illnesses such as cancer, heart attack, open heart valve replacement and repair, kidney failure, paralysis, coma, motor neuron disease, multiple sclerosis or other terminally threatening illnesses.
The rising costs of treatment of these critical illnesses can take a toll on the financial health of an individual and his family members. Apart from a loss of the regular source of income generation, such illnesses also lead to potential losses. The cost of funding the expenses connected with medical treatment can lead to bankruptcy in several cases. Under the circumstances, the lump sum payments received against the critical illness policies within 30-90 days of the diagnosis of the disease, goes a long way in taking care of the depleting monetary resources.
Benefits of undertaking insurance for critical illness
Critical illness insurance India is generally provided in accordance to the age, genetic history and health condition of an individual. Along with the accrued tax benefits under Section 80(D), these policies help policy holders and their loved ones feel more secure and relaxed in the event of critical and concerning health issues coming their way in any stage of life.
