You feel protected against any critical illnesses when you have a mediclaim or health insurance. Your thinking is right, but only partially. Why? Because you’ve not protected yourself against the loss of income that will be a consequence of you being diagnosed with a critical illness. If you are unable to continue working and fetch income for the family, your family will be financially burdened. After all, mediclaim will only cover the hospitalization costs. It will not be able to cover your home loan EMI’s, children’s school fees, out-of-pocket and travel, accommodation expenses for getting yourself treated etc. For all this , you need to get yourself covered with a critical illness plan.
What is a critical illness plan?
A critical illness plan is a life insurance policy that gives you a fixed guaranteed amount on the diagnosis of a pre-listed critical illness. The best part is that this amount is given to you just on the diagnosis of a critical illness. There are no pre-conditions about having to get yourself hospitalized for any number of days. As soon as you are diagnosed with a a critical illness, you will receive the fixed amount as a lumpsum.
How does it benefit you
A critical illness plan benefits you in the following ways:
1. To cover for your out-of-pocket expenses
Out-of-pocket expenses like travel and accommodation of your loved ones to and from the hospital is covered through a critical illness plan. The same is not covered by a mediclaim.
2. Saves you from debt
If you have a critical illness plan, you need not resort to borrowing for meeting your household expenses and financial liabilities like EMI’s etc. The critical illness plan will allow you to live life independently without riddling your self with debts.
3. If the hospitalization costs exceed your entitlement
If the hospitalization costs exceed your Sum Assured under the health insurance plan, you would have to dip into your own savings to pay for the excess amount. In such a situation, a critical illness plan will help you to generate the required funds.
4. Helps you to recover at your own pace
Since a critical illness plan allows you freedom from financial worries, you can recover peacefully and at your own pace after the procedure, if any. You do not have to rush through the recovery process.
Get a critical illness plan to prevent a medical emergency from derailing and disrupting your life financially.