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In this fast-paced world, stress and chronic diseases are very commonly heard of. Life-threatening diseases like hypertension, diabetes, cancer, cardiovascular and chronic respiratory diseases, to name a few, have become responsible for the majority of the deaths occurring in India. To add to this, the global pandemic has shaken people all over the world to their core, especially those who already suffer from chronic illnesses.

One of the best ways to prepare for something unprecedented like this is by buying insurance such as a critical illness policy. However, most policyholders make the mistake of thinking that basic health insurance plans are offering them a complete cover.


In reality, the hefty treatment costs for life-threatening diseases along with other medical expenses end up being on the higher side, rendering your insurance plan unable to cover all expenses. Moreover, arranging for exorbitant funds in such stressful times will only add to your woes. It is in such times, that the need for a better cover is often felt.

A major illness means not only hefty medical bills but also financial stress on your life, and a critical illness policy is what can help you deal with this at ease.Choosing the right insurance plan is often the key to planning your finances better and securing your future.

Different Benefits That Critical Illness Insurance Can Offer

You will easily find ample benefits of a critical illness insurance plan, as it not only offers you financial support in your medical emergency but also helps you plan your savings better. It is an ideal plan to add to your existing insurance policy portfolio. Here are some of the key benefits that a critical illness policy offers:

  • Over 36 life-threatening diseases are covered in the critical illness insurance
  • Additionally, this insurance cover also offers protection against disability and accidental death benefit
  • You get the sum insured as a lump sum amount, which can be used towards treatment, medical expenses or even as an income replacement
  • Benefit of critical illness insurance policy is 100% payout when the policyholder is diagnosed with an illness covered by the plan.
  • Overall, the claim process is very convenient and hassle-free

Another major benefit of this plan is the tax benefit it offers against the premiums you pay. The Income Tax Act (1961) allows earning individuals to save tax of up to Rs. 25,000 under section 80D, and up to Rs. 50,000 in the case of senior citizens. Moreover, even if your parents are senior citizens and you are paying a premium for them, then you too can claim up to Rs. 50,000 deduction in your taxes.

How Can A Critical Illness Policy Be Instrumental In Your Financial Planning?

With the help of a critical illness policy, not only can you save yourself from paying undue and untimely medical expenses but also be ahead in your financial planning. Rising inflation has always been the woe of every taxpayer, and rightly so.

Compared to 5.03% in February 2021, the all-India General CPI inflation has already risen to 5.52% in March 2021. One of the smartest ways to stay ahead of your finances and beat inflation woes in the future is by planning in advance and buying critical illness insurance.

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This type of insurance policies can help you pay for expenses that a traditional insurance plan may not have covered. Here are some of the expenses that you can easily pay off using the lump sum you receive from a critical illness plan-

  • Paying for all the treatments that traditional medical policies do not cover.
  • Expenses incurred in logistics, i.e., transporting to the chemist, pharmacy, shuffling between treatment centres etc.
  • Expenses incurred for other critical medical services can be handled.
  • Paying day-to-day living expenses, ensuring that the critically ill focus more towards getting better and not on their piling expenses.
  • Patients who are terminally ill can use this very amount to rest by taking a vacation of their choice or anything else they would like.

An insurance plan like this ensures that you do not have to pay very high sums directly out-of-your-pocket when you need it the most. If your company is offering you a cover, then this plan seems like the go-to insurance for any citizen.

Why Should You Go For A Critical Illness Plan?

One of the biggest reasons for stress in people has always been untimely and unforeseen medical bills. An insurance policy is one of the best ways to protect yourself from hefty medical bills and wiping out your savings.

A critical illness plan can help alleviate your financial burden while offering cover against critical illnesses, which is worth consideration. Besides, you can either use the lump sum to get the required treatment or replace it for your salary in the later years; either way, this plan ensures you have money kept aside.