Health insurance is no luxury in the world dealing with the pandemic. It is one of the few necessities that cannot be overlooked. Thus, there should be no second thought on the question: should I buy health insurance or not?
Now when it comes to selecting health insurance plans, there are myriad choices. Considering the cases of critical illness like cancer, strokes, organ failure and the like are on a rise, ignoring them can not only be mentally stressful but also wipe out your hard-earned savings. So, irrespective of the type of health insurance policy you buy, opting for critical illness insurance is vital in your insurance portfolio. Moreover, if you have a family history of critical ailments, it is even more essential to protect yourself with a critical illness insurance cover.
There are various misconceptions when it comes to critical illness insurance plans. It is either due to misinterpreting the policy coverage or not making wrong assumptions about it. This article aims to bust some of these myths surrounding critical illness insurance. Continue reading to know about them:
- Critical illness policy is the same as a regular health insurance cover
The most common myth about critical illness is that it is the same as your standard health insurance policy. However, that isn’t the truth. Critical illness plans are insurance policies that tackle specific, yet limited ailments. The list of illnesses is mentioned in the policy document and must be checked when buying. In addition, the method of providing compensation also differs largely for critical illness plans. The insurance companies that otherwise pay the compensation for medical expense after the treatment in standard health insurance plans, now pay the entire sum assured as an upfront amount on diagnosis of the specified ailment. Instead of compensating for treatment, the insurance companies pay the amount on diagnosis helping you take care of all necessary treatment costs. *
- Critical illness insurance covers all known critical illnesses
When you purchase a critical illness plan, it is essential to understand the limitation of its scope. The list of illnesses that are covered by the insurance company is mentioned in the policy document and hence, it is vital you thoroughly read the fine print. Not all known critical illnesses are included. Thus, you should make sure before buying whether the illness for which such critical illness cover is purchased is included in the policy’s scope. *
- Diagnosis of a critical illness guarantees the claim amount
While it may not be so simple, every critical illness mentioned in the policy has been defined precisely by the insurance company. If the diagnosis meets the specified criteria, only then a pay-out shall be made. *
- The compensation is provided immediately on diagnosis of the critical illness
You need to read the policy document thoroughly for when the compensation shall be paid. Generally, there is a survival period of 30 days only after which the claim is paid. Here, the insured individual needs to be alive for the specified duration after the diagnosis of the illness and only then a pay-out is made. *
- No tax benefits are available for critical illness plans
The reality is far from this myth. Just like standard health insurance plans, the tax benefit is available for the premiums paid towards critical illness insurance. Thus, you need not worry about making a claim as per section 80D in your return of income for the deduction amount. You must remember that tax benefit is subject to change in tax laws. *
* Standard T&C Apply
Now that the myths are debunked, make sure to compare health insurance policies and only then buy a suitable critical illness plan. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.