All You Need to Know about Critical Illness Policy
PNB MetLife 18-09-2015 06:31:38 AM
What is a Critical Illness?
While planning our future, we often think of buying a house, saving for our children’s education and perhaps an early retirement. However, in order to not jeopardise all these goals, we need to consider eventualities, such as critical illnesses.
A critical illness is usually an incapacitating illness which is considered to be life threatening or life altering. For instance, if an individual develops cancer or suffers a paralytic shock, he/she might be subject to a vast medical bill and various other costs. If there is a critical illness policy in place, the affected person has some measure of financial security at the time of the illness.
Critical Illness v/s Life Insurance
A critical illness insurance policy is different from a health insurance plan. When an insurance company provides a critical insurance policy to an individual, it is provided with the entire sum insured in case the insured should develop a critical illness. This means that he/she may use the entire sum as one sees fit, which could mean seeking out medical treatment, paying off debts or safeguarding the financial future of one’s families.
Critical Illness Policy vs. Health Insurance Plan?
A standard medical insurance policy or health insurance plan will only cover any medical expenses you may incur. This also means that there is a limit or cap on what can and cannot be done with the money received. A critical illness policy on the other hand assures you a certain per-decided amount of money upon diagnosis, which can be utilised in any way.
While health insurance is critical to manage hospitalization and medical costs, a critical illness policy can further aid your medical insurance plan, as it helps you pay for more expensive treatments, which are not covered under a normal health insurance plan.
Why consider a Critical Illness Policy?
There are two major reasons why one should consider a critical illness policy. Firstly, a critical illness, such as cancer, can happen to anyone at any time. Secondly, most people plan and save money for different reasons, a house, retirement or education of their children, not including the eventuality of a critical illness.
The critical illness policy serves as a security blanket in insurance, as it is designed solely to manage all kinds of financial burdens. This eases the burden on the individual and still helps secure his/her future and that of his/her family as well.