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5 ways critical illness insurance helps you

October 01, 2016 09:00 IST

5 ways critical illness insurance helps you

Critical illness insurance empowers you to focus on getting well without worrying about returning to work, finances and the survival of the family, says Naval Goel

Illustration: Uttam Ghosh/Rediff.com

The monetary stress that comes with deadly diseases pertaining to heart, skin and other important organs of our body is a bigger reason of death than the ailment itself. In such a scenario, there’s a lump sum amount that a patient receives if s/he suffers from a specified condition in the primary ailment policy.

Money received during such critical time is always helpful. But usually people fail to utilise it judiciously and continue to face the problem of lack of funds.

Here are 5 ways one can make the most out of the amount that they receive.

Paying for deductibles and other charges

The first and foremost area where one should spend the lump sum amount received is to pay for copayments, deductibles and other out of pocket charges like wellness care.

The prime reason behind this is that such expenses keep on increasing till the time the patient’s treatment is completed.

Uncovered charges

Secondly, the amount should be invested in paying for all the expenses that are not covered in the health insurance. Such kind of charges include travel charges, stay charges, food charges, etc., if one is advised to travel to different city for the treatment.

When such suggestions are made, one also has to bear the expenses for someone who is tagging along to take care of them.

In such a scenario, people feel burdened and also cannot compromise with the treatment. Hence, money should be spent or saved for such purposes.

Protection against loans

There are times when the person who is suffering is the one responsible to run the household. Of course, s/he could have bills, bank loans, etc., and other expenditures essential for the livelihood of the family to pay and manage.

If that’s the case, money received as per critical insurance policy can be of great help to ensure that the family does not suffer, at least financially.

If one has taken a home loan or personal loan, the installment can be paid on time so that one does not have an additional financial pressure and worry of being homeless.

When the family is secured, the ailing person gets one less reason to worry and the courage to recover.

Home renovation

When a person is suffering from disease, s/he becomes incapacitated to do her/his daily chores. As a result, some modifications are needed in the house. The amount received under critical insurance can be utilised for the renovation that is done to a home to make the day-to-day life easy for the patient.

Modifications like installation of ramp, widening the entry, and others can be taken care of without having to take extra loan.

Avoiding loss of income

Working like the usual becomes impossible when one is undergoing treatment. However, some people may have purchased disability insurance or other types of coverage to help them see through such contingencies of life. But such insurance policies are bound by multiple requirements.

For instance, a person who is undergoing chemotherapy cannot work for only few days a week. Hence, they might not get any amount from the insurer because they can work occasionally.

Such types of insurance only pertain to complete bed rest.

On the other hand, a critical insurance policy has no such limitation. It only empowers you to focus on getting well without worrying about returning to work, finances and the survival of the family.

It works as a close friend, who motivates you when you are dealing with critical illness.

So a critical illness policy is quite important especially for self-employed people who absolutely see no chance of getting paid while they are ill. It always gives you a much-needed support and relief from stress. 

Naval Goel is CEO and Founder, PolicyX.com

Naval Goel