This is a kind of insurance that was not structured by an insurance company. Critical illness insurance was invented by a South African doctor. This insurance was created in the need of patients when they were struggling with their finances while suffering from a major illness.
This insurance is structured in a way that assists by lowering the burden of money during severe illness. Critical illness insurance is also known as stroke insurance, cancer insurance, death disease insurance, or heart attack insurance. All the financial loads are handled by the insurance policies which include traveling for medical treatment, financial assistance, providing paid leaves, etc. Not all illnesses are covered by this insurance policy. It protects from financially disruptive conditions.
Functions of Critical Illness Insurance
With a serious illness, high bills come associated with it. The advancement of medical facilities has helped in the proper diagnosing of critical illnesses. This increases the success rate of saving lives of the serious patients. This health care bill can increase the financial burden on the patients. The health insurance plan can help to reduce the load on the patient and focus on the patient’s wellbeing.
In such insurance policies for critically ill patients, a benefit of lump sum money is paid to the policyholder. This benefit of money includes various diagnoses, wherein the necessary amount when claimed is paid directly to the policyholder.
When there is a condition of life-threatening disease, critical illness insurance assures financial support and focuses solely on the patient’s wellness. The policy includes various benefits which include:
- Medical expenses
- Utility bills
- Grocery bills
- Physician payment
If there is any need to travel to a hospital in severe condition, the policy helps to pay the bill of the ambulance, physician visits, and even lodging, etc.
Benefits of Critical Illness Insurance
In an emergency the policy provides additional support to the policyholder by covering medical alliances, some of the benefits of critical illness insurance are the following:
Alternate Income: In case of emergency, the focus is mainly on the physical health of the patient. Later it shifts towards the financial loads which majorly impact the patient’s family. In this situation, the insurance policy pays the necessary amount to cover the expenses related to medical as well as households.
Tax Benefits: The policies under critical illness insurance provide tax relaxation. The tax benefits of term policy helps to reduce the monitory burden of the patient’s family.
Peace of Mind: The critical insurance policy reduces problems such as arranging money for medical expenses. When the expenses are been taken care of, half the problems are sorted. This reduces the problem and takes off the patient’s family’s worry about financial issues.
Allowances for Foreign Medical Treatment: Under critical situations, patients are needed to travel abroad for advanced diagnosis and treatment. During this time, critical illness insurance act as a blessing, as it takes care of all the expenses related to the ailment of the patient.
Coverage Under Critical Illness Insurance
If someone claims of suffering from headaches, stomachaches, chest pain, etc., the policy won’t make payment, but insurance can provide financial assessment for the diagnosis of such problems. Critical illness insurance provides financial help to a variety of medical conditions. Some of the illnesses are as follows:
- Kidney failure
- Heart attack
- Organ transplant
- Alzheimer disease
- Bypass surgery
The insurance policy not only provides facilities under the critical illness policy there is a section that allows providing coverage to the family members. The policy can be enhanced just by adding rider benefits to the existing insurance policy. It will provide extended coverage to the family members like children and spouses. The portion of the policy of the rider can be repaid if the policyholder dies of something other than critical illness.
A Brief on the Functionality of Critical Illness Insurance
The plan and policies of an individual can differ from one another. The basic objective of health insurance is to compensate for all the medical expenses of an individual during critical illness. There are different types of insurance for policies with a different medical condition and can be bought by any policyholder. Some of the common rolled-out health policies include senior citizen plans, personal accidents, maternity benefits, critical illness plans, etc.
The insurance policies also act as a simple principle. If the policyholder is diagnosed with any covered critical illness, the insurer will have to pay the lump sum amount for further process. These policies not only help the hospital expenses, but they can also be used to pay EMI, school fees, household expenses, etc. The amount which is paid is very flexible and can be paid according to the policyholder’s need. The amount received from the policy act as a substitute for income. It provides medical assistance abroad such as traveling, lodging, food expenses, diagnosis, etc.
The policy needs a waiting period that is very specific for the policyholder. Critical illness insurance provides financial aid for numerous critical diseases which an individual can claim in an emergency.