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Should You Buy Critical Illness Insurance Along with Regular Health Insurance?

With over 83,000 active Coronavirus (COVID-19) cases in India, according to the recent statistics shared by the Ministry of Health and Family Welfare, Government of India, the virus is rapidly spreading from one region to another. It is time you start thinking about treatment plans, along with precautionary measures to keep the virus at bay.

Start with buying a health insurance plan that includes cover for critical illnesses. If you have this rider, your insurer will pay out a lump sum in case you are diagnosed with any critical illness included in the policy.

Is the critical illness rider necessary?

The cover is available as a rider with most mediclaim policies. However, many policyholders are still not sure if it is necessary. The truth is that there is strict no rule about buying a critical illness rider, but it is always better to have one as a safety net.

Critical illnesses can hamper your finances considerably—not only can they lead to unexpected and high treatment costs but they can also lead to hospitalization, affecting your livelihood or income. The benefits from the cover will help tackle both these potential issues.

How much to spend on critical illness rider

When buying health insurance plans, the most common doubt is always about the amount of coverage necessary. The same uncertainty extends to the critical illness insurance rider.

You need to consider certain things before deciding how much to spend on such a cover. You should certainly consider your income and how much you are able to pay as premium. Also, remember that the policyholder benefits from the rider only once he or she is diagnosed with a critical illness. Moreover, you need to ensure that the amount is sufficient to help maintain your lifestyle for a while. If you are responsible for your family’s financial needs, the cover should be at least INR 10 lakh.

Benefits of critical illness over regular health insurance

Since the chances of being diagnosed with a serious disease are higher among older policyholders, it becomes even more necessary to procure a critical illness rider along with senior citizen health insurance.

The rider has many other benefits, like:

  • The advantage of a lump sum; you can treat it as an income replacement when you are not able to work
  • Tax-free benefits under Section 80D of the Income Tax Act, 1961
  • The cover grants you peace of mind and significantly lower your worries and stress
  • Most insurers offer the payout even if you decide to go abroad for the treatment

An important point to remember is that you should consider buying health cover with the critical illness rider even if you have a cancer insurance policy; this will prove beneficial if you are diagnosed with other serious diseases like heart ailments or kidney failure.

In the same context, you should also consider opting for a personal accidental insurance cover to adequately protect yourself against all kinds of medical emergencies.

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