Although enormous breakthroughs have been made in the medical industry, critical illness solutions necessitate significant research and rigorous testing to develop guaranteed treatments. In any such scenario, financial support is essential. It is not only for your convenience but also your family if you are the sole or major breadwinner.
Life can be unpredictable, and critical illnesses like cancer, heart attack, stroke, or kidney failure can be life-altering. Therefore, having critical illness insurance is important. It provides you with a financial safety net during such challenging times. You might ask—isn’t it also available as a rider benefit that can be added to existing insurance? Well, you figured it out right. Let us read on and learn more about this.
What is Critical Illness Cover?
When you’re diagnosed with a serious illness, a critical illness coverage scheme empowers you financially. You can avail this in the following two different ways:
1. Rider Benefit:
- The critical illness rider is an additional top-up to your current life policy. Your premium payment may increase a little to buy critical illness protection.
- The payout of the critical illness add-on is a percentage of your life insurance sum assured. For example, your life insurance is ₹10 lakhs, and the rider offers 25% critical illness coverage. If you’re diagnosed, you’ll receive a lump sum of ₹2.5 lakhs.
2. Separate Critical Illness Plan:
- This is a specifically designed plan for critical illness coverage with complete flexibility.
- You choose your desired sum assured, independent of your life insurance. This allows for more flexibility in picking the payout amount that best suits your needs.
- Critical illness insurance outlines a list of major medical problems. Upon the diagnosis of a covered illness, you receive the sum assured you opted for (e.g., ₹5 lakh or ₹10 lakh) as a lump sum.
Key Difference Between Critical Illness Coverage and Insurance
The main difference between coverage and a separate insurance plan lies in flexibility and coverage amount. Rider benefits provide you with a convenient and affordable way to add basic critical illness protection to your existing life insurance. On the other hand, the payout amount is linked to your life insurance and might not cover all critical illnesses you’d like.
Separate critical illness plans provide greater control over the coverage amount, and you can be insured for a wider range of critical illnesses. This comes at a higher premium compared to a rider benefit.
Making the Decision
So, is critical illness insurance worth the investment? Ultimately, it depends on your financial position and priorities. Here are 5 tips that you must keep in mind while finalising this decision:
- Evaluate Your Needs: Consider your financial state, whether you have dependents and your lifestyle requirements. High payouts may be necessary if you have a family to support or high living costs.
- Existing Coverage: Do you already have health or life insurance? A rider may be enough if some coverage is already in place.
- Critical Illness List: Check exactly what critical illnesses are covered under each option. Make sure the plan covers those you’re most concerned about.
- Budget: See what is better—paying an extra premium for a rider or taking a separate plan. Opt for the approach that is most suitable within your budget.
Secure Your Finances Against Critical Illness Today!
While preparing for your long and healthy future with life insurance, it’s equally important to protect yourself and your family from the financial burdens of any critical illness. Whether you add critical illness cover as a rider or purchase as a separate plan — don’t choose anyone other than reputed insurance providers like Canara HSBC Life Insurance.
They have a wide range of insurance plans offering several interesting benefits. Now that you have all the information for what is critical illness insurance and coverage, visit Canara HSBC Life Insurance’s official website and invest in one today!