Healthcare and health insurance are as good as mandatory in today’s world, especially after living through the covid-19 pandemic. They protect the policyholder against exorbitant medical costs. A typical health plan covers hospital room rent, consultation fees, medicines, diagnostic procedures, etc. However, is basic health insurance enough?
Because of the rising complexity of our lives and the increased time we spend sitting (or surfing online), we are more susceptible to serious illnesses. Critical illnesses and disorders often have high treatment costs, and a standard health insurance plan might not automatically cover them even if it does pay some of those costs. *
Getting a critical illness insurance policy or adding a critical illness add-on to your existing health insurance policy is a good idea if you want to avoid paying these expensive expenditures out of pocket.
What Is a Top-Up In Health Insurance?
A health insurance top-up is an add-on which requires spending a small amount in addition to the insurance price and receiving big benefits in return. If you are diagnosed with certain life-threatening conditions, your financial stability will be better protected.
The five most important reasons to incorporate a critical illness add-on to your health insurance plan are:
- Protection From Several Chronic Illnesses
The add-on will offer you financial security against several chronic illnesses, including cancer, heart disease, stroke, kidney failure, organ transplant, paralysis, liver disease, etc. *
- Amount Guaranteed Upon Diagnosis
Plans for critical illness are fixed benefit plans. This implies that if you add a critical illness add-on to your current health insurance policy, you will be entitled to receive a set sum of money should you be found to have any of the critical illnesses listed in the policy document. Regardless of the actual cost of your treatment, this amount will be paid to you. In addition, the guaranteed amount will be paid to you directly, which means you are free to put it to use however you see fit. * ##
- Helps Deal with High Medical Costs
The cost of treating and caring for severe conditions can be extremely high. Having health insurance top-up plans greatly help cover those expenses. Additionally, critical illness insurance could help you receive the most outstanding care at the world’s top medical centres for any ailments that are covered. *
- Benefits are Given Right Away Upon the Diagnosis
The insured receives the benefits of this health insurance top-up as soon as a disease or condition is discovered. From that moment on, it is covered by the policy. This eliminates waiting time to obtain the guaranteed sum, and you can begin your treatment as soon as your condition is diagnosed. *
- Tax-Free Benefits Are Offered
The fact that the benefits of this add-on are entirely tax-free is another essential pro of including one in your health insurance plan. The sum of money you receive from the insurer if you receive a critical illness diagnosis and choose to submit a claim under your insurance will not be subject to income tax under the Income Tax Act of 1961. * **
Treatment for conditions threatening a person’s life might easily set them back several thousands of rupees quickly. Purchasing critical illness coverage in addition to your health insurance policy can be beneficial in reducing the likelihood that your life savings will be depleted. ##
It is important to have critical illness insurance if you come from a family with a history of serious illnesses or are the sole household income producer.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
‘Insurance is the subject matter of solicitation.’ For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘
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