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Life Insurance
25th Nov 2025
The WHAT, WHY, and HOW of Critical Illness plans
The WHAT, WHY, and HOW of Critical Illness plans
The WHAT, WHY, and HOW of Critical Illness plans
A stressed and hectic day to day life has made us susceptible to a host of lifestyle diseases. Experts claim that one out of 4 Indians is likely to fall prey to non-communicable diseases before the age of 70. A traditional health plan might not be sufficient for such conditions, owing to the high cost of treatment and medication. Here is where a Critical Illness plan comes into the picture.
What is a Critical illness Insurance plan?
What is a Critical illness Insurance plan?
A critical illness plan offers cover for your medical treatment and other related expenses for 36 dreaded diseases. It is more comprehensive and better than a Health insurance plan. While a regular health insurance plan reimburses your hospital and medical expenses, the Critical Illness Insurance plan is a benefit plan. It pays you a fixed sum if you are diagnosed with any of the critical illnesses that are covered by the policy.
Why should you go for a critical illness insurance plan?
Why should you go for a critical illness insurance plan?
Can Help You Avail the Best Treatment There Is
Medical treatments are becoming more expensive by the day due to market inflation and the rising costs of medicines. Going to a specialist or an expert doctor is sure to burn a hole in your pocket. As a result, you might opt for a regular doctor or a substandard hospital which is bound to affect the quality of the medical treatment you are receiving. Your health insurance plan does not cover the doctor's fee, transport and other associated costs. A Critical Illness plan offers you a lump sum in case you fall victim to a critical illness. The extensive cover, thus, means that you can approach the best of the doctors in specialty hospitals without having to worry about the cost of treatment.
Protects Your Family Financially
If you are diagnosed with any critical illness, you will likely miss out on work. This might lead to a loss of income. The issue becomes all the more significant if you are the only breadwinner in the family. In case of insufficient savings, your family will be staring at a financial crisis. The CI payout can help in paying your outstanding liabilities and debts, your medical and other related expenses, all the while cushioning your family financially.
Helps You Save on Taxes
Another benefit of Critical Illness Insurance is that you save on taxes. The premiums you pay towards critical illness insurance are tax-deductible under sections 80(C) and 80(D) of the Income Tax Act, 1961.
How do you select the best Critical Illness policy for you?
How Do You Select the Best Critical Illness Policy for You?
Buying a Critical illness plan has been made easy online. We give you three easy steps in which you can decide on the best plan for you:
- Check the features and compare various plans using various online tools available.
- Estimate the premium using the critical illness insurance premium calculators.
- Go through the Terms and Conditions carefully.