Life is unpredictable. It is sprinkled with moments of pleasant surprises while also being peppered with certain vexing concerns. These intermittent bouts of highs and lows are what make life such a precious gift. It is only fair to protect this gift with savings insurance paired with the benefits of critical illness cover.

 

You may have noticed that when you visit a doctor to address a wound for a physical injury that you have endured, the nurse dresses the wound, and the doctor prescribes certain medicines to prevent the spread of the infection. Similarly, if you suffer from serious ailments, while savings insurance can dress your financial wounds, the benefits of critical illness cover will keep you from sustaining harsh financial blows while seeking medical treatment.

 

Although there are several benefits of having a savings plan, it alone cannot bear the burden that comes with the diagnosis of a critical illness. While a robust financial plan will include a regular income insurance plan that can take care of daily expenses, enhancing your insurance with a critical illness policy will ensure that financial concerns don’t destress you in these delicate times.

 

Defining Critical Illness

Critical illness is defined as an illness, sickness, disease, or a corrective measure such as Cancer, Kidney Failure, Coronary Artery (Bypass) Surgery, Heart Attack (Myocardial Infarction), Heart Valve Surgery, Major Organ Transplantation, Multiple Sclerosis, Primary Pulmonary Arterial Hypertension, Aorta graft surgery, Paralysis, Coma, Total Blindness and Stroke, etc. (source)

 

The Financial Distress of Being Critically Ill

We all like to avoid morbid conversations. After all, it is often recommended by friends and philosophical guides to maintain a positive outlook on life. However, when it comes to building a financial portfolio that we rely on to sustain us in vulnerable situations, the ideal approach is hoping for the best and preparing for the worst.

 

But it is important to know that critical illnesses like heart attacks and cancer are responsible for a higher number of premature deaths in India than road accidents. According to a World Cancer Report in 2018, there were about 1.16 million new cancer cases and nearly 784,800 cancer deaths that affected the Indian population. This included various types and forms of cancer, all of which accounted for 49% of new cases.

 

Here are some things that are commonly observed in financial planning:

• Not taking a wholesome approach: It has been observed that people are often sensitive while planning for the future and will rightfully invest in a savings plan to take care of the rising cost of higher education for their children or set aside money for their marriage.
  
  They even secure their retirement by buying a regular income insurance plan so that their daily expenses are taken care of. However, the one thing that is carelessly neglected and can burn a sizable hole in your pocket is the diagnosis of a critical illness.
  
  The benefits of critical illness cover are not recognised by many. While a part of it can be blamed on an avoidant approach that believes, “nothing will happen to me,” the other side of the coin is not having adequate knowledge about what all is taken care of under a critical illness cover.
  
  

• Not considering the unhealthy lifestyle: There is no denying the fact that hospitalisation expenses have been rising by the day. In addition to this, the sedentary way of living and indulgence in an unhealthy diet is responsible for a rise in lifestyle diseases. The possibility of contracting a critical illness must not be ignored simply because the idea disturbs the mind.
  
  
• Neglecting the scope of insurance and the time of recovery: When an individual is diagnosed with a critical illness and is hospitalised under intensive care for treatment, the regular insurance policy will only pay for the hospitalisation expenses. However, after treatment, some illness requires the patient to rest for an extended period. This time could be six months or even a year for which the employer cannot pay the employee a salary. In such an instance, the patient’s financial standing can be greatly compromised.
  
  The savings start to rapidly deteriorate, and the premiums towards a savings plan gradually stop – putting your future planning at risk. Even a regular income insurance plan is not adequate in such situations. The stress of insufficient finances might force the patient to shorten the phase of recovery – worsening an already delicate situation. The push to return to work sooner than recommended by the doctor might cause a relapse in your illness.
  

 

Preventing the Financial Deterioration

Aside from having savings insurance, it is essential to amplify your financial protection with a critical illness policy. Here are the benefits of critical illness cover for a comprehensive financial plan and timely recovery:

• Acts as Income Replacement: The first financial concern that bothers an individual on the diagnosis of a critical illness is how to supplement the income. The concern of mounting bills can be dealt with ease through a critical illness cover.
  
  Tata AIA Life Insurance Plans have the option to choose a critical illness rider^# that will ensure that the finances are looked after.
  
  

• Provides Tax* Benefits: Buying a critical illness policy offers dual tax* benefits helping you save more while getting greater insurance coverage. Under Section 80C of the Indian Income Tax* Act, the premiums paid up to ₹1.5 Lakh towards a life insurance policy are exempted from taxes. In addition to this, Under Section 80D, an additional ₹25,000 of tax* exemption towards health cover premiums are permitted.  
  
  
• Offers Peace of Mind: We are used to focusing on physical health, but a strong mind ensures a healthy body. If financial concerns play on the mind while recovering, the health condition tends to deteriorate further. Having a critical illness cover takes care of the monetary requirements offering the patient the much-needed peace of mind for a steady recovery.  
  
  
• Increases Chances of Survival: Financial concerns might keep an individual from seeking the right treatment. When it comes to matters of health, it is important to seek the best treatment, and money should not prevent a patient from seeking it. A critical illness cover will ensure that money does not come in the way of wholesome medical care.
  
  

To conclude, foresight is an important consideration while devising a strong financial plan. As illnesses cannot be predicted, a critical illness policy is a step in the right direction to securing your finances from the risk of running out.

 

L&C/Advt/2022/Aug/2004