Over the recent years, most of us will have encountered people who have personally suffered from cancer or have a family member who is living with the disease. Cancer is a word that scares most of us and the treatment process can be extensive. Therefore, the importance of making adequate provisions well in advance to be ready for any such circumstances cannot be overstated.
According to a 2020 report published by the Indian Council of Medical Research (ICMR), India is expected to have 17.3 lakh new cancer cases and over 8.8 lakh cancer deaths in 2021 alone, with lungs, breast, and cervix cancer leading the way. Further, Cancer instances in India is projected to increase by 12% over the next five years.
Besides that, the financial burden on a family with a cancer patient is even more daunting, with the cost of cancer treatment ranging from Rs 20 lakhs to Rs 20 lakhs or more depending on the stage of the disease.
Lack of funds, or inability to access the required amount at the right time, frequently delays access to advanced medical facilities, reducing the chances of receiving quality treatment. This is where a critical illness insurance plan comes in handy.
To proceed with, it is vital to comprehend the distinction between a critical illness policy and indemnity health insurance plans. In the unfortunate event that you develop a life-threatening disease that is covered by the policy, the insurance company will pay you a lump sum amount equal to the sum insured. In contrast, indemnity reimburses the hospital expenses that were incurred.
When it comes to critical illnesses like cancer, you may consider:
Why is important to buy critical illness insurance at a young age?
Over the years, financial advisors have always recommended investing in a critical illness policy at a young age, which provides you with advantages like low cost, having the full benefits, and covers more than hospitalization.
Why should you add critical illness cover in your well-thought-out financial plan?
A critical illness policy is the best way to protect one's family from the financial burden of cancer treatment. It is crucial to highlight that good cancer treatment comes with an expensive treatment option. When it comes to critical illnesses, the cost of treatment is commonly quite high. Not only does critical illness necessitate long-term treatment, but it may also have a negative impact on your earning potential. With high medical costs and a low income, a basic health insurance policy will not suffice to meet your financial needs. A critical illness plan serves as a safety net against such a financial burden.
Here are some things to keep in mind while buying a Critical Illness cover:
Individual plan– Depending on your family's financial situation and medical history, you can purchase Critical Illness insurance as an individual plan.
To get the right coverage for you and your family, you must pay a premium. It is influenced by a variety of factors, such as the product you select and whether or not it is an individual policy.
While there is a lot of information available about various aspects of cancer, it is also important to understand another aspect of cancer, which is securing treatment costs during such unforeseen medical circumstances through Critical Illness insurance.
-by Shreeraj Deshpande, Head – Health Business, SBI General Insurance