Health concerns such as strokes, cancers, heart attacks, and kidney failures are all too common these days. It is quite likely that someone you know has been a victim of these health complications. The treatment required for these critical illnesses includes hospitalisation, long-term medication, therapies, and so on. These treatments can put quite a dent in your savings. To avoid such a financial burden, a critical illness insurance policy is the way to go.
However, there are many who are unaware of the benefits of such a policy. In fact, there are many myths regarding a critical illness insurance policy. This misinformation comes in the way of people getting the right coverage they need.
To throw some light on these inaccuracies, we have listed down 4 myths on critical illness insurance which are not true at all:
Myth 1: You do not need critical illness insurance when you are young
When you think of illnesses, you mostly think of old age. However, it is very important to understand that any individual could face critical illness irrespective of what their age is. They might still be young but might have a lot of stress, lead an unhealthy lifestyle, and follow an improper diet, which could lead to a critical illness. This is why it is always good to have a critical illness insurance policy that will financially cover you.
Myth 2: Critical illness insurance is the same as health insurance
For those who are not familiar with the insurance world, a health insurance plan could seem very similar to a critical illness insurance plan. However, the former covers your basic hospitalisation expenses when you are admitted to a hospital. The latter brings you a lump sum amount if you are diagnosed with a critical illness.
Myth 3: There are no tax benefits for critical illness insurance policies
There are many who believe that tax benefits are only applicable on health insurance plans and not critical illness insurance plans. However, this is not true. According to Section 80D of the Income Tax Act of 1961, the premiums paid towards your critical illness insurance plan can qualify for a tax deduction too.
Myth 4: Premiums for critical illness insurance plans are very expensive
This is one of the biggest myths on this list. However, the premiums for critical illness insurance plans are not necessarily expensive. In fact, if you choose to get a critical illness insurance policy when you are young, you can get lower premiums for your insurance policy as compared to the other health insurance plans.
Now that you are aware of the myths regarding a critical illness insurance policy, it only makes sense for you to get one for your financial safety. If you are young, you should not waste any time and get covered immediately to get a good insurance plan. We hope that this article has proved to be a useful read. All the best!