As we celebrate a new year every year, we grow older, and all know old age brings unwanted diseases. But the problem with today’s generation is not that we will have diseases when we get old, that is bound to happen, but the problem lies in the reduction of age for various diseases. Due to our lifestyle, our generation is getting diseases which in our age the previous generation never got. For example, a heart attack at the age of 20 was unheard of even 20 years ago. But now we can see that everybody can get any lifestyle-based disease. What can we do about it?
The first most obvious thing to do is change our lifestyle and shift to a healthier lifestyle. But sometimes our health is not in our control which can be the case for hereditary diseases; what do you do then? It isn’t much you can do about it other than take early precautions, but something you can definitely do is take early critical illness insurance. That is because even though most diseases can be cured today, the financial drain it can cost you and your family is a lot. Even though you cannot control what happens to your body, you can make sure you get the best treatment.
How does a critical insurance plan work?
There’s a huge difference between critical insurance (CI) plan and a medical plan. A lot of people usually get confused between the two and think if you have one, you do not need the other. Well, they both work differently. A CI healthcare plan will pay you the whole lump sum of money you are entitled to according to the health care plan. If you have a serious ailment such as a stroke or cancer, the healthcare plan will pay you the whole amount, which you are entitled to immediately, no questions asked. It doesn’t matter what your hospital bill is; you will get the money you are promised. When it comes to mediclaim, it works a bit differently. A mediclaim will only reimburse your hospital bill and sometimes only a certain percentage of it. It depends on the terms and conditions of the plan.
The waiting period of a Critical Illness plan
There are a few rules when it comes to claiming your money for the plan. The first rule is that you need to wait for 30 days after your diagnosis, only after which you can register your claim. Some companies also allow 28 days or 0 days. It depends on your healthcare company.
The second rule is that, after your policy has started, for the first 90 days, you cannot claim any money. If you are diagnosed with an illness within the first 90 days of your policy, or if you die within the first 30 days of your policy, you cannot claim any money for it.
5 reasons to have critical illness insurance early
Now that we know what critical illness insurance is and how it works let us understand why you need critical illness insurance early. When we are in our 20s, it is a wonderful time of our life. We experiment with new things and learn a lot of new things. But in your 20s, it is also important to look ahead into your future and decide. One of the most important decisions is to buy a healthcare plan for you. Now, if you’re wondering why you should get a healthcare plan when you feel completely healthy, take a look at the following points:
- Low Premiums: The fact that you are young is going to work in your favour. When a person goes to buy healthcare insurance, the company sees its age and health condition and charges the premium accordingly. This happens because the company is looking at the risk factor. If you are more likely to get ill soon, the company will charge more premiums. Since you are young and healthy, the company will charge you a very less premium. So overall, you will be saving a lot of money while getting a healthcare plan at the same time.
- Waiting period: As mentioned above, you need to wait for around 90 days after registering for your policy to claim it. Other factors create other waiting periods, for example, health conditions like diabetes or hypertension. These health conditions create additional waiting periods, which can be a long time. But if you are young, you do not have to wait for so long. That is because you do not have any or many health problems. So you can get the option of claiming your critical Illness insurance soon enough.
- Lower chances of getting rejected: In most cases, people who are older and/or suffering from health problems get rejected for critical illness insurance. That is because the insurance companies think from a business perspective, and they can see that they will have to pay this person soon enough. If you are young, there is very little reason for an insurance company to reject you.
- Tax Benefits: Section 80D of the Income Tax act gives a lot of benefits to people on the premium amount you pay for your insurance. Now, if you have insurance from a young age, you will be benefiting from the act. In this process, you can save up a lot of money.
- More options: As you grow older, your insurance company’s options will give you for a healthcare plan will get limited. This does not happen when you are younger. So you get the opportunity to get the best healthcare plan which is available from the company.
We can see how important critical Illness insurance can be for people of all ages. There are much insurance like the Hong Leong domestic helper insurance in Singapore, which caters to young people. It is always advisable to get insurance from a young age, so without waiting, get insurance for yourself now!