These insurances pay a fixed benefit if you get any of the specified critical illnesses. The payment is not linked to actual costs incurred by you. Increasingly, these plans cover a large number of diseases some of which may not be covered under a under a regular mediclaim.
Critical illnesses can result in high incidental costs such as loss of wages, home nurses, and medical equipment. These costs are not covered under a regular mediclaim insurance. The benefit of a critical illness plan is that these costs are compensated for by the fixed benefit.
Medical inflation is reported to be increasing by over 20 per cent each year. A high sum assured critical illness plan provides an excellent way of safeguarding yourself against future increases.
When the claim is made, the lump sum amount is given to you for treatment, irrespective of what it is used for - specialist’s fees or medicines. This amount can also be used to pay off liability, support the dependents or any other financial purpose too.