All You Need To Know About The Benefits Of Critical Illness Insurance
If you’re lucky, you may not have had to take out insurance for a severe illness. However, in the event of a grave health emergency such as cancer, heart attack or stroke, insurance for a severe ailment may be the only one standing between you and financial ruin. Many believe that standard health coverage plans give complete protection, but the costs of treating life-threatening illnesses usually exceed what any plan can cover.
What is critical illness insurance?
The policy for serious illness gets defined as benefit health insurance. The defined benefit plan pays a lump sum in the event of an insurance accident. Serious illness insurance pays a lump sum, as opposed to basic insurance, which covers the actual costs of hospitalization. For this reason, a grave sickness policy not only allows you to pay for incidental expenses but also supplements your earnings if you are unable to work due to your illness.
Why do you need to get a critical sickness insurance plan?
- Replacing income
Assume you have a stroke and experience partial paralysis on the left part of your body. In such a situation, it would get challenging for you to work and earn a living. However, if you have coverage for a severe illness, you can claim insurance and use that money for medicine and meal payments. It is beneficial for those who earn the only livelihood in the family. Certain aspects of this plan are always reason enough to choose a critical illness plan with significant coverage.
- The amount received from insurance is tax-free.
Another significant benefit of using intensive care insurance is duty-free. If you are diagnosed with a grave illness and decide to apply for insurance, the payment you receive from the program is tax-deductible. This way, you can use all your money for your purposes without paying a percentage to the government.
- No end-use restriction
Contrary to health insurance policies, you can use your money appropriately as needed. So, you can use this amount to get quality care in a first-class health care facility or meet other needs. The insurance company has no control over the use of your insurance amount.
Singapore critical illness insurance allows you to focus on the quality of care and recovery rather than the financial aspects. Serious illness, like any other disease, is common. If you understand the importance of a standard health insurance policy, you can understand why choosing an intensive care plan turns out to be significant.