Why Is Critical Illness Insurance Necessary for Self-Employed?

If you are self-employed or I can say run a small business, then you might be working dramatically longer hours than those working professionals. You may also tend to take less vacation time.

As a result, the chances of getting critical illnesses are higher. Being self-employed or running a business requires a tremendous amount of work and tension. Without a proper health insurance, all the time and money spent in building your company could lead to a greater health risk.

A critical illness policy makes sure that if your doctor diagnoses you with serious illness, you can continue focusing on your business and growing it, without caring for financial help to get recovery.

In many countries, including India, business owners potentially protect themselves and their families with Critical Illness Insurance to fight against serious and unexpected medical conditions.

Critical Illness Insurance Benefits for Business Owners

A critical illness insurance policy or critical illness cover or a dread disease insurance product is a type of health insurance product, which makes a lump sum cash payment in case the policyholder is diagnosed with one of the predetermined critical illnesses.

A list of most common critical illnesses that are covered under the policy are:

• Cancer, stroke, heart attack
• Coma, Deafness, Kidney failure
• Loss of limbs, speech
• Paralysis, Parkinson’s disease
• Severe burns, Aortic surgery
• Heart valve replacement
• Coronary artery- bypass surgery
• Major organ transplant and many others

As self-employed when you buy critical illness insurance, you should make sure which of the critical illnesses are covered.

Why the Need for a Critical Illness Cover for Self-Employed?

Critical illness is offered with the intention to provide financial support to the insured following the diagnosis or treatment of an illness deemed critical.

The finances offered to the policyholder could be used for:

• The payment of the expenses incurred on medical treatment of the disease
• The payment for recuperation aids
• For replacing any lost income due to a decreasing ability to earn
• Or even for financial help to change lifestyle

The policy financially protects the policyholder or his/her dependents by repaying a debt owing to the policyholder suffering a critical illness or he or she succumbs to death.

Insurance companies design this product in a way that they can:

• Repay a portion of the outstanding mortgage debt on the contracting of a critical illness.
• Repay the outstanding mortgage debt fully on the death of the policyholder.

In addition, some insurance companies make the full sum assured on diagnosis of the critical illness. But in this case, no further payment is made on the death of the policyholder.

For a self-employed person or business owner at the age of 30, the monthly premium for the Rs 20 lakh sum insured could not be very high. What’s better is there is likely a way in which you can reap tax benefits against the premiums paid.

Top Critical Insurance Policies in India

A number of critical insurance policies from different insurance companies are available in India. You can buy them online or offline. Here are some of them.

Religare Health Insurance Critical Mediclaim

Religare Critical Mediclaim is an affordable critical health insurance plan. This policy covers the following critical illnesses:

• Heart ailments
• kidney problems
• Cancer
• Major organ surgeries
• Stroke
• Paralysis, etc.

Care (Religare) Critical Mediclaim is a policy that helps policyholder by providing much needed financial respite in case of any of the defined critical illness cases. Coming with higher sum insured options, from Rs 10 lakh to Rs 200 lakh, the policy offers comprehensive medical solutions and ensures lifelong well-being. Major benefits include cover for international second opinion and air ambulance cover., doctor on call, quick recovery counselling, etc.

Max Bupa Health Insurance Criticare

Max Bupa Criticare is a well-recognized critical illness insurance plan. Covering as many as 20 life-threatening diseases, the policy pays a lump sum amount up to the sum insured in case the policyholder is diagnosed with any of these diseases. List of diseases include:

• Open Chest CABG
• Liver Disease
• Lung Disease
• Coma of Specified Severity
• Cancer

For a complete list of illness, click here.

This policy of Max Bupa can protect your savings from draining away due to any one of the pre-defined critical illnesses. Further, the policy can be bought online for 1, 2 or 3 years. What makes this insurance product different is its two options. Under the first option, you can get a lump sum amount and one the second option, the sum insured is payable as a lump sum plus an additional 10% of the sum insured is paid each year for the subsequent 5 years.

Star Health Insurance Criticare Plus

Star Criticare Plus Plan from Star Health is another critical insurance policy suitable for self-employed individuals. Since a business owner has severe pressure regarding the growth of their business, they are more likely to develop the life-threatening disease. So, Star Health under its Criticare Plus reimburses the amount incurred for hospitalisation expenses due to illness and/or accidental injuries. The policy covers the following illnesses without any survival period:

• First Diagnosis of Cancer
• Established Irreversible Coma
• Established Irreversible Quadriplegia
• Established Irreversible Paraplegia
• Cerebro Vascular Stroke Causing Hemiplegia

For a complete list of illness, click here.

This product of Star Health pays a lump sum amount in case of diagnosis of critical illness. The sum insured is determined based on individual member covered. Like the Max Bupa Health Insurance Criticare, the Criticare Plus by Star Health is also divided into two options: Section 1 and Section 2. Section 1 allows you to get coverage for an inpatient hospitalisation, non-allopathic treatment, costs of medicines, etc. Section 2 lets you avail the benefits of no survival period, lump-sum compensation and hospitalisation expenses.

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Conclusion

If you suffer from a serious ailment, why would you like to break your saving and use your money to cover medical expenses? It’s the right time to think bout how well your family and your business could cope financially if you suffer from a critical illness.

Critical insurance can provide you or your family members with financial protection if you suffer something serious and live or die. With that critical illness insurance for a self-employed person or small business owner is a very important and smart investment.