Note (September 2026): From 1 April 2026, India’s Income-tax Act, 2025 replaced the Income-tax Act, 1961. Most of the deductions mentioned below continue under new section numbers (for example, the Section 80C deduction of up to ₹1.5 lakh is now in Section 123), and most of them can be claimed only under the old tax regime, while the new regime is the default. Check the Income Tax Department’s website for the current rules before you file.
Staying well prepared financially for future medical expenses is always a wise decision. We often keep hearing about people suffering from heart attacks, cancer, and kidney failure now and then. It has become so common these days that we need to be financially ready for such unforeseen medical emergencies. In such cases, buying critical illness insurance covers is a reliable option.
Critical illnesses are long-term medical issues that require expensive treatment. Heart ailments, renal failure, cancer, tuberculosis, tumours, permanent paralysis, etc., are some of the critical illnesses that get coverage in critical illness insurance. You can pay treatment and hospitalisation expenses with the help of the lumpsum amount you receive. A critical illness cover will help you manage such expenses.
Reasons to Buy Critical Illness Insurance
If you have a family medical history of critical diseases, then consider buying critical illness insurance as your priority. Also, if you have lifestyle diseases such as diabetes and obesity, then purchase this insurance. It will help you cover your expenses when you aren’t able to earn due to critical illness.
If you want to stay tension-free regarding your financial stability during the treatment of critical illness, you should opt for critical illness insurance.
If you are the sole breadwinner of your family, it will help you manage your household expenses along with the medical expenses when in critical health condition. Having a term life insurance with a critical illness rider will help you to cover all expenses for quality medical care. This is attained by the lump-sum amount paid that can take care of immediate medical expenses without compromising on your lifestyle.
If you are working at a high-risk job, where you experience high work pressure, you may be prone to critical diseases in the future. Keeping this in mind, you should buy critical illness insurance.
You should prefer buying a critical illness insurance policy at a younger age as the risk of occurrence of critical illnesses at a later age increases.
Benefits of Critical Illness Insurance
You can claim tax deductions under ITA section 80D for the premiums paid for your insurance.
If you anticipate that the costs of treating critical illness may rise in the future due to unforeseen circumstances, you have the option to increase the substantial sum assured. It will eventually keep you well-prepared to pay the rising expenses of your treatment. It covers major life-threatening diseases such as cancer, heart failure, lung failure, Alzheimer’s, etc.
Disability coverage is also one of the benefits of critical illness insurance. In any case, if, unfortunately, you suffer the loss of limbs, permanent paralysis, or any permanent disability due to accidents, this insurance will cover all of them.
You will receive a large sum from the insurer when you are diagnosed with any of the critical illnesses covered under the insurance policy. This facility will help you start your treatment as soon as possible. It will also cover your post-recovery expenses.
Suppose you are buying a term life insurance with a critical illness rider. In such cases, you will receive a lump sum amount after the diagnosis of critical illnesses covered by the insurer.
Claim Your Critical Illness Insurance
To claim your critical insurance, you need to submit documents such as a claim form, medical evidence, hospital certificate, diagnosis report, etc. After submission of the documents, the insurer will go through and cross-verify. After verification, it will take around 30 to 60 days to settle the claim.
If you still need to claim your insurance, you should claim it within six months to receive the maximum benefits.
Seeing the ratio of increasing critical illnesses recently, you must consider buying critical illness insurance or term life insurance with a critical illness rider. This will ensure your financial stability during critical times and aid in receiving the best medical treatment. There are many insurers available, such as Canara HSBC Life Insurance. They can help you understand the working process and benefits of critical illness insurance. So, get in touch with online insurers and buy insurance that will help you manage unforeseen medical expenses today!
A condition that applies to the tax benefits described above: the Section 80D deduction for health insurance premiums can be claimed only if you file under the old tax regime. They are not available under the new regime, which is now the default — so check which regime you are on before counting on these benefits. Tax rules change at Budget; confirm the current position for your assessment year before acting on it.
