Critical illness insurance is a type of benefit-based policy which helps you financially when you or your loved ones are diagnosed with a critical illness. Earlier, these kinds of policies were preferred mostly by those in their 40s and 50s. However, with people of younger ages getting afflicted with serious illnesses and getting major surgical procedures that cost lakhs, the need for critical illness insurance policies amongst the young has also grown. So, is it a financially wise idea to get one in your 20s? Let’s explore the answer in this article.
Increasing risk of serious illnesses amongst the youth
Nowadays, it is not uncommon for young people to get a heart attack or get afflicted with cancer. In the last few years, cases of breast cancer amongst women in their 20s and 30s has increased exponentially. There could be several reasons for this such as genetics, stressful lifestyles, exposure to pollution of several types, and so on. Many in their 20s have corporate jobs which result in sedentary lifestyles. As has been proven by many studies, this is the pathway to getting life-threatening illnesses.
A healthy lifestyle can help reduce some of these risks. However, a critical illness insurance policy helps one be prepared for the worst. The lump-sum payment received on diagnosis helps the patient cover not just the treatment but also other expenses such as travel for treatment and can even act as an income replacement.
Premiums are low during the 20s
Like most health insurance policies, a critical illness insurance plan also incurs lower premiums when the policyholder is in their 20s. As the policyholder ages, the premiums of their policy increases. You can take advantage of this feature when in your 20s and cover your finances against critical illnesses at low costs. What’s more, you can also get tax benefits on the premium of your critical illness insurance as per prevalent tax regulations. This makes it a good addition to building your financial portfolio.
A step forwards towards financial independence
Individuals in their 20s or 30s may not be financially ready for the costs of dealing with a critical illness. Many of them are only at the beginning of their career ladder and may have recently started taking decisions regarding their own finances. A critical illness insurance policy that helps them cope with the finances when the tough times hit can be a prudent decision to make. It can also help them achieve a certain sense of independence as they can rest assured that they do not have to rely on anyone else for money if they ever get diagnosed with a critical illness.
Helps in planning for the future
Planning for the future is an important part for many who are in their late 20s. If the future includes a family as well, then they can do well to purchase a critical illness insurance plan along with their health insurance plan early. With low premiums paid now, they can switch to a family-based plan easily in the future. This will help them cover their children and their spouse as well.
The need for critical illness insurance is prominent even at a young age since we never know what the future will bring. Most CI plans cover not only illnesses but several major medical procedures such as open heart replacement, major organ transplant, open heart CABG, and so on. Medical conditions such as deafness, blindness, loss of limbs, and so on are also covered.
Making certain financial decisions can be tough sometimes, especially when you are doing it for the first time. You can take a look at the above-given benefits and decide whether opting for a critical illness insurance plan would be apt for you right now. Good luck!